"Up to 2.5 Times Pay for Working on Labor Day"... No Substitute Holiday Allowed

Subject to Separate Law, Different from Regular Public Holidays
Paid Leave Even for Workplaces with Fewer Than Five Employees, No Additional Allowance

With Labor Day on May 1 newly designated as a statutory holiday starting this year, it has been confirmed that, unlike other public holidays, an alternative holiday cannot be applied. If an employee works on Labor Day, they may receive up to 2.5 times their regular daily wage depending on their work arrangement.

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According to the Ministry of Employment and Labor on April 16, Labor Day is established as a paid holiday on a specific day under the Act on the Establishment of Labor Day, and it cannot be substituted with another day.

This is different from general public holidays such as Memorial Day or Liberation Day. General public holidays are operated based on the Regulations on Holidays of Government Offices, and if there is a written agreement with the representative of employees, the holiday can be transferred to another day.

In contrast, Labor Day is specifically designated as a paid holiday on May 1 to honor the labor of workers, so substitution of the holiday is not permitted.

There are also differences in how wages are paid. For hourly or daily wage workers who work on Labor Day, they receive the paid holiday wage (100%), the actual wage for working (100%), and a holiday premium (50%), totaling up to 2.5 times their regular pay. Even if they do not come to work on this day, the paid holiday wage is applied, and their daily wage is paid in full.

For salaried workers, the paid holiday wage is already included in their monthly salary. Therefore, if they work on Labor Day, only the actual wage for working (100%) and the holiday premium (50%) are paid additionally.

There are also differences depending on the size of the workplace. In workplaces with fewer than five employees, the paid holiday on Labor Day is applied, but the additional allowance stipulated under the Labor Standards Act is not, so no extra pay is provided.

If an employer requires employees to work on Labor Day but fails to pay wages according to legal standards, the employer may be subject to imprisonment of up to three years or a fine of up to 30 million won under the Labor Standards Act.

This content was produced with the assistance of AI translation services.