Fairness Allowance of 2.48 Million Won to Be Paid to Public Sector Workers with Less Than One Year of Service Who Are Ineligible for Severance Pay

Starting next year, fixed-term workers in the public sector who work less than one year and are therefore ineligible for severance pay will receive a maximum fairness allowance of 2,488,000 won. To hire fixed-term workers for less than one year, a preliminary review system must be implemented.

On April 28, the Ministry of Employment and Labor reported on the "Measures to Improve the Treatment of Non-Regular Workers in the Public Sector" during a Cabinet meeting, in cooperation with related ministries. Previously, President Lee Jaemyung had instructed improvements after issues were raised regarding contracts of less than one year and poor treatment in the public sector, both of which were aimed at avoiding severance pay. In response, a task force on non-regular workers was formed jointly with related ministries to establish countermeasures.

Kim Younghoon, Minister of Employment and Labor, is speaking about the improvement plan for subcontracting operations in the public sector at the Labor Safety Ministers' Meeting held at the Seoul Government Complex in Jongno-gu, Seoul, on April 16, 2026. Photo by Jo Yongjun

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To begin with, a fairness allowance will be introduced for fixed-term workers employed for less than one year at central government agencies, public institutions, and local governments. Under current law, fixed-term workers with contracts of less than one year are not eligible for severance pay. To address this, the government plans to pay 8.5-10% of the average living wage (which is 118% of the minimum wage) to fixed-term workers when they leave their jobs. The payment rate varies depending on the length of the employment contract; the shorter the contract, the higher the rate. Workers on contracts of one to two months will receive 10%, amounting to 382,000 won upon leaving. Those on contracts of 11 to 12 months will receive 8.5%, which is 2,488,000 won when they leave.

A Ministry of Employment and Labor official explained, "By applying a higher compensation rate to short-term contracts, we aim to strengthen compensation for job insecurity. At the same time, by setting the fairness allowance for 11 to 12 months higher than the severance pay, we intend to encourage long-term contracts in the public sector."

The government will also introduce a proper wage system to address wage gaps in the public sector. The proper wage will be set at 118% of the minimum wage, and all fixed-term workers must be paid at least this amount.

Funding for the fairness allowance and proper wage will come from government budgets and the organizations' own revenues. The Ministry of Economy and Finance plans to include provisions regarding the fairness allowance and proper wage in next year's budget guidelines. A Ministry of Employment and Labor official stated, "Since this measure is designed to reduce short-term contracts, the budget size has not yet been precisely estimated," adding, "A general outline will be drawn up in May, when budget requests by each ministry begin."

In principle, contracts of less than one year in the public sector will be prohibited. However, in unavoidable cases, exceptional hiring will be allowed only after passing the preliminary review system for non-regular workers in the public sector. The government plans to improve the system by making it mandatory to include external members on the review committee. Hiring of ultra-short-term workers (less than 15 hours per week) will also be restricted, and if unavoidable, must go through the preliminary review system.

To enhance the effectiveness of these measures, the government plans to regularly monitor employment and wage status. The Non-Regular Workers Task Force in the public sector will check the implementation status of the measures and reflect the results in management evaluations of public institutions and local public enterprises. Additional discussions on improving treatment in the public sector will take place through the Public Workers Committee to be launched in September this year.

Minister of Employment and Labor Kim Younghoon emphasized, "The public sector must take the lead in correcting unfair employment practices for non-regular workers and become a model through reasonable improvements in treatment." He added, "We will ensure that the positive results in the public sector spread to the private sector, so that all working citizens are respected at the workplace and rewarded in accordance with the value of their labor, thus realizing workplace democracy."

Meanwhile, a survey of about 2,100 organizations, including central government agencies, public institutions, and local governments, found that there are about 146,000 fixed-term workers in the public sector. Among them, about 73,000 are on contracts of less than one year, accounting for about half. The average fixed monthly wage (including base pay, allowances, and regular monthly bonuses) was 2,890,000 won, while those on contracts of less than one year earned a lower wage of 2,800,000 won per month. Wage differences occurred depending on the organization, even among workers in the same job category. Compared to regular (public service) workers, fixed-term workers were less likely to receive welfare points, meal allowances, and holiday bonuses.

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