SK Hynix has proposed a significant increase to the maximum performance bonus payout rate to the labor union, aiming to narrow the gap in opinions that arose between labor and management regarding performance bonuses earlier this year. The company also introduced a plan to return any remaining bonus funds to employees in the form of savings or pension schemes after the bonuses are paid out.

According to industry sources on the 27th, SK Hynix's union and management discussed these proposals during the "8th Wage Negotiation for 2025" held at the Cheongju Campus the previous day.

The PS (Performance Share) is an incentive paid once a year based on annual performance, with a maximum of 50% of annual salary (equivalent to 1000% of base salary). Since 2021, SK Hynix has been allocating 10% of the previous year's operating profit as the bonus pool, distributing PS to employees based on individual performance.

Previously, management proposed raising the PS cap from the existing 1000% to 1700%. In addition, management suggested that if there is any remaining portion of the 10% operating profit pool after paying out 1700% PS, 50% of the surplus would also be used as additional PS funds for employees. The remaining half would be allocated to future investments and other uses.

In this negotiation, management detailed plans to guarantee and secure the payout of amounts exceeding the cap. Two options were presented: a "5-year savings plan" and a "2-year plus 3-year pension plan," both of which would ensure the full distribution of these funds to all employees.

SK Hynix Cheongju Campus. Provided by SK Hynix

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Under the savings plan, if the PS payout rate (IB) falls below a certain level within five years, the accumulated funds would be paid out up to 1700%, and any remaining funds would be paid in a lump sum at the end of the five-year period. The pension plan would accumulate the funds for two years, then distribute the entire amount evenly over the following three years.

SK Hynix achieved its highest-ever operating profit last year (23.4673 trillion won), and at the beginning of this year, paid out PS equivalent to 1500% of base salary and awarded 30 shares of company stock as a bonus. However, the union and employees argued that a higher level of special performance bonus should have been paid, leading to conflict.

In response, SK Hynix gathered employee feedback on new standards for the excess profit distribution (PS) at both the Cheongju and Icheon campuses in mid-June. The company is expected to continue wage negotiations with the union for permanent and technical office staff based on the newly proposed plans.