Urgent.News

What's breaking now, across thousands of outlets.

Business

공공기관 공공성·노동권 왜곡하는 총액인건비 [왜냐면]

The so-called "total wage payment system" introduced by public institutions to curb excessive administrative spending and secure fiscal stability has devolved into a twisted device that violates public value and labor rights. Government directives to uniformly adjust salary increase rates across all institutions, disregarding their unique characteristics, have led to serious consequences across public sectors.

The most pressing issue is the discrepancy between minimum wage increase rates and total wage payment increase rates, which traps low-wage workers in a precarious position. In many public institutions, subordinates with salaries near the minimum wage are forced to endure wage cuts or freezes to comply with the preset total payment limit, despite any increase in subordinate wages to comply with the minimum wage law.

This draconian system exacerbates conflicts within public safety agencies, where workers are often called upon for emergency duty during large accidents or national emergencies. The rigid total wage payment ceiling leaves no room for overtime pay or "effectively unpaid labor" during such situations. Moreover, the government's one-size-fits-all approach to salary increases has resulted in a widening gap between institutions with varying baseline salary levels, creating a stark polarization of income levels among public institutions.

In addition, public institution managers have no control over total wage payment decisions, as the authority lies entirely with the government. Consequently, labor negotiations have become a mere game of political bargaining between labor and management, undermining the constitutional right to collective bargaining. The total wage payment system, if it jeopardizes the safety of public services and violates workers' rightful compensation, signifies that the system has outlived its usefulness.

The government must immediately initiate fundamental reforms to the total wage payment system, including granting discretionary authority to public institution managers to independently determine the system, adjusting increase rates on a differentiated basis to alleviate institutional disparities, and ensuring that the total wage payment exception applies to minimum wage increases and overtime pay for emergency duty.

The government must recognize public institution salaries as an essential investment to provide safer, higher-quality public services to the nation.

Written by urgent.news from Hankyoreh's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

Read the original at hani.co.kr →

More in Business

Parkin expands beyond UAE with Egypt smart parking deal

Dubai: Dubai-based parking operator Parkin is expanding into Egypt , signing an MoU with three Egyptian companies to explore the development of smart parking and mobility solutions in the country. Sign up for our daily business newsletter, Cheques & Balances The MoU with Modon Misr for Asset and Facility Management, Mwasalat Misr and…

GIPA, GUTA agree measures to protect local traders

The Ghana Investment Promotion Authority (GIPA) and the Ghana Union of Traders Association (GUTA) have agreed on a collaborative roadmap to protect Ghana’s informal retail sector, which is reserved exclusively for Ghanaian citizens under the GIPA Act, 2026 (Act 1117).

More from Wednesday 19 August →