Some small business employees South Korea paid below minimum wage

Among small business employees, only 9.6% were paid extra for extended working hours and only 13.2% had annual leave provision.
By: | September 8, 2022
Topics: Compensation and Benefits | News | South Korea

A minority of small business workers in South Korea are paid less than the minimum wage, a survey by the Federation of Korean Trade Unions (FKTU) has revealed.

The survey of 470 people working at small businesses with fewer than five employees found that 12.1% of workers were paid wages less than the minimum wage. Of that, 17.2% of women workers were paid less than the minimum wage.

Another 10% of the respondents highlighted facing payment delays. These workers worked an average of 46.3 hours per week, which is 7.3 hours longer than the national average of 39 hours, reported The Korea Bizwire.

Only 9.6% of employees working at small businesses were paid extra for extended working hours, and only 13.2% of them had a guaranteed annual leave provision.

Employees working at businesses with fewer than five people are not protected by the Labour Standards Act, which places them in a legal blind spot.

READ: Big businesses in South Korea hold off hiring plans

“Setting the permanent number of employees as a standard for the law to take effect doesn’t align with the constitutional principle of equality. It may amount to a serious act of discrimination,” said Jang Jin-hee, a researcher at the FKTU.