Today, the Labor Standards Act will change in 2023.
Let’s learn about the employment contract form!
5% increase in minimum wage in 2023
division
minimum wage
salary
(Based on 40 hours per week, 209 hours per month)
increase rate
2022
9,160 won
1,914,440 won
5%
2023
9,620 won
2,010,580 won
The minimum hourly wage in 2023 is 9,620 won, a 5% increase from the previous year.
Based on 40 hours a week, the monthly salary including weekly holiday allowance is 2,010,580 won.
💰 What is the minimum wage system?
The minimum wage system is a system in which the government sets the minimum level of wages and protects wage earners by forcing employers to pay wages above the minimum level.
🔍 I’m curious about the workplaces and workers to whom the minimum wage is applied!
Applies to all businesses or businesses with one or more workers. It also applies to all workers (regular, irregular, part-time workers, youth workers, foreign workers, etc.) under the Labor Standards Act.
📢 Things you must tell workers
1️⃣ Minimum wage amount
2️⃣ Wage not included in minimum wage
3️⃣ Scope of workers excluded from application
4️⃣ Effective date of minimum wage
The above four matters must be posted in a place where workers can easily see them or made widely known to workers through other appropriate methods. If you do not inform us of the above information, you will be subject to a fine of up to 1 million won, so make sure you take care of it, right?
Mandatory installation of rest facilities
From August 18, 2022, a system requiring the installation of rest facilities at workplaces has been implemented.
Accordingly, employers must install a break room where workers can take appropriate rest.
If rest facilities are not installed or the installation and management standards set by the Minister of Employment and Labor are violated, a fine will be imposed.
⛲ Standards for installation and management of rest facilities!
There are installation and management standards set by Ordinance of the Ministry of Employment and Labor, including size, location, temperature, and lighting. You must check the conditions before proceeding with installation.
📅 How long do I have to install it?
The application date varies depending on the workplace standards, so you need to check carefully! Please refer to the standards below and implement them according to the standards appropriate for each company.
1️⃣ Businesses with 50 or more full-time workers: August 18, 2022
2️⃣ Businesses with 20 to 50 full-time employees: August 18, 2023
3️⃣ Businesses that meet the criteria below: August 18, 2023
–
1. Business establishments employing 20 or more full-time workers
2. A workplace with two or more full-time workers in any of the following occupations and employing 10 to 20 full-time workers.
telephone agent
care service worker
telemarketer
delivery man
Cleaners and sanitation workers
apartment security guard
building security guard
–
* In the case of construction industry, separate standards must be confirmed.
🙅♂️ Not applicable to workplaces
For workplaces with fewer than 20 employees, this mandatory rest facility installation system does not apply.
Meal tax exemption limit increased by 200,000 won
Following the revision of the Income Tax Act on August 12, 2002, the tax-exempt limit for meal expenses will be raised from 100,000 won to 200,000 won from January 1, 2023.
Amendments to the Income Tax Act (Act No. 18975, August 12, 2022, partial revision): Meal expenses tax exemption limit of up to 200,000 won
before revision
After revision
Article 12 of the Income Tax Act (Tax-exempt income)
Income tax is not levied on the following income:
1.·2. (skip)
3. Income that falls under any of the following items among earned income and retirement income:
go. ~ more. (skip)
russia. Meals or meal allowances prescribed by Presidential Decree
what. ~ Me. (skip)
4.·5. (skip)
Article 12 of the Income Tax Act (Tax-exempt income)
Income tax is not levied on the following income:
1.·2. (skip)
3. Income that falls under any of the following items among earned income and retirement income:
go. ~ more. (skip)
russia. Meals or other food provided to workers through in-house meals or similar methods, or meal allowances of less than 200,000 won per month received by workers (limited to those who do not receive meals or other food)
what. ~ Me. (skip)
4.·5. (skip)
We have summarized the issues that change when non-tax items are increased!
💸 Earned Income Withholding
As the non-taxable amount of meal expenses increases in taxable compensation, the amount of earned income withholding tax decreases. This has the effect of increasing the actual income.
🩺 4 major insurance premiums
As non-tax items are excluded from the average monthly compensation, which is the basis for calculating the four major insurance premiums, the worker’s actual income increases.
🍚 Meal expenses included in minimum wage
In accordance with the minimum wage law, the ratio of welfare expenses such as meals and transportation expenses included in the minimum wage will change. Therefore, when determining whether the minimum wage is below the minimum wage, it is necessary to consider the amount included in meal expenses and review the wage design and whether the minimum wage is below the minimum wage.
📄 Rewrite employment contract (salary contract)
Pursuant to Article 17 of the Labor Standards Act, if wages, prescribed working hours, holidays, vacations, etc. are changed after concluding an employment contract, it is stipulated that this must be specified in the employment contract. It is advisable to rewrite the employment contract, reflect the changed wage items in the contract, and then issue and keep it.
employment contract
○○ Co., Ltd. CEO ○○○ (hereinafter referred to as “User”) and ○○○ (hereinafter referred to as “Worker”) enter into an employment contract as follows.
Article 1 [Department and position]
1. Working Department:
2. Position/Rank:
Article 2 [Working location and work details]
1. Place of work:
2. Work details:
Article 3 [Working days and working hours]
1. Working days/holidays: ○ days a week (or daily basis), weekly holidays ○ days a week
2. Working hours: ○○:○○ ~ ○○:○○ (Break time: ○○:○○ ~ ○○:○○)
Article 4 [Wage conditions]
1. Wage amount
1) Hourly wage (day, month): ○○○ won
2) Bonus: None ( ), Yes ( ) ○○○ won
3) Other benefits (allowances, etc.): None ( ), Yes ( ) ○○○ won
2. Payment date: ○th day of every month (weekly or daily) (in case of holiday, payment is made on the previous day)
3. Payment method: Payment to savings account ( ), direct payment ( )
Article 5 [Others]
Matters not specified in this contract are subject to the Labor Standards Act and employment rules.
Contract Date: Year 20 Month Day
(A) Address:
Company Name :
Representative: ○ ○ ○ (Seal)
contact :
Address:
Name: ○ ○ ○ (Seal)
contact :