Kakao Games scrapped its prior advance overtime agreement system (fixed OT) and shifted to a non-inclusive wage system.
According to the game industry on the 23rd, Kakao Games, through recent labor-management wage talks, abolished the fixed OT system and introduced a non-inclusive wage system starting on Apr. 1.
The fixed OT system pays a set amount of overtime allowance by including a certain number of hours or a fixed amount in the salary in advance. Under this system, employees receive additional pay only if they exceed the prearranged overtime hours.
After the introduction of the non-inclusive wage system, overtime, night, and holiday work allowances are not included in the annual salary and are paid separately by applying the statutory premium rate to the actual overtime worked.
Across the game industry, there is also a trend of abolishing inclusive wage systems. Lionheart Studio adopted a non-inclusive wage system in January this year, and Nexon, NCSOFT, and Netmarble abolished inclusive wage systems in 2019 and introduced a flexible working hours system.