The Ministry of Employment and Labor (MOEL) said on the 27th it will pay a "fairness allowance" of up to about 2.5 million won, on top of monthly wages, to fixed-term workers employed for less than one year in the public institutional sector, including central administrative agencies, starting next year. In 2021, when Lee Jae-myung was governor of Gyeonggi Province, Gyeonggi Province paid a province-style fairness allowance to fixed-term workers at the province and its affiliated grants- and investment-funded institutions, and this expands that to the entire public institutional sector.
◇ Fairness allowance calculated based on a living wage
Minister Kim Young-hoon reported a plan titled "Measures to improve treatment of nonregular workers in the public institutional sector" at a Cabinet meeting that day. Under the plan, fixed-term workers employed for less than one year in the public institutional sector, such as office assistants and facility cleaners, will receive 8.5%–10% of the living wage as a fairness allowance, depending on the contract period. A living wage is a wage calculated based on actual living costs and is 2,545,000 won, which is 18% higher than the minimum wage.
The shorter the work period, the higher the compensation rate. Those working 1–2 months will receive 10% of the living wage, and those working 11–12 months will receive 8.5% of the living wage as a fairness allowance. However, because the amount increases in proportion to the period, a person who worked 1.5 months will receive 382,000 won, while a person who worked 11.5 months will receive 2,488,000 won as a fairness allowance.
The MOEL said, "In the case of short-term contracts, we will raise the compensation payment rate to strengthen compensation for workers' employment instability," adding, "There is also the aim of inducing longer-term contracts." As of the end of last year, there were about 73,000 fixed-term workers in the public institutional sector employed for less than one year.
The MOEL also plans to raise the minimum wage for nonregular workers in the public institutional sector to the level of the living wage starting next year. In addition to wages, it will improve meal allowances, welfare points that can be used like cash, and holiday bonuses so there are no differences across the public institutional sector.
◇ Hiring short-term workers, in principle prohibited
At the same time, starting next month, the MOEL will in principle prohibit the public institutional sector from hiring nonregular workers on contracts of less than one year. Exceptions will be allowed only when the need to hire workers for less than one year is recognized due to the nature of the work. Even then, approval must be obtained through the pre-screening system for hiring implemented by each institution. From this year, the Ministry of Economy and Finance will reflect the operation status of this hiring pre-screening system when evaluating the management of public institutions.
The Minister said, "The public institutional sector should take the lead in correcting unfair employment practices toward nonregular workers and set an example through reasonable improvements in treatment."