It turned out that last year, the monthly average expense that corporations spent per worker on wages, bonuses, performance pay, welfare expense, and retirement benefits was 6.36 million won. It increased by 230,000 won in one year.
According to the results of the "2024 fiscal year enterprise labor cost survey" released by the Ministry of Employment and Labor on 30th, the monthly average labor cost per regular worker at corporations with 10 or more regular workers was 6.361 million won, up 3.8% (230,000 won) from 2023.
"Labor cost" refers to the amount that corporations incur when employing workers. It is divided into direct labor expense (fixed pay, overtime pay, bonuses, performance pay) and indirect labor expense (retirement benefits, statutory labor expense, nonstatutory welfare expense, education and training expense). Direct labor expense rose 3.9% to 5.085 million won, and indirect labor expense increased 3.1% to 1.276 million won.
Among enterprises with fewer than 300 employees, classified as small and medium-sized corporations, the monthly average labor cost rose 4.1% to 5.292 million won. Large corporations with 300 or more employees increased 2.9% to 7.752 million won. The labor cost at small and medium-sized corporations is 68.3% of that at large corporations.
The gap between large and small and medium-sized corporations was stark in indirect labor expense. In particular, for nonstatutory welfare expense such as meal expense, insurance premium subsidies, and child tuition assistance, small and medium-sized corporations were only 34.7% of large corporations.
By industry, labor costs were highest in finance and insurance, and lowest in business facilities management, business support, and rental services.