Overview of the Ministry of Strategy and Finance
The total labor cost of public institutions for next year will increase by 1.4% compared to the previous year. However, it was decided to flexibly apply the additional increase rate to low-wage public officials such as indefinite contract workers and low-wage public institutions.
According to the Ministry of Strategy and Finance on the 9th, the government held a public institution steering committee the day before and confirmed the 2022 budget management guidelines for public corporations and quasi-governmental institutions.
The budget management guidelines confirmed this time include setting the rate of increase in the total labor cost of public institutions next year to be 1.4%, the same as that of civil servants. However, in order to close the wage gap between public institutions, it was decided to apply a 1.9~2.4% increase rate to some low-wage public institutions. For low-wage public institutions, the wage level is 90% or less of the industry average and 70% or less of the average wage of public institutions. Even if it is not a low-wage institution, if the wage of public officials (indefinite contract workers) is lower than 85% of the average of all public institutions, the increase rate will be applied by an additional 0.5 percentage point. The annual welfare points received by indefinite workers will also be increased from 400,000 won to 500,000 won, and holiday expenses will be increased by 200,000 won to 1 million won.
Additional wages accrued as a result of the ordinary wage litigation will also be included in the total labor cost limit. The purpose is to prevent similar lawsuits caused by not reflecting the results of litigation in a timely manner in the remuneration regulations and wage system.
In order to induce public institutions to restructure their expenditures, it was decided to freeze current expenses at the same level as last year. Business promotion costs are reduced by 2%. For corporate credit card usage details, there will also be a provision to enable accounting without paper receipts.