Samsung Electro-Mechanics Agrees to 7% Salary Increase This Year... Consecutive Raises

[Asia Economy Reporter Jeong Hyunjin] Samsung Electro-Mechanics will increase employee wages by an average of 7% this year.

According to the industry on the 8th, Samsung Electro-Mechanics agreed with the labor-management council the day before to raise the average employee wage increase rate to 7% this year. This includes a basic increase rate of 4.5% plus a performance increase rate of 2.5% based on individual evaluations.

Along with this, both parties agreed to raise domestic travel expenses from 35,000 won to 50,000 won and to provide congratulatory and condolence allowances without differentiation by rank. The previously granted 3-day infertility leave was agreed to be extended to 5 days.

The wage increase rate this year is considered a dramatic level, more than double the previous 2-3%. It appears that the agreement was reached based on the agreement previously made by Samsung Electronics.

Earlier, Samsung Electronics agreed on a total average wage increase of 7.5%, including a basic increase rate of 4.5% and a performance increase rate of 3.0%, on the 26th of last month. Samsung SDI also recently agreed on wage and welfare terms similar to those of Samsung Electro-Mechanics.