Raised by 1.0%P from last year... Up to 10% increase
Double the consumer price inflation rate this year
Expanded benefits including 10 additional days of long-term service leave
Samsung Electronics has decided on an average wage increase rate of 5.1% this year after wage adjustment negotiations with the labor-management council.
According to business circles on the 29th, Samsung Electronics announced this information on its internal bulletin board. The average wage increase rate refers to the growth rate of the total annual salary budget paid to all employees, determined by adding the basic increase rate to the individual performance-based increase rate.
This year, the basic increase rate was set at 3.0%, and the performance increase rate at 2.1%. This is 1.0 percentage point higher than last year's rate (4.1%) and is twice the expected consumer price inflation rate this year (2.6%).
Initially, considering last year's difficult business performance, including a 15 trillion won loss in the semiconductor sector and labor cost burdens, it was expected that the increase would be limited to the inflation rate level, but it was ultimately decided to be in the 5% range.
The 5.1% is the average increase rate for all employees, with those receiving higher evaluations reportedly getting an average increase of over 7%, and especially high-performing entry-level employees receiving increases in the range of 8-10%.
A Samsung Electronics official said, "Following last year, the management environment remains challenging across all business areas due to ongoing global uncertainties, but considering employee morale, we decided on an increase rate in the 5% range."
Along with this, Samsung Electronics plans to strengthen maternity protection policies by expanding spouse paternity leave (15 days) from the previous two-time split usage to three-time split usage, and increasing infertility leave from 5 days to 6 days. The application period for reduced working hours during pregnancy (2 hours per day) will also be extended from within 12 weeks and after 36 weeks to within 12 weeks and after 32 weeks. Long-term service leave will be increased by an additional total of 10 days compared to before.
The labor-management council is a body where employer representatives representing the company and employee representatives representing workers participate to negotiate working conditions such as wages. Samsung Electronics has set wage increase rates annually through the labor-management council.
Meanwhile, the National Samsung Electronics Labor Union declared a breakdown in negotiations on the 18th and is currently conducting a workplace tour strike demanding a 6.5% wage increase and an additional paid leave day. The union has legally secured the right to strike following the Central Labor Relations Commission's decision to suspend mediation and is conducting a strike vote.
Samsung Electronics stated, "The channel for dialogue regarding wage negotiations with the union remains open, and if negotiations resume, we plan to engage sincerely."
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