10% of Operating Profit Allocated to Performance Bonuses
80% Paid Immediately, 20% Deferred Over Two Years
New System to Be Applied for 10 Years
Expected to Enhance Compensation Stability and Talent Acquisition
After more than three months of negotiations, labor and management at SK Hynix have reached a tentative agreement that includes reforms to the wage and performance bonus (PS) systems. The key points of the agreement are a 6% wage increase and the removal of the cap on performance bonuses.
According to industry sources on September 1, the SK Hynix union representing regular and production workers finalized the "2025 Wage Negotiation Tentative Agreement" that morning and held explanatory sessions for union members at the Icheon and Cheongju campuses in the afternoon.
Under the tentative agreement, the cap on PS payments (previously up to 1,000% of base salary) will be abolished, and 10% of annual operating profit will be allocated as the performance bonus pool each year. Of the calculated amount, 80% will be paid in the current year, while the remaining 20% will be distributed over the following two years. This new system will be applied for the next 10 years.
The PS is an incentive paid once a year based on company performance, and previously it was capped at up to 50% of annual salary. The current reform is interpreted as an effort to reduce internal conflict and improve predictability. The company expects that strengthening compensation competitiveness will help secure top talent and provide greater capacity for investment as the business grows.
Previously, in May, the union began negotiations demanding an 8.25% wage increase, a higher salary cap, and the removal of the PS cap. However, after 11 rounds of negotiations failed to produce an agreement, the union held its first-ever all-out protest rally since the company’s founding.
The company explained that it collected various opinions during the negotiation process to establish a sustainable performance bonus system. The new standards are expected to improve compensation stability during downturns and expand rewards for high performers.
The agreement between labor and management also includes a 6% wage increase. The final decision will be confirmed within this week after a vote by union members.
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