Kia Motors management and labor have agreed to include holiday bonuses and summer vacation allowances in the base salary calculation.
According to industry sources on September 24, Kia's management and labor have agreed to apply the Lunar New Year and Chuseok holiday bonuses (1.1 million won each), summer vacation allowance (800,000 won), and 28 types of allowances for engineers and technical staff as part of the base salary. This agreement was reached separately from the ongoing wage negotiations.
Since the base salary serves as the basis for calculating various allowances and severance pay, the company is expected to face increased labor costs. According to the union, up to 17.4 million won per person will be newly included in the base salary.
The agreement also stipulates that the expansion of the base salary will be retroactively applied from December 19 of last year, when the Supreme Court ruling was issued. Previously, the Supreme Court ruled that conditional regular bonuses, paid based on employment status or a minimum number of working days, must also be included in the base salary.
Hyundai Motor Company’s management and labor also reached an agreement this year during wage and collective bargaining negotiations to include holiday support payments, summer vacation allowances, and research efficiency improvement allowances in the base salary. As a result, Hyundai Motor Company is expected to incur an additional annual cost of over 230 billion won.
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