Public Sector Non-Regular Worker Treatment Improvement Begins... Ministry of Employment and Labor Launches Research Projects

Three Research Projects Commissioned, Including Wage Information Survey
Inter-ministerial Consultations to Follow Completion Between June and August
Fiscal Burden from Wage Reform Remains a Challenge

The Ministry of Employment and Labor has officially begun efforts to improve the treatment of non-regular workers in the public sector and to reform the wage system. Following President Lee Jaemyung's directive to ensure "appropriate wages," the government plans to review the overall employment and wage structure in the public sector and establish a policy foundation that can lead to institutional improvements. However, if wage increases for non-regular workers are realized, the government is also expected to face the challenges of increased fiscal burden and changes in the employment structure of public institutions.

According to government ministries on the 22nd, the Ministry of Employment and Labor recently commissioned three consecutive research projects: "Survey on Employment and Wage Information in the Public Sector," "Research on the Development of a Wage System Model for the Public Sector," and "Research on Improving the Management Evaluation System of Public Institutions to Enhance the Treatment of Non-Regular Workers." These projects are follow-up measures to President Lee's remarks at the Cabinet meeting on the 9th, where he emphasized the need for appropriate wages for non-regular workers, stating that "it is immoral for public institutions to routinely pay only the minimum wage."

First, the "Survey on Employment and Wage Information in the Public Sector" focuses on conducting a comprehensive investigation into the employment types, wage levels, and overall working conditions of non-regular workers in the public sector. The survey is likely to include not only fixed-term workers but also permanent contract workers and outsourced personnel. The aim is to broadly examine wages, working hours, contract periods, and even the status of welfare benefits. Through this survey, the Ministry of Employment and Labor plans to objectively identify the wage gap and differences in treatment between regular and non-regular workers, and use the data as a basis for future discussions on the principle of "equal pay for work of equal value" or the appropriate wage system. The survey is scheduled to begin in the first quarter of this year and be completed within the first half.

The "Research on the Development of a Wage System Model for the Public Sector" is intended to design a standard wage system applicable to the public sector, based on the findings of the survey. The study will analyze wage levels and working hour structures by job and employment type among public sector workers, compare domestic and international examples of public sector wage systems, and conduct in-depth field research. The goal is not simply to propose wage increases, but to develop a rational compensation model that reflects job value, employment stability, and working conditions. This research is expected to provide an institutional basis for raising the compensation of non-regular workers, which currently remains at the "minimum wage compliance" level, to an appropriate level comparable to that of regular workers. The research period runs until August.

The "Research on Improving the Management Evaluation System of Public Institutions to Enhance the Treatment of Non-Regular Workers" focuses on revising the management evaluation system for public institutions. It will reassess whether the labor-related items in the current management evaluation system effectively promote improvements in the treatment of non-regular workers, and examine whether the evaluation criteria and scoring should be adjusted. The rationale is that if efforts to improve wage levels or working conditions for non-regular workers are more directly reflected in management evaluations, public institutions will have a greater incentive to pursue such improvements. This project also aims to be completed by the end of June.

In summary, the government's core objective is to institutionalize the payment of "appropriate wages" to non-regular workers in the public sector. The plan is to establish objective criteria for identifying the problems through the survey, design "how much and by what standards" to pay through the development of the wage system model, and then create "incentive mechanisms" to ensure the system actually works.

Some have pointed to the "Non-Regular Worker Fair Allowance" system as a likely policy model for improving treatment. This is a system President Lee introduced during his tenure as Governor of Gyeonggi Province. In 2021, Gyeonggi Province paid contract workers a compensation allowance proportional to employment instability upon contract expiration, ranging from 5% to 10% of the base salary, depending on the length of service. The Ministry of Employment and Labor is reportedly considering a comprehensive review of introducing such allowances or reforming the wage system to apply across the public sector, including these examples.

However, the limited fiscal burden remains a challenge. If wages for non-regular workers in the public sector are increased, significant fiscal expenditures will be unavoidable. Public institution wages are managed through the government's public institution budget management guidelines and the total labor cost system, raising concerns that wage system reform could lead to a reduction in the size of the workforce and trigger debates over fairness among institutions. A Ministry of Employment and Labor official stated, "Once the survey and other studies are completed, we plan to continue discussions with relevant ministries," adding, "However, we have not predetermined a specific direction such as the fair allowance system."