The South Korean government is set to establish a roadmap by the end of the year to institutionalize the principle of 'equal pay for equal work,' which mandates equal wages for labor of equal value, regardless of employment type or gender.
According to relevant authorities on October 18, the Ministry of Employment and Labor aims to announce the roadmap for achieving equal pay for equal work in December, gathering expert opinions in the process. The roadmap is expected to include measures such as legalizing the principle of equal pay for equal work, enhancing wage information provision, and promoting inter-company negotiations.
Labor Minister Kim Young-hoon reaffirmed his commitment to improving disparities in the labor market during a recent parliamentary audit. On October 13, during a National Assembly audit by the Climate, Energy, Environment, and Labor Committee, Democratic Party lawmaker Eo Gi-goo raised concerns about wage gaps between large and small enterprises, as well as between regular and non-regular workers.
In response, Minister Kim stated that improvements would be pursued based on a survey of the current situation, emphasizing the need for the principle of equal pay for equal work and fair allowances and appropriate wages. He also stressed his commitment to ensuring concrete changes in the treatment of public sector workers.
Previously, on August 12, Minister Kim mentioned in a National Assembly briefing that despite the principle of equal pay for equal work being important, its implementation has often faced challenges. He announced the establishment of a dedicated organization to address this issue, citing the need to analyze job roles and establish appropriate wage distributions regardless of the company.
The principle of equal pay for equal work asserts that workers should receive the same pay if their labor is of equal value, even if their tasks are not identical. The Ministry of Employment and Labor believes that expanding the application of related systems is necessary to reduce unreasonable wage disparities based on employment types, such as regular and non-regular workers.
Currently, the principle is outlined in the Equal Employment Opportunity and Work-Family Balance Support Act. The ministry is considering specifying this principle in the Labor Standards Act for broader application. The existing Equal Employment Opportunity Act defines criteria for determining equal value of labor based on skills, effort, responsibility, and working conditions required for job performance.
However, experts suggest that reforming the wage system is essential for the realization of this principle. Many domestic companies operate a seniority-based wage system, where pay increases with years of service rather than job value. This can lead to wage disparities even among workers performing the same tasks, depending on their tenure and employment type.
As one alternative, the ministry is reviewing the introduction of a job-based pay system that determines wages based on the nature, importance, and difficulty of the job. Additionally, it is exploring ways to provide wage distribution information based on job roles, positions, and years of service using national statistics.
Another challenge is promoting inter-company negotiations to align wage systems across industries. Expanding negotiations beyond individual companies to industry-wide discussions could help adjust wage standards for similar job roles.
However, there are significant differences in perspectives between labor and management. Labor representatives express concerns that transitioning to a job-based pay system could lead to wage cuts for existing workers, while management argues that applying uniform wages without considering individual performance and skill levels is impractical.
The Ministry of Employment and Labor plans to gather opinions from labor and management to clarify the direction for legislation and wage system reform. However, even if the roadmap is announced this year, substantial time will be needed for subsequent procedures, including legal amendments, labor-management consultations, and establishing job evaluation criteria, before actual changes to the wage system can occur.
* This article has been translated by AI.
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