Definition of “Ordinary Wage” in Korea: Korean Employment & Labor Law Basics

The courts of the Republic of Korea, for years, has struggled to find a consistent interpretation of an “Ordinary Wage.”  The definition of Ordinary Wage, under Korean Law, was clarified by the Korean Supreme Court in two decisions handed down on December 18, 2013.  The calculation of Ordinary Wages is important, since it is utilized to calculate statutory entitlements, and thus has an impact on the aggregate amount of contributions necessary to be paid to employees. For example, according to Article 56 of the Korean Labor Standards Act, an employer must pay 50% of the Ordinary Wage plus the Ordinary Wage for overtime, night and weekend work performed by the employee. Because of the potential for a large unknown future liability, this issue became the most significant issue, in the last few years, among domestic and foreign employers in labor and employment law in Korea. The basic Korean test is

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English-Speaking Korean Labor & Employment Lawyers in Korea

This Korean Law Blog is brought to you by English-speaking Korean labor lawyers & employment lawyers working for IPG Legal – an international law firm with offices in Korea.  Sean is the author of this blog and English-speaking Korean lawyers contribute to the blog.  Please find below a few of the most recent matters we have worked on. Leading rating services have rated IPG attorneys as leading lawyers working in Korea and throughout Asia. To learn more, please drop us an email or give us a call. IPG’s Korean Labor & Employment Law Team Experience Drafted Korean employment agreements, employee handbooks, employment rules and formed a pension and corporate compliance system for a NASDAQ-listed company with a subsidiary in Korea. Oversaw a leading manufacturer’s reduction of 5% of the headcount in China and Korea.  Prevailed in cases of foreign employees of Korean companies who were wrongfully dismissed from these Korean conglomerates. 

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