Notices

A recent survey found that seven out of ten employees believe the inclusive wage system (pogwal imgeumje) should be banned. Meanwhile, three out of ten employees reported that they were not properly compensated for overtime, holiday work, and night work.

According to an online survey commissioned by Workplace Gapjil 119 and conducted by the polling agency Global Research from September 1 to September 7, 2026, among 1,000 employees aged 19 and older nationwide, 71.7% of respondents said the inclusive wage system should be prohibited. In contrast, 28.3% expressed support for the system.

The survey also revealed that approximately three out of ten employees were not properly compensated for additional hours worked. Specifically, 30.7% (307 respondents) reported that they did not receive overtime, holiday work, or night work allowances corresponding to the actual hours they had worked. When these 307 respondents were asked how their additional working hours were compensated, the most common response was through the inclusive wage system (38.4%), followed by the nonpayment of overtime allowances as an established workplace practice (20.2%) and the payment of additional wages calculated based on working hours but subject to a predetermined payment ceiling (19.9%). The inclusive wage system was more prevalent among regular employees (43.8%) than non-regular employees (29.2%), and among office workers (44.6%) than non-office workers (30.9%).

The same 307 respondents were also asked whether they received additional overtime pay when their actual overtime hours exceeded the number of overtime hours predetermined under the inclusive wage system. Only 8.5% reported receiving such additional compensation. Under Korean labor law, even where an inclusive wage arrangement is implemented, employers are required to pay additional allowances when employees work beyond the overtime hours covered by the predetermined wage arrangement. Furthermore, 38.8% of respondents reported working more overtime hours than those specified in their wage arrangements, compared with 28.3% who stated that they worked only the predetermined number of overtime hours. This represents a difference of 10.5 percentage points.

Park Eun-ha, a certified labor attorney affiliated with Workplace Gapjil 119, commented:

“This survey demonstrates that the inclusive wage system is undermining employees' right to fair compensation for overtime work and contributing to the widespread practice of unpaid overtime.”

She further stated:

“To fundamentally prevent the misuse and abuse of the inclusive wage system, the system should, in principle, be prohibited, and a clear legal framework should be established requiring wages to be calculated and paid based on actual working hours.”

Park also emphasized the importance of strengthening employers' obligations to record working hours accurately and pay wages accordingly.

She added:

“Labor inspections and penalties for violations should be strengthened to ensure that employees can effectively exercise their legal rights to claim wages and overtime compensation to which they are entitled.”

Reporter: Eom Jae-hee Published: November 2, 2026, 6:30 a.m. Email: eom@labortoday.co.kr

Source: Maeil Labor News (매일노동뉴스) Website: https://www.labortoday.co.kr