Skip to content
· ShifteePayOfficial

The 50% wage rule

Summary

Wages are basic pay, DA and retaining allowance. If the 11 excluded items, such as HRA, overtime and commission, add up to more than 50% of total pay, the excess is added back to wages.

Key points
  • It becomes the base for gratuity, PF and overtime
  • Performance-based annual incentives are not wages
What it means for Korean companiesA Korean-style pay structure heavy on allowances costs more if used as is.

More

Request a consultation

Just tell us your site, headcount and timing

We reply with the laws that apply and what to fix first. First consultation is free.

Phone+82-10-7641-4018
KakaoTalkceo_adlconsulting
Emailliminae@adullamcorp.com
AI

Ask AI

Common questions with sources. Our AI answers from the material we have prepared.

The 50% wage rule · Adullam HR & Legal