FDI – EU Companies in Korea (Focus in Germany Enterprise ) Salary Survey Korea 2015

FDI – EU Companies in Korea (Focus in Germany Enterprise )

Salary Survey Korea 2015

Aticl Edit : 2016-3-31 / edit@gceonews.org

Key findings of the Salary Survey 2015:

• Salary - Businesses in 2015 facing a minor decrease of salaries while increasing bonuses for most positions.

- In 2015, employees further enjoy a wide range of benefits at companies.

The most applicable ones being further training and education, lunch allowances, and expenditure for congratulations and condolences.

- Salary spreads between junior and senior staff is still low.

New junior staff is being paid fairly similar salaries across departments (sales, technical, executive assistant).

Key findings of the Salary Survey 2015:

• Statistical Sample - 21 businesses have participated in the survey 2015.

- Most respondents are in the machinery and equipment sector (33.33%), followed by respondents from the automotive and parts industry(28.57%) as well as chemical/pharmaceuticals(23.8%).

- A majority of 52.38% of the participating companies were employing 6 to 50 people, while companies with 51 to 300 staff had a share of 33.33%. Only one of the participating companies had 6 or less employees, and two had more than 300 employees.

Salaries/Benefits per Position

Head of Organization

• Salary -Annual salaries of Heads of Organization range from 90 to 330 Mil. KRW, whilst the average in 2015 is at 181.05 (186.37 in 2014) million KRW.

-The average bonus actually paid in 2014 to this year’s heads of organization amounted to 48.53 (65.68 in 2013) million KRW.

-The planned increase of annual basic salary (bonus excluded) for 2015 range from 0% to 7% with an average of 3.61%.

Salaries/Benefits per Position

Head of Organization

• Benefits

A clear majority of the participating companies (58%) stated that they offer car allowance for their Heads of Organization.

95% indicated that they cover expenditures for congratulations, 50% offered additional health insurance and 76% further training and education.

Salaries/Benefits per Position

Management

• Salary - Annual salaries of positions in management range from 57.7 to 171 million KRW, with an average of 108.26 (113.25 in 2014) million KRW in 2015.

The planned increase of annual basic salary (bonus excluded) for 2015 range from 2% to 5% with an average of 4.3%.

- The average bonus, which the surveyed managers received in 2014, was 21.36 (18.78 in 2013) million KRW, ranging from 10.8 to 47 million KRW per manager.

Salaries/Benefits per Position

Management

• Benefits -A vast 95% of participating companies support their managers with allowances for mobile phones, and another 95% indicated that managers receive further training and education, expenditure for congratulations and/or lunch allowances respectively.

-60% of managers are entitled to a company car, while only 29% can apply for housing loans.

Salary changes in 2015

Changes in Salary Payments

• Heads of organization enjoy the salary increases ranging from 0% to 7% with an average of 3.61%.

• Most of the increases were somewhere between 2% and 4%.

• For positions in management, all but four participating companies responded.

• Of these, the vast majority of 75% will get a salary raise between 2%-5% in 2015.

• No company stated a decrease of salary for a managerial position in 2014.

Salary changes in 2015

Changes in Bonus Payments

• In general, bonus payments increased more than salaries in 2014.

• The positions of head of organizations were lower than average with a 26.11% decrease for the head of organization.

• On the other hand, all other positions can expect a raise.

• The management enjoys a 13.74% increase of bonus payment since 2013

Benefits apportionment

• Benefits for additional medical check-up range from 200,000 Won

– 2 million Won per employee per year. However, the average amounts to 427.000 Won. Provided to all employees by 50% of the submitting companies.

25% companies provided this only to some employees.

25% of participating companies employees don’t enjoy this benefit.

• Life insurance benefits range from 200.000 – 500.000 Won with an average of 287.500 Won. Provided to all employees by 54.5% of the submitting companies. 45.5% of were not providing this benefit.