A survey has discovered that manufacturing employee wages in South Korea are greater than 20% greater than these in Japan and Taiwan.
The Korea Enterprises Federation introduced these findings on Dec. 23 in its Korea-Japan-Taiwan Wage Standing Worldwide Comparability and Implications report, which was compiled primarily based on annual whole wages of staff in Korea, Japan, and Taiwan as of final 12 months.
In keeping with the report, the annual whole wage (excluding time beyond regulation pay) for normal staff at institutions with 10 or extra staff in South Korea was $65,267 (96.84 million gained) final 12 months primarily based on buying energy parity change charges, which was 23.7% greater than Japan’s common normal staff ($52,782). Primarily based on market change charges, Korea recorded $37,611 and Japan $32,501, exhibiting a 15% distinction. In 2011, the annual whole wages of South Korea and Japan have been $39,702 and $39,329 respectively, at comparable ranges, however whereas Korea’s wages elevated by 64.4%, Japan’s wages rose by solely 34.2%, widening the hole.
The wage hole between Korea and Japan was larger within the giant enterprise sector than in small and medium enterprises. South Korean giant enterprise wages have been $96,258, which was 58.9% greater than Japan’s ($60,574), whereas small and medium enterprise wages have been $55,138, which was 21.9% greater than Japan’s ($45,218). Giant enterprises have been outlined as these with 500 or extra staff in Korea and 1,000 or extra in Japan, whereas small and medium enterprises coated these with 10-99 staff in each nations.
By trade, amongst 11 comparable industries, our wages have been greater than Japan’s in 10 industries excluding training providers. The gaps have been notably giant in finance and insurance coverage (161.8% in comparison with Japan), skilled, scientific and technical providers (130.1%), and manufacturing (127.8%).
In comparison with Taiwan, primarily based on buying energy parity change charges, South Korean wage staff’ annual whole wages (together with time beyond regulation pay) final 12 months have been $62,305, which was 16.2% greater than Taiwan’s ($53,605). By market change charges, South Korea recorded $35,904 and Taiwan $22,796, with a niche reaching 57.5%. Whereas South Korean wages have been 5.1% greater than Taiwan’s in 2011, the hole widened as South Korea’s wages elevated by 70.8% and Taiwan’s by 54.4%.
Amongst 17 comparable industries, our wages have been greater than Taiwan’s in 14 industries, with notable gaps in training providers (183.5% in comparison with Taiwan), water provide, sewerage and waste administration (160.3%), {and professional}, scientific and technical providers (143.3%). Taiwan had greater wages in actual property (96.4%), lodging and meals providers (96.2%), and well being and social welfare (81.2%). In manufacturing, the primary trade for each nations, South Korean staff’ annual whole wages have been $72,623, which was 25.9% greater than Taiwan’s ($57,664).
Ha Sang-woo, director of the Financial Analysis Division on the Korea Enterprises Federation, identified that “the wage stage hole between our nation and main rivals Japan and Taiwan is increasing,” and “a high-wage construction not supported by productiveness is unsustainable, making it pressing to enhance productiveness and transition to a job and performance-based wage system.” Director Ha stated, “In a scenario the place our corporations are already beneath appreciable labor value stress, insurance policies that might deepen twin buildings and worsen youth employment, comparable to extending the authorized retirement age, should be approached extra cautiously.”
