Special Payments at Large Enterprises Surge 12.8%, Outpacing Smaller Firms' 3.0% Increase

The average monthly total wage of regular workers (those with no employment contract period or contracts of one year or longer) in the first half of this year increased by 3.5% compared to the same period last year. The rate of increase expanded compared to the same period last year, 2.2%, with the primary cause analyzed as a significant increase in special payments, such as performance-based bonuses, mainly in large enterprises.

The Korea Enterprises Federation announced on the 21st a report titled 'Analysis of Wage Increase Status by Scale and Industry in the First Half of 2025' containing these findings. According to the report, the average monthly total wage (excluding overtime pay) in the first half of this year was 4,188,000 Korean won, a 3.5% increase compared to the first half of last year.

Compared to the 2.2% increase rate during the same period last year, this marked a rise of 1.3 percentage points. While the increase rate for fixed payments, such as base pay, was 2.9%, 0.6 percentage points lower than last year's rate, 3.5%, special payments, including performance-based bonuses, increased by 8.1%, driving the overall wage growth in the first half of this year.

By workplace size, the average monthly total wage at workplaces with 300 or more employees increased by 5.7% compared to the first half of last year, while those with fewer than 300 employees saw a 2.7% increase. Notably, special payments, including performance-based bonuses, rose by 12.8% at workplaces with 300 or more employees compared to the first half of last year, whereas those with fewer than 300 employees experienced only a 3.0% increase, resulting in a 9.8 percentage point gap in the increase rate between the two size categories.

In the industry analysis, the financial and insurance sector had the highest average monthly total wage among the 17 surveyed industries, with an average of 8,051,000 Korean won in the first half of this year. Conversely, the accommodation and food services sector had the lowest average monthly total wage at 2,635,000 Korean won, which is 32.7% of the financial and insurance sector's wage total.

Ha Sang-woo, head of the Economic Research Division at the Korea Enterprises Federation, stated, "The first half of this year saw high increases in special payments at large enterprises, which appear to have driven the overall wage growth rate." He added, "In a situation where external uncertainties, such as recent U.S. tariff policies, are increasing, excessive wage increase demands by some large enterprise unions could not only harm corporate sustainability but also lead to widening gaps in the labor market and deepening social conflicts, and thus should be avoided."

Large Firms' Bonuses Fuel 3.5% Wage Growth in First Half