High-Salaried Workers Jump 7.6 Fold
By Lee Hyo-sik
Staff Reporter
The number of high-income salaried workers earning over 80 million won ($88,000) per year has increased 7.6-fold over the past 10 years, while employees receiving below 10 million won dropped 36 percent, the Ministry of Finance and Economy said.
The data point to improving income status for the country's salaried workers. At the same time, the number of self-employed making over 80 million won has jumped 2.6 times during the same period.
The number of salaried employees making over 80 million won in taxable income totaled 53,000 in 2005, up from 7,000 in 1996. Those collecting between 40 million won and 80 million won in yearly salaries rose five-fold to 261,000 from 50,000.
``Despite rising consumer prices for the past 10 years, a growth in salaries have led to better living conditions and increased purchasing power for the majority of wage earners,'' a ministry official said.
Salary earners of less than 10 million won per year fell to 3.4 million from 5.3 million over the same period.
Workers pay income taxes based on their earnings. Under the country's income tax codes, those who earn over 80 million won per annum pay 35 percent of their income as taxes. Employees making between 40 million won and 80 million won pay 26 percent, while those earning between 10 million won and 40 million won pay 17 percent. Workers making less than 10 million won pay 8 percent of their income as taxes.
The number of the self-employed making over 80 million won per year reached 90,000 in 2005, up from 35,000 10 years ago. Mom-and-pop business runners earning between 40 million won and 80 million won increased to 130,000 from 69,000 over the same period.