ED Dwindling real wages
Workers bear growing burden of income tax, social insuranceThe amount of money Korean companies paid to workers, including wages, grew by 28.1 percent over the past decade. In contrast, income taxes and social insurance fees that businesses and employees paid to the government shot up by 52.1 percent in the same period. Accordingly, after taxes, workers' real income rose by only 21.8 percent, the Korea Economic Research Institute (KERI) said Wednesday, based on its analysis of wages at companies hiring 300 or more workers between 2010 and 2020.During the cited period, businesses' average monthly payment per worker amounted to 4.49 million won ($3,830). However, an average worker received only 3.57 million won after deducting 670,000 won as social insurance fees and 250,000 won as income taxes. The gap is due to increase more quickly, as wage gains are outpaced by the rises in income tax, national pension, health and employment insurance fees. The gulf between corporate payment and real income is likely to widen in years to come. Although the government keeps delaying pension reforms,
Aug 19, 2021