배움과 공유의 시간

01 Wage management

Wage management is one of the most difficult areas for Korean companies to come to China. This is because with a Korean mindset and wage management, they fail to provide performance-based discrimination or face a barrier to maintaining work tension through incentives or pay cuts. It needs to be deeply agonized over how to take the wage structure under a management situation where labor contracts are prolonged, life-saving and the business environment is rapidly changing, and how to establish a wage system.

1. Wage formats and calculation standards

(1) Time calculation wage system (計時工资)

The time-calculated wage system is a form of labor remuneration that is calculated and paid according to the length of working hours of workers. The time-calculated wage system measures the amount of labor to the direct duration of labor. The criteria for the time-calculated wage system are determined based on the level of proficiency and job importance of workers.
It is pointed out that although it is the most commonly used method, it is difficult to accurately reflect the quality and quantity of labor in labor remuneration. Part-time wages generally apply to management personnel who are difficult to directly quantify labor performance, or to jobs where quality is more important than quantity of products.

Status of implementation of time calculation wage system
In China, the time-calculated wage system is generally implemented on the basis of the monthly wage system, combining monthly wages, daily wages and time wages. For example, if a worker works overtime, he or she pays wages according to the monthly wage standard, and if he is absent or works overtime, he or she deducts wages based on day wages and time wages, and pays monthly wages.
January wage system: a system usually called the monthly wage system, and which pays wages on a monthly basis. Pay the full monthly wage standard when working without work, but pay the full amount according to the number of days and hours of absence from work.
2 日 日 Wage and Time Wage System: Wage system that calculates and pays based on workers' Japan, 時wage standard, actual working days and time, the daily wage system is applied to the full-day system, and the hourly wage system is mainly applied to non-day employment.

Number of legal wage calculation days = 21.75
"21.75" is the statutory monthly wage calculation date. The 11th day of the annual statutory holiday is a "pay holiday" in which wages are paid even without going to work, so it is divided evenly into 12 months, in addition to the actual average number of working days (20.83), excluding legal holidays.
* 11th of the legal holiday ÷ 12 months ≈ 0.92,20.83+0.92=21.75
Wage calculation days are used extensively in calculating overtime costs and calculating the wage deduction for the number of days absent.

Wage calculation standard and actual working hours standard
What's special about
legal wages
Calculation
Base monthly wage calculation days:
(365 days - 104 days a week)주일12 months =21.75 days
1 Daily wage: Monthly wage ÷ Monthly wage calculation days (21.75)
2 Hourly: ÷ Monthly wage calculation days x 8 hours per year 11 days of legal holiday are "paid holidays", so the company pays normal wages on legal holidays.
do.
actual labor
time
1 年 Labour days: 365 days to 104 days (rest days)
- 11 days (Judges holidays) = 250 days
2 分期 Labor days: 250 days ÷ 4 quarters = 62.5 days/quarter
3 月 Labour days: 250 days ÷12 months = 200.83 days/months
* Labor hours = Labor days x 8 hours legal holidays are paid holidays, 年 Labour days are deducted from 11 days of legal holidays.
Calculation
[Relevant Laws] "Notifications on the issue of monthly average working hours and wage calculations for workers annually" (From [2008]3)

How to calculate attendance wages
When calculating monthly wages, the actual number of working days will vary from month to month if the work day is less than one month due to the employee's employment in the month, retirement, private leave, sick leave, and absence without leave, and the actual number of working days will vary from month to month.
[Form 1] Date of attendance > 11th
Wage = Monthly base wage - monthly base wage .75 21.75 x (workdays-work days)
[Form 2] Number of days to work
Wage = Monthly wage - base wage ÷ 21.75 x number of days to work
(Note) 11 days is half the legal wage calculation date of 21.75, and depending on whether the number of employee attendance days in the month is greater than or less than 11 days, different calculation formulas are applied, allowing a fair wage calculation. If only one formula is used, there is a possibility of negative wages occurring.

Case of calculation of attendance wage

(1) Calculation of attendance wages
If the base monthly wage is 2,175元, 23 days of service, December 2014 and 1 day of private leave
(error) [formal 2] is applied, not even on the first day of vacation, but more than the standard wage.
December 2014 Wage = 21.75 21 21.75 x 22 days = 2,200 > Monthly Base Wage 2,175元
(Accurate) [Form 1] Application
December 2014 Wage = 2,175元 - 2,175 ÷ 21.75 x (23-22) = 2,075元
February basic wage of 2,175 days, December 2014 23 days of work, after only one day of work, retired
(error) [formal 1] Application
December 2014 Wage = 2,175元 - 2,175 ÷ 21.75 x (23-1) = - 25元
(Accurate) [Form 2] applies
December 2014 Wage = 21.75 ÷ 21.75 x 1 day = 100元
(2) Calculating the monthly wage for a legal holiday
In China, a weekend break day (Tuesday, Sunday) is "free," but a legal holiday is "paid." Therefore, if there is a legal holiday in the month, the number of normal working days shall be calculated.
[Example] Monthly wage of 2,175; October 2014 Labor Day holiday (October 1-7) After the end, October
9th. Retirement. 3rd day of work (Oct. 1, 2, 3rd) +2 days (Oct. 8, 9th) = 5 days
[Form 2] Applicable: October 2014 Wage = 21.75 21 21.75 x 5 days = 500元

(2) Production number wage system (计件工资)

The production number wage system is a wage type that is calculated and paid by applying the production number unit price prescribed in advance for the passed products produced by the workers. Many factories in China employ these wage models, a system that improves labor productivity by linking labor performance with labor compensation and ensures higher-functional public figures earn more by spreading imported cars among public figures.
In addition, the benefits include reducing management risks and accurately calculating labor cost coasters for unit products because it can reduce the pressure on the company’s labor costs during times when there are not many orders to produce. It is pointed out that the disadvantage is that the pursuit of only the quantity of the product can cause quality and safety problems, and the facility's management.

Terms and conditions of implementation of the production wage system
ᄋ Correctly calculate the quantity of products and accurately reflect the labor input made by workers
ᄋ It is easy to inspect the quality of products, there are clear quality standards, and strict quality inspection
the practicability of a system
ᄋ Establish advanced and reasonable production standards and efficient statistical systems
ᄋ Production order quantity is always exceeded, and raw materials are supplied normally
ᄋ Management system has reached a certain level

Types of production number wage system

1 Unlimited direct production number wage system
Based on the actual finished product within the standard time (8 hours) as the most common form.
The method is to pay wages by applying unified work unit prices without restrictions on the ceiling.
* Wage per actual acquired production count = quantity of products passed x unit price

[Case]
a unit price of 1元, working standard of 8 hours per day Regulations stipulate the labor standard of 50 per day
(1) Within standard working hours (8 hours)
• 60 successful products completed in 8 hours: 60 earned daily wage= 60 x 1元 = 30元
• Completed 40 passes in 10 hours: 40 earned daily wage= 40 x 1元 = 30元
(2) Extra overtime (extended two hours’ working hours to fill an order)
• Complete 50 standard hours + 12 overtime hours
• Under the circumstances when the work schedule was completed, the company ordered overtime work outside the legal work hours.
Due to this, extra work must be paid
• 50 x 1元 + 12 x 1 1x 150% = 68 68
(Note) Labor reference quantity (or pass-through) means that the criteria for the quantity of finished (or accepted) products produced at a given time of work are predetermined or the time to produce a certain quantity of finished (or accepted) goods are prescribed in advance.

2 progressive production number wage system
This method is applied by increasing the unit price of the work for the parts that are over-produced after achieving the standard labor standard within the standard time. The difficulty of exceeding labor standards or of increasing production is high.
When this approach is applied to an item, the effect is high. However, in this case, reasonable labor standards should be established and accurate pre-calculations of economic efficiency are required. This is because if the labor standard is set low and the excess production calculation is high, the manufacturing course can increase rapidly and have a negative impact on economic efficiency.
[Reform] Actual acquisition production count wage = (part X general work unit price within labor standard) + (overrun)
Production part X progressive work unit price)

[Example] 50 work-days standard in a factory, 1 작업 work unit price, 1-10% overcompletion
1.1元, over-completion 10-20% 1.2元, over-completion 20%, 1.3 元, total 62 production
* Actual acquisition production wage = (50 x 1元) + (5x1.1) + (5x1.2) + (2x1.3) = 64.1元

3 Production number wage system for excess production
Also referred to as the split production number wage system. When a public official completes the work standard, he/she shall pay the monthly standard wage, and if he/she produces excess, he/she shall pay the overtime pay according to the prescribed work unit price. However, if the labor standard is not completed, the corresponding salary shall be paid.
[Formation] Actual acquisition production count wage = monthly wage acquired within the labor standard plus overtime production cost

[Example] Monthly wage. 250 labor standards. Working unit price 3元. 280 actual finished volumes
* Actual acquisition production count wage = 800 + 30 x 3 = 890元

4 Collective production number wage system
Production count wages calculated according to the production completed jointly by the work force. The production allowance received jointly within the work group is reasonably distributed to the members of the staff. This method is especially applicable to items or processes that are collectively completed through inter-employee collaboration in mechanical facilities or production processes.

5 Sales-Rated Wage System
Incentive wage schemes refer to wage schemes that receive a certain percentage of a firm's sales income or net profit. This format works where it is difficult to determine the unit price by quantifying labor performance in advance using the labor standard method. This approach can ensure employee activism by linking the employee's wage income to the sales or profit situation of the company directly. Currently, it is mainly used in the service, distribution and catering industries.
ᄋIncentives for excess of fixed amount: a fixed wage in the form of basic wages, and a fixed amount of sales or profits
Set the target amount and pay incentive wages at a certain rate for over-referenced
* Employee income = base wage + base excess income x incentive ratio
ᄋ Full incentive: No basic wage, employee income paid in conjunction with profit or sales income
* Employee income = Profit or Sales revenue x Incentive ratio

Precautions for implementing the production number wage system

1 A reasonable labor standard determination is required. Labor standards should be the standard that the majority of workers can reach normally.
2 Extra work expenses shall be paid when working outside the normal working hours. If the labor standard is completed during normal working hours and additional work is carried out, the overtime cost shall be increased to 150 per cent on weekdays, 200 per cent on weekends, and 300 per cent on legal holidays. In practice, overtime is likely to escalate into a lawsuit when overtime prices are not applied in such a way that they do not leave a record of absenteeism and because of the record of attendance at weekend overtime.
The minimum monthly wage should be guaranteed, even if it is a production wage system.

2. Minimum wage system

Minimum wage refers to the minimum labor remuneration paid by the company if workers provide normal labor. In the event of a violation of the minimum wage, the worker may file a complaint with the Bureau of Labor to demand a net payment of the minimum wage, deem it an act of unfair labor, and may immediately terminate the labor contract and demand the payment of economic compensation to the enterprise (article 38 of the Labor Agreement Act).

items not included in minimum wage

The following remuneration paid to workers is not included in the minimum wage (Article 12 of the Minimum Wage Regulations).

1 National Common (valid for all regions)
(a) overtime expenses;
(b) allowance paid under special labor conditions, such as night work, high temperature, low temperature, mine, toxic hazards, etc.
(c) the welfare of workers, as defined by law and the State; and
- Comply with benefits such as social insurance premiums and kitchen public funds that companies should pay
- Hygiene costs, tidal charges, homelike leave, solvents' allowance, winter heating allowance, summer high temperature allowance, etc.
(d) non-monetary meals and housing costs provided in kind;

2 Applies to specific regions only (valid for the region only)
Beijing and Shanghai exclude social insurance and kitchen public funds paid by individuals from the minimum wage. Therefore, the real minimum wage in Beijing and Shanghai is more than 300 won higher than in other provinces. In case of Kang So-sung, social insurance premiums for personal payments are included, but the individual onerous kitchen bills are excluded from the minimum wage.
Therefore, in the case of Beijing and Shanghai, the "hereinafter minimum wage + employee paid social insurance premium and kitchen public allowance" should be set at the in-house minimum wage so that the employee's misorder amount is higher than the current minimum wage. In the case of Kang So-sung, the setting needs to be set at "here’s minimum wage + kitchen public funds paid by employees." Other areas include social insurance and kitchen utilities.

Without local minimum wage
Social insurance, kitchen, public money, etc.
Injury personal burden personal burden meal allowance, commuting allowance, housing allowance
Beijing personal burden -
Rigid - Personal Burden -

Excluding the application of the minimum wage
The minimum wage system applies only to workers who provide normal labor. therefore normal
home-stay workers, sick workers, or private vacations that do not provide labor.
If (请假) is acquired and normal labor is not provided, the minimum wage system shall not apply.