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Employers behind on Payroll to Face Stronger Economic Sanctions

Written: 2023-05-03 14:18:04Updated: 2023-05-03 14:34:15

Employers behind on Payroll to Face Stronger Economic Sanctions

Photo : KBS News

Economic sanctions will be reinforced against employers who fail to pay delayed wages for over three months.

The labor ministry plan to eradicate habitual overdue wage payments that was announced on Wednesday will apply to those who have delayed remittance for more than three months over a one-year period or are in excess of 30 million won in arrears.

Restrictions on central or local government subsidies will apply, along with disadvantages when seeking loans.

Meanwhile, the government will expand the eligibility and scope of loans to assist employers in settling delayed wages, raising the limit from the current 100 million to 150 million won while doubling the repayment period.

Last year, the total amount of delayed wages reached one-point-three trillion won, or nearly one billion U.S. dollars, affecting over 240-thousand workers.

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