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(LEAD) Merit pay guidelines in store for financial circle

All News 11:03 January 29, 2016

(ATTN: ADDS labor union's comments in last 3 paras)

SEOUL, Jan. 29 (Yonhap) -- The country's financial authorities plan to map out a set of guidelines on the implementation of a performance-based wage system at state financial entities in line with the government's push to boost efficiency, officials said Friday.

The government decided Thursday to get all public agencies to adopt a merit-based payment system by the end of next year as part of its labor reforms. Currently, only executive members of public institutions are subject to such a system.

Under the merit pay system, employees will be paid differently based on their achievements, with the difference in their annual salary expanding to an average of 3 percent from the current 2 percent.

"We will draw up a separate set of guidelines to reflect specific features of the financial circle," said an official of the Financial Services Commission (FSC). "It is due out next week."

The new guidelines will be adopted at state-run financial institutions, another FSC official said, noting that eight public institutions are now under the arm of the FSC, including the Korea Asset Management Corp. and the Korea Deposit Insurance Corp.

The authorities' drive to expand the merit-based system, however, drew instant opposition from labor circles.

"The government should not intervene in and control the wage system which is supposed to be decided voluntarily via dialogue between labor and management," the Korea Financial Industry Union said in a release.

"We will launch all-out efforts to quell such an extralegal wage control maneuver," it stressed.


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