(EDITORIAL from Korea JoongAng Daily on April 29)

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(EDITORIAL from Korea JoongAng Daily on April 29)

'Fair allowance' for temporary workers falls short of structural reform

The government has decided to introduce a "fair allowance" for temporary workers -- with contracts of less than one year -- in the public sector starting from next year. The payment, framed as a form of severance compensation, follows instructions from President Lee Jae Myung in December 2025 to raise pay for nonregular workers facing job insecurity to gradually bring it closer to that of regular employees.

Relevant ministries, including the Ministry of Employment and Labor and the Ministry of Finance and Economy, formed a task force late last year to review conditions for nonregular workers in the public sector. After conducting a survey, they presented the plan at a Cabinet meeting. The measure expands a policy first introduced in 2021, when Lee, then governor of Gyeonggi, implemented a similar allowance for temporary workers in the province.

According to the survey, approximately 73,000 temporary workers in the public sector last year —- roughly half of the total -- had contracts shorter than one year. Their average monthly wage stood at 2.8 million won ($1,900), lower than the overall average of 2.89 million won. Temporary workers were also less likely than regular employees to receive benefits such as welfare points, meal allowances and holiday bonuses.

While the goal of reducing discrimination against nonregular workers and encouraging the public sector to act as a model employer is broadly supported, several concerns remain.

First, questions persist about fiscal planning. It is unclear whether the task force, formed quickly in response to the presidential directive, sufficiently deliberated the matter. In Gyeonggi, the annual budget for the allowance was 3.1 billion won for 2,300 workers. Applying a similar scheme nationwide —- accounting for more than 70,000 eligible workers and a higher compensation rate —- would multiply costs many times over.

Additional plans to guarantee wages at 118 percent of the minimum wage would further increase the burden.

Second, there is concern that extending the policy to the private sector through legislative changes could reduce nonregular employment opportunities. In France, where a similar system was introduced, the share of temporary employment increased rather than declined.

Third, while the allowance may provide short-term relief, it is unlikely to address the structural root of the problem. Without reforming entrenched wage systems and the strong position of regular workers' unions, making significant improvements in working conditions for temporary workers will remain difficult.

Beyond financial support, policymakers may need to focus more on measures that enhance skills and employability. Market-oriented approaches that expand opportunities for stable employment could offer a more sustainable solution than compensation alone.

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