Table of Contents
- What is the proper way to receive your salary?
- The Four Key Principles of Wage Payment
- Real-World Issues Through Violation Cases
- Checkpoints for Employment Contracts and Pay Slips
- Final Summary
1. What is the proper way to receive your salary?
Many workers think, "As long as I get paid on time, it's fine."
However, how, by whom, how much, and when the salary is paid is also very important.
These payment methods are not just company policies, but are clearly stipulated in the Labor Standards Act.
These are the "Four Key Principles of Wage Payment."
2. The Four Key Principles of Wage Payment
The Ministry of Employment and Labor and the Labor Standards Act define four essential principles that must be followed when paying wages.
① Payment in Currency
Wages must, in principle, be paid in cash (legal tender).
Only with the worker's consent can wages be transferred via bank account or other methods.
💡 Paying in kind (gift certificates, goods) violates this principle.
② Direct Payment
Wages must be paid directly to the worker.
To pay wages to a parent, spouse, or representative, written consent from the worker is required.
💡 Transferring wages to a family member’s account without permission can cause legal issues.
③ Full Payment
Employers must pay the full amount of wages the worker has earned.
Only legally authorized deductions are allowed.
Exceptions: Income tax, four major insurance premiums, and union dues with consent may be deducted.
④ Regular Payment
Wages must be paid regularly on a fixed date.
For example, the 25th of each month or the last day of the month, and the date cannot be arbitrarily changed.
💡 Delayed payments beyond the wage date may be considered "payment delay."
3. Real-World Issues Through Violation Cases
- Case 1: A convenience store pays part of an employee’s wage in Choco Pies → Violation of the currency payment principle
- Case 2: Salary transferred to a family member’s account → Violation of the direct payment principle
- Case 3: Wage paid more than two weeks after the scheduled date → Violation of the regular payment principle
- Case 4: 50,000 KRW deducted from wages as a penalty without prior consent → Violation of the full payment principle
Such violations may lead to criminal penalties or fines, and workers may file complaints with the Labor Office.
4. Checkpoints for Employment Contracts and Pay Slips
To check whether wage payment principles are being followed, review the following items.
| Item | Checkpoints |
| Employment Contract | Are the salary payment date and method clearly stated? |
| Pay Slip | Are the actual payment and deduction items clearly shown? |
| Payment Method | Is it paid in cash or by bank transfer with worker consent? |
| Payment Schedule | Is payday observed regularly? |
5. Final Summary
The four key principles of wage payment—"When, how, to whom, and how much"—are not just formalities, but essential protections of workers’ rights.
Even if you're used to getting paid regularly, if there's a problem with how it's paid, you must be able to assert your rights.
Review your contracts and pay slips carefully, and seek help from the Ministry of Employment and Labor if anything seems unfair.
