A substitute holiday is a system that guarantees a weekday as a public holiday when a national holiday falls on a Saturday or Sunday. The holidays eligible for substitute holidays include Independence Movement Day (March 1st), Buddha's Birthday (lunar calendar, April 8th), Liberation Day (August 15th), National Foundation Day (October 3rd), Hangul Day (October 9th), and Christmas (December 25th). If holidays like Lunar New Year's Day and Chuseok also coincide with weekends, the holiday period is extended by one more day. Election days are also considered substitute holidays, but they are scheduled on Wednesdays to increase voter turnout.
Application of substitute holidays in workplaces:
The substitute holiday system has been applicable to workplaces with five or more employees since 2022. Workplaces with fewer than five employees are not eligible for substitute holidays.
Wages and allowances for substitute holidays: Applicable to Labor Day as well
Since substitute holidays are paid holidays, employees are entitled to receive wages. Therefore, even if employees do not work on substitute holidays, they should still receive their wages. If employees work on substitute holidays, they should be provided with additional holiday overtime pay. The same applies to Labor Day on May 1st.
Salaried workers:
For salaried workers, the wages already include the payment for substitute holidays, so there is no additional payment. The holiday overtime pay is usually 1.5 times the regular wage for up to 8 hours. If the working hours exceed 8 hours, it should be paid at a rate of 2 times the regular wage.
Calculation of wages and allowances for salaried workers working on substitute holidays:
- Wages: No additional payment
- Overtime pay for up to 8 hours: Regular wage X 1.5 X hours
- Overtime pay for hours exceeding 8 hours: Regular wage X 2.0 X hours
Hourly and daily wage workers:
For hourly or daily wage workers, they should receive payment equivalent to one day's wage for working on substitute holidays. Additionally, the holiday overtime pay should be 2.5 times the regular wage for up to 8 hours. If the working hours exceed 8 hours, it should be paid at a rate of 3 times the regular wage.
Calculation of wages and allowances for hourly and daily wage workers working on substitute holidays:
- Wages: Payment of daily wage
- Overtime pay for up to 8 hours: Regular wage X 2.5 X hours
- Overtime pay for hours exceeding 8 hours: Regular wage X 3.0 X hours
Inevitable work on substitute holidays: Utilizing the prior-substitution system
If work on substitute holidays is unavoidable, the prior-substitution system can be used. Instead of working on the substitute holiday, the employee takes a different weekday off. In this case, the employer does not need to provide holiday overtime pay for substitute holidays. However, the employer must notify the employee at least 24 hours in advance and obtain mutual agreement. Even if the employee takes a day off on a different weekday using the prior-substitution system, the employer must still pay wages. If the employer provides work on substitute holidays without prior notification, they should provide holiday overtime pay.
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