Salary scheme in the civil service

• The salary scheme in the civil service is largely classified into a salary based on pay grades and an annual salary. An annual salary is further classified into a fixed annual salary, a performance-based annual salary, and a job and performance-based annual salary.
• A salary based on pay grades, in which a civil servant’s salary (base salary) is determined by his or her pay grade, is a seniority-based compensation scheme. During annual promotions, civil servants have their pay grades promoted. The salary schedule according to this pay grade scheme differs by job types. Payments consist of a salary, various types of allowances, and in particular, a performance-based bonus, which was introduced to the scheme to promote competitiveness in the civil service and provide motivation for civil servants by rewarding them for outstanding work performance and other achievements.
• Since the seniority-based scheme valued equity over fairness of compensation, concerns were raised that individual competence, achievements, contributions as well as organizational performance are not sufficiently considered in determination of remuneration and the scheme provides little motivation for the civil service. For this reason, in 1999, the government introduced an annual salary, a simpler and more flexible performance (merit)-based compensation scheme, to promote competitiveness and productivity in the civil service, build a creative and hard-working environment, attract more competent professionals from the private sector, and ensure transparency of the remuneration scheme.
• An annual salary is classified into a fixed annual salary, a performance-based annual salary, and a job and performance-based annual salary. A fixed annual salary provides an annual salary fixed according to each position and is paid to civil servants in political service of vice minister-level or above, whose work performance cannot be quantified easily compared to those in general service. Civil servants subject to this salary scheme receive family allowances, class benefits, fixed meal benefits, etc. in addition to a salary according to relevant laws.
• A performance-based annual salary is paid to civil servants of Grade 5 or above (or equivalent) in general or special government service, etc. and contract-based civil servants. Payments consist of a base salary fixed according to each grade and a performance-based salary. This salary is paid up to the limit set by each grade. Civil servants subject to this salary scheme receive family allowances, overtime allowances, compensation for unused annual leave, fixed meal benefits, allowances for stationing in specific areas, allowances for special duties, etc. in addition to a salary.
• A job and performance-based annual salary, paid to members of the Senior Civil Service, has a pay structure similar to that of the performance-based annual salary scheme. The key difference is that a base salary is further classified into standard pay and job pay and a performance-based salary accounts for a higher share than a base salary in total payments.