Samsung To Implement 10-Minute Overtime Pay Next Month

Samsung Electronics will pay its employees for overtime work in 10-minute increments starting next month as part of the changes the company is implementing to please the South Korean government under the tutelage of Moon Jae-in.

Nikkei Asian Review reported Monday that Samsung is changing its overtime pay policy this coming July. Instead of the usual two-hour increments, the tech giant will now pay its employees for every 10 minutes that they spend on extended work after their shift.

The new policy coincides with the lowering of the national cap on working hours from 68 to 52 hours per week under the revised labor standards law of South Korea. Samsung is also allowing its employees to have more flexibility in setting their working schedules henceforth.

Starting next month, employees in Samsung’s semiconductor and display operations will benefit from the new overtime policy. Apple’s biggest rival is expected to expand the implementation of the policy in other areas, especially those focused in building smartphones.

The current policy requires Samsung to only pay between $10 and $20 for every two hours of overtime work. The extra compensation is being referred to by the company as “transportation expenses.” With the new policy, employees will get extra compensation for every 10 minutes of overtime work. Moreover, they will be paid 50 percent more for hours worked after 10 p.m.

Given that Samsung is a leader in the South Korean business sector, it’s very likely for other firms to follow its lead and implement the same changes. This means the entire business community in its home country could soon adopt the 10-minute overtime pay policy.

Aside from the benefit of earning more for their hard work, Samsung’s new policy could also eliminate the issue of employees finishing their extra work in an hour and staying for the next hour just to qualify for overtime pay.

Meanwhile, there are also concerns stemming from the newly announced policy. Some are worried that this new rule could create a number of issues for employees, considering that 52 hours is the legal limit of allowable working hours starting next month. Employees could end up working from home to finish their extra work without getting paid for it.