With August 17 designated as a substitute holiday, there is growing interest in the criteria for holiday work pay.
According to the Labor Standards Act, businesses with five or more regular employees are required to treat substitute holidays as legally mandated paid holidays. Therefore, employees who work on the substitute holiday of August 17 will receive additional pay for holiday work in addition to their regular wages.
The key factor in calculating this pay is the number of hours worked. For shifts of up to eight hours, employees are entitled to 150% of their regular wage (1.5 times). For any hours worked beyond eight, the pay increases to 200% (2 times) of the regular wage.
For salaried employees, the basic monthly salary already includes compensation for paid holidays, so additional pay for actual hours worked (0.5 to 1 times) and regular compensation (1 time) is added. In contrast, hourly or daily wage workers, including part-timers, should receive a total amount equivalent to 250% of their normal hourly wage, which includes the paid holiday pay (100%), wages for hours worked (100%), and holiday premium pay (50%).
However, it is important to note that the 1.5 times pay does not apply to all businesses. For establishments with fewer than five regular employees, there is no legal obligation under the Labor Standards Act to provide holiday premium pay. Therefore, if employees work on a substitute holiday, they may only receive their basic wage (1 time) without any additional pay.
Additionally, it is essential to verify whether the company has legally implemented a 'holiday substitution' system. If a written agreement has been made with employee representatives to designate another weekday as a paid holiday instead of the substitute holiday, working on August 17 will be considered a regular weekday, and no separate holiday premium pay will be applicable.
Labor experts advise that employees should understand their workplace size, wage structure, and whether their company has a holiday substitution agreement before working on a substitute holiday to avoid issues such as wage disputes.
* This article has been translated by AI.
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