State Owned Corporations to Raise Wage by up to 6 Percent Next Year.

The next year`s pay increase rate of the employees at thirteen state owned corporations, including the Korea Electric Power Corporation will be determined at less than 6 percent, and the quota will be held to the same as that of this year.

The Ministry of Planning and Budget finalized at the state owned corporation steering committee held yesterday the guideline of the budget compilation, which includes a plan to increase the next year`s personnel expenses by less than 6 percent, and delivered it to each corporation.

According to the guideline, a concrete plan to increase the payroll will be determined independently by each state owned corporation, but the basic wage should stay at this year`s level. In addition, the amount of each corporation`s contribution to the in-house labor welfare fund will be restricted to less than 5 percent of the net profit before taxation, and the contribution cannot be made when the corporation marks a net loss. To contribute to the welfare fund based upon unrealized profits will be banned as well.

The Ministry of Planning and Budget suggested to cut down the ordinary expenses as much as possible and to increase the investment operation expenses in order to invigorate economy. The increase rate of ordinary expenses should remain within 3 percent of this year`s budget.

The Ministry of Planning and Budget also suggested to make and carry forward a plan for early execution of quarterly budget. In general, state owned corporations have appropriated the budget far little early in the year and exhausted it at the end.

iam@donga.com