S. Korea has greater income gap than 24 European countries: report
SEOUL-- South Korea has a greater income gap at workplaces than 24 European countries, a local think tank said Tuesday.
The Korea Economic Research Institute (KERI) said the average salary earned by Korean workers with a career of 20-29 years in a company was 4.04 times higher than the average wage made by their junior colleagues with a career of less than one year.
The result was in sharp contrast with a 1.56 times difference between the two groups in 24 European states, such as Germany, Spain, Britain and the Netherlands, according to the report.
"As one out of two Korean companies still employs the step-based salary system instead of the performance-based system, the income gap between entry-level workers and decades-old seniors remains deep," the report said.
Under the salary step system, employees with the same number of working years usually receive the same level of salary regardless of their performances and contributions to the company.
South Korea, meanwhile, again beat 24 European states in terms of wages provided to male and female workers. The income gap between genders in South Korea was the highest at 1.58 times, followed by 1.42 times in Estonia, 1.37 times in Britain and 1.34 times in the Czech Republic, it said.
KERI said its report is based on job data provided by the countries checked.
Source: Yonhap News Agency