South Korea removes daily overtime cap for public officials, allowing pay for all hours worked

South Korea is set to remove the daily cap on overtime work for public officials, meaning they will be compensated for all hours worked beyond their standard schedule. This change, part of a revision to the 'Regulations on Public Officials' Allowances,' aims to ensure fair compensation for actual work performed.

Currently, public officials can only claim overtime pay for up to four hours per day, even if they work longer. The revised regulations, announced by the Ministry of Personnel and Management and the Ministry of the Interior and Safety, will eliminate this daily limit. However, the existing monthly cap of 57 hours for overtime pay will be maintained.

This reform follows a directive from President Lee Jae-myung in April, who called for overtime work to be recognized and compensated based on actual hours logged, while also addressing formalistic overtime practices. For instance, an official working from 9 AM to midnight would currently be compensated for only four hours of overtime. Under the new system, after excluding the first hour (which is not compensated), the remaining five hours would be eligible for pay.

Furthermore, the existing limits of 8 hours per day and 100 hours per month for overtime work during emergencies will also be abolished. The government cited recent situations, such as responses to Middle Eastern tensions, where some officials in the Ministry of Trade, Industry and Energy worked an average of over 130 hours per month, highlighting the necessity of such a change.

A new 'overtime compensation allowance' will be introduced for national civil servants at Grade 4 and below (excluding section chiefs). This allowance will be paid for overtime exceeding 25 hours per month, provided the official has been pre-designated by their department head. The regulations also strengthen penalties for improper receipt of overtime pay, lowering the threshold for mandatory disciplinary action from KRW 1 million to KRW 500,000 in improperly received amounts. The system will also enhance verification of actual work through the electronic personnel management system, requiring officials to log their work hours periodically. The revised regulations are expected to take effect on October 1st, following a public notice period ending on July 31st.