“Even if you reduce it, it’s still a lot”… Bankers receive 500 million won in voluntary retirement benefits | Dong-A Ilbo

2024-01-20 01:50:00

Commercial banks decreased by 4-5 months compared to last year, but significantly exceeded the top 1%
The average severance pay is expected to be around 500 million won, but the number of voluntary retirees is decreasing due to lower conditions.

Bank employees leaving commercial banks this year are expected to receive an average of 500 million won in severance pay. Although it has been reduced by 4 to 5 months compared to last year, it is still well above the top 1% of workers’ severance pay.

According to financial institutions and companies on the 20th, commercial banks this year lowered the scale of voluntary severance pay and performance bonuses compared to the previous year. As a measure to reflect the financial authorities’ comments, the special severance pay for voluntary retirement was reduced by 4 to 5 months for each bank, from 24 to 36 months’ worth of average monthly wages last year to 24 to 31 months’ worth this year.

Performance bonus was reduced from 300% to 200%. The wage increase rate fell from 3% last year to 2% this year.

According to the ‘Status of compensation systems including performance bonuses of the five major banks’ compiled by the Financial Services Commission, the average total severance pay per person at the five major commercial banks, including KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup, is 540 million won as of 2022. all. Special severance pay of 360 million won in accordance with voluntary retirement and statutory basic severance pay of 180 million won in accordance with years of service were paid. Bank employees who left the bank received an average of 500 to 600 million won.

Their average annual salary exceeds 100 million won. Considering this year’s downward adjustment of 4-5 months of voluntary severance pay and wage increases due to rising prices, severance pay is expected to decrease to around 30 million won compared to last year. Even taking this into account, the average is expected to be around 500 million won.

The average severance pay per worker as of 2021, as compiled by the National Tax Service, is around 15.01 million won. The average severance pay of commercial bank employees (540 million won as of 2022) is a whopping 36 times more. The average severance pay of 33,045 workers in the top 1% is 407.44 million won, which is significantly more than 100 million won.

The number of retirees decreased compared to the previous year. It is interpreted that the voluntary retirement conditions, which were lowered compared to last year, had an impact. The number of voluntary retirees at Kookmin Bank decreased by 39, from 713 to 674 last year. Nonghyup Bank decreased by 121 people from 493 to 372.

Shinhan Bank decreased by 154 people, from 388 at the beginning of last year to 234 at the beginning of this year. Hana Bank and Woori Bank, which are finalizing the selection of retirees at the end of this month, are also expected to see a decrease compared to the previous year. Last year, 339 Hana Bank employees and 349 Woori Bank employees packed their bags.

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