The Korean government will introduce a “fair allowance” system for short-term contract workers in the public sector, aiming to reduce inequality and improve job stability.

The policy targets workers employed for less than one year, a group often affected by repeated short-term contracts designed to avoid long-term benefits. Under the new system, workers will receive additional compensation based on the length of their contract.

The shorter the contract period, the higher the compensation rate. For example, workers on one- to two-month contracts may receive up to 10% extra pay, while longer contracts will receive slightly lower rates.

This approach reflects the higher job insecurity faced by short-term workers. Government data shows that workers employed for less than a year earn less and receive fewer benefits than regular employees, even in similar roles.

In addition to the allowance, the government plans to restrict contracts under one year in principle. Exceptions will require prior review, and permanent roles are expected to be filled with regular employees.

Authorities also aim to encourage full-time hiring by increasing the cost of short-term employment and may consider expanding the system to the private sector in the future.

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