Probationary Period Pay in Korea: How Much Can Your Wage Be Cut?

Probationary Period Pay: How Much Can It Be Reduced?

When you hear "3-month probation" after starting a new job, your first concern is usually your paycheck. It is not uncommon for employers to significantly cut wages citing the probationary period — so knowing whether this is legal and where the limit lies is essential to protecting yourself from unfair treatment.

Note: Your employment contract may specify terms different from the statutory minimum. Always check your contract alongside the legal standards below.

Legal Basis and Limit for Probationary Wage Reductions

Article 5(2) of the Minimum Wage Act (최저임금법 제5조 제2항) permits a 10% reduction of the minimum wage for workers on probation. However, the following conditions must all be met:

• Period: Applies only within the first 3 months from the start of probation
• Contract duration: The labor contract must be for 1 year or longer
• Occupation restriction: Workers in simple labor occupations (Korean Standard Classification of Occupations, major category 9) cannot have their wages reduced

The 2026 minimum hourly wage is 10,320 won. With the probationary reduction applied, the minimum hourly wage becomes 9,288 won (10,320 won × 90%). On a monthly basis (based on 209 hours), the statutory minimum monthly wage during probation is approximately 1,941,192 won.

Cases Where Wage Reduction Is Absolutely Prohibited

In the following two situations, 100% of the minimum wage must be paid even during probation:

1. Fixed-term workers on contracts of less than 1 year: Cutting wages on the grounds of probation for short-term contract workers is a clear violation of the Minimum Wage Act.
2. Simple labor occupations: Workers engaged in simple, repetitive tasks — such as cleaners, delivery workers, and parking attendants — are excluded from the probationary reduction due to the nature of their work.

What Happens After 3 Months of Probation?

The reduction allowance is valid only for the first 3 months after probation begins. From the 4th month onward, 100% of the minimum wage must be paid even if the worker is still formally on probation. Many workplaces miss this cutoff and fall into violation — workers should track this date themselves.

Four Major Social Insurances and Weekly Holiday Allowance During Probation

Probationary status has no bearing on the obligation to enroll in the four major social insurances. From the very first day a labor contract is formed, enrollment in the National Pension (국민연금), Health Insurance (건강보험), Employment Insurance (고용보험), and Industrial Accident Compensation Insurance (산재보험) is mandatory. The same applies to weekly holiday allowance (주휴수당): if a worker works 15 or more hours per week and is present on all scheduled workdays, weekly holiday allowance accrues even during probation. It is calculated based on the reduced hourly rate of 9,288 won.

Can a Worker Be Dismissed During Probation?

Even during the probationary period, dismissal restrictions under the Labor Standards Act (근로기준법) apply in principle once a labor contract has been formed. However, the Supreme Court has recognized a somewhat relaxed standard for dismissing probationary workers compared to regular employees (Supreme Court Decision 2006da42683 / 대법원 2006다42683). That said, if the probationary period has exceeded 3 months, the employer is obligated to give 30 days' advance notice or pay an advance notice allowance (해고예고수당) upon dismissal.

Practical Checklist

• Confirm that your employment contract clearly states the probationary period and pay conditions.
• If your contract is for less than 1 year, any probationary wage reduction is illegal.
• If your pay does not increase from the 4th month of probation onward, you may file a complaint with the Ministry of Employment and Labor (고용노동부).
• In the event of unpaid wages, a delay interest rate of 20% per annum applies under Article 17 of the Enforcement Decree of the Labor Standards Act (근로기준법 시행령 제17조).

If you want to calculate whether your probationary pay is appropriate, try the salary take-home pay calculator at workbear.kr (재주넘는곰). It automatically calculates deductions for all four social insurances so you can see your actual take-home pay at a glance. If you have concerns about your employment contract, the contract review feature is also available.

This article is for informational purposes only and does not constitute legal advice. For specific cases, consult a certified labor attorney (노무사) or lawyer.