Banks to Pay Up to 350% Performance Bonuses... Agreement Reached on 4.9-Day Workweek

Commercial Banks Raise Wages by Over 3% on Record Earnings
Voluntary Retirements Rise Amid Digital Transformation and Expansion of Non-Face-to-Face Banking

Major commercial banks plan to increase wages by more than 3% this year and provide performance bonuses of up to 350% of the base salary. In particular, starting this year, they also intend to introduce a '4.9-day workweek,' which shortens working hours by one hour on Fridays.

According to the financial sector on February 2, among the five major commercial banks (KB Kookmin, NH Nonghyup, Shinhan, Woori, and Hana), Shinhan, Hana, and Nonghyup Bank have concluded their 2025 wage and collective bargaining agreements, reaching consensus on these terms.

At Shinhan Bank, the wage increase rate has been set at 3.1% for general, professional, management support, and management-exclusive positions, and 3.3% for retail service (RS) and clerical staff. The performance bonus is set at 350% of the base salary. Additionally, 1 million points in Naver Pay, which is equivalent to cash, will be provided separately.

Hana Bank has agreed to a 3.1% wage increase, a 280% performance bonus, and a cash payment of 2 million won. Nonghyup Bank has also agreed to a 3.1% wage increase and a 200% performance bonus.

Major commercial banks plan to increase wages by over 3% this year and pay performance bonuses up to 350% of the base salary. The photo shows ATMs of commercial banks installed on a street in Seoul. Photo by Seoul Reporter

The compensation levels at the five major commercial banks, which are expected to have posted record results last year, have generally improved compared to the previous year's wage negotiations (which saw a 2.8% increase for general positions).

Working hours will also be reduced. Labor and management at Shinhan, Hana, and Nonghyup Bank have all agreed to introduce a 4.9-day workweek, reducing working hours by one hour on Fridays. The same provision is included in the tentative agreement at KB Kookmin Bank. Although the specific implementation method has not yet been finalized, it is highly likely that the Friday closing time will be moved forward from 6 p.m. to 5 p.m.

The trend of restructuring within the banking sector continues. This is interpreted as a result of increased labor costs, digital transformation (AX), and the expansion of non-face-to-face financial services. From the end of last year to the beginning of this year, 2,364 employees at the five major banks opted for voluntary retirement, a slight increase compared to the same period of the previous year (2,324 employees).

KB Kookmin, Shinhan, Hana, and Woori Bank provided voluntary retirement compensation of up to 31 months' salary depending on years of service, while Nonghyup Bank offered up to 28 months' salary. Including basic severance pay, the average amount received per retiree is estimated to be between 400 million and 500 million won, with some receiving close to 1 billion won.

This content was produced with the assistance of AI translation services.