LG Electronics (066570.KS) will introduce a system to rehire employees who have reached the mandatory retirement age, following an agreement between labor and management. The company's average wage increase for this year has been set at 4%.
LG Electronics announced on the 1st that it signed this year's wage and collective bargaining agreement with its labor union, notifying employees through internal announcements and organizational briefings.
The centerpiece of the agreement is a "post-retirement rehiring" system to be fully implemented starting next year. Employees with specialized expertise and skilled technical capabilities may continue working for up to one year beyond the mandatory retirement age, based on a comprehensive review of factors including their willingness and health conditions. The system applies to both office and technical workers without distinction. The measure is seen as an effort to actively leverage the extensive experience and know-how of veteran employees, as the importance of skilled labor grows across the industry.
The average wage increase for this year was set at 4%. For office workers, the final raise is determined by combining a short-term performance-based increase (0% to 8%) based on the previous year's performance evaluation with a long-term performance-based increase reflecting evaluations from the preceding four years.
"This is aimed at strengthening compensation for office workers who consistently deliver results, in line with our merit-based principles," an LG Electronics official said. "We have been operating a wage increase system that comprehensively considers both short-term and long-term performance since 2022."
Employee welfare programs to support maternity protection and work-life balance have been significantly enhanced. Leave for infertility treatment has been extended from three months to a maximum of six months. Labor and management also agreed to expand prenatal checkup leave for pregnant employees from a half day to a full day.
