Match the compensation definition and effective date. A larger target package does not necessarily increase guaranteed monthly pay.
Define what is increasing
This is an arithmetic comparison, not a claim that the law guarantees an annual raise. Collect both compensation breakdowns, bonus conditions, effective date and payslips. Compare fixed monthly pay, guaranteed separate payments, variable targets, one-off benefits and the months covered. Check whether fixed overtime hours also change.
Worked example: target package rises while fixed pay does not
| Item | Current | Offer |
|---|---|---|
| Monthly fixed gross pay | KRW 4m | KRW 4m |
| Annual fixed gross pay | KRW 48m | KRW 48m |
| Variable target award | None separately | KRW 2.4m |
| Target package | KRW 48m | KRW 50.4m |
Example · Calculate both percentages
- Target increase: (50.4m − 48m) ÷ 48m × 100 = 5%.
- Monthly fixed-pay increase: (4m − 4m) ÷ 4m × 100 = 0%.
- The target award depends on its conditions and is not a guaranteed KRW 2.4m bank transfer.
Annualized increase versus first-year increase
Example · Fixed pay rises from KRW 4m to 4.2m on July 1
- Annualized new fixed pay: 4.2m × 12 = KRW 50.4m, a 5% increase over KRW 48m.
- That calendar year: 4m × 6 + 4.2m × 6 = KRW 49.2m.
- First-year increase: KRW 1.2m, or 2.5% of the prior annual amount.
- A retroactive January effective date or a mid-month change needs a separate arrears or proration calculation.
Keep gross increases separate from take-home pay
Insurance bases, reconciliations, withholding settings and tax-free treatment affect the net increase. A changed work schedule or expanded fixed overtime allowance also changes the comparison. The sample payslip explains categories; it does not establish your personal net raise.
Questions before signing
“Does 5% refer to monthly fixed pay or target total compensation? Please itemize basic pay, allowances, fixed overtime hours, guaranteed and variable bonuses, effective date, retroactive adjustment and the first payslip affected.” Confirm the written change and compare guaranteed, conditional and one-off money separately. Figures are hypothetical reference examples, not legal or tax advice.