Rising everyday costs outpace wages, pressuring salaried workers

Baik Seung-ki, a salaried worker in his 40s, says his monthly income has risen steadily over the past couple of years, but the amount left for spending is growing at a slower pace after covering his basic living costs. “I guess it’s because of unavoidable costs like taxes, social insurance, utilities and staple foods are rising faster than my income, shrinking the money I have available for savings or other discretionary spending,” he said. Baik’s view aligns with the data released by the Federation of Korean Industries (FKI) Thursday, which shows that fixed baseline expenses outpaced wage growth from 2020 to 2025, adding to the financial strain on so-called "glass-wallet workers." In Korea, “glass-wallet workers” are salaried employees whose income is fully transparent to the government and subject to payroll tax deductions, unlike self-employed individuals or business owners. During this period, average monthly wages rose at an annual rate of 3.3 percent, from 3.52 million won ($2,380) to 4.15 million won. By contrast, earned income tax and social insurance contributions dedWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times