Samsung Electronics and its labor union reached a provisional agreement to establish a new special performance bonus for the company's semiconductor business [1].
The deal aims to resolve persistent disputes over bonus caps and the allocation of performance-based pay. By formalizing a special compensation system, the company seeks to stabilize labor relations within its critical chip-making divisions [1, 2].
Under the new terms, the semiconductor special performance bonus will be funded by 10.5% of business performance [1]. When combined with the existing excess-profit bonus, the total performance-based pay can reach approximately 12% of business performance [2]. Notably, the agreement removes the previous upper cap on these bonuses [2].
The distribution of the total bonus pool is split between different sectors of the business. The memory division will receive 60% of the funds, while the remaining 40% will be allocated to the rest of the semiconductor business [1].
Certain provisions apply to units that are not currently profitable. For deficit-making divisions, the bonus will be paid at 60% of the common rate [2]. Additionally, the payout for these specific units will be deferred for one year [2].
Yeo Myeong-gu, head of the People Team for the Samsung Electronics DS division, said the provisional agreement allowed the company to concretely institutionalize the special compensation system [1].
Choi Seung-ho, chairman of the Samsung Electronics labor union, said there had been differences in opinion regarding the existing system, but the company agreed to defer the distribution method for deficit-making business units for one year [1].
“The total performance-based pay can reach approximately 12% of business performance.”
This agreement signals a strategic shift by Samsung to retain top engineering talent amid fierce global competition in the semiconductor industry. By removing the bonus cap and linking pay directly to business performance, Samsung is moving toward a high-incentive model common in the U.S. tech sector. The tiered distribution between memory and non-memory divisions reflects the current profit disparities within the company's chip business.
