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Samsung Electronics, union reach tentative wage deal for 5.1 percent pay hike

Published: 24 Feb. 2025, 17:42

Samsung Electronics office building in Seocho District, southern Seoul [NEWS1]

Samsung Electronics and its labor union on Monday reached a tentative wage agreement, which includes an average 5.1 percent pay raise for 2025, officials said.

The deal comes after 48 days of negotiations, which began on Jan. 7.

Under the agreement, employees will receive a 3 percent increase in base salary and a 2.1 percent increase in bonuses, along with 30 treasury shares each, according to officials.

The two sides also agreed to form a joint task force to improve the bonus system, with updates shared every six months.

The deal is subject to union ratification, on which it will likely vote before next Wednesday.

Samsung Electronics and the National Samsung Electronics Union (NSEU), the tech giant's biggest labor union, failed to reach a wage deal throughout last year. The NSEU represents some 36,000 workers, or about 30 percent of the company's total work force.

In response to stalled negotiations, the NSEU staged the first strike in Samsung Electronics' history last year.

“We will focus on strengthening our business competitiveness by using this wage agreement as an opportunity for labor-management harmony,” an official from Samsung Electronics said.

Yonhap