Following a last-minute deal yesterday between Samsung Electronics and its South Korean workers’ union, the company will reportedly distribute 40 trillion won ($26.6 million) in bonuses to chip employees. According to a Bloomberg report, the bonus, which will vary by employee, will result in an average payout of 513 million won (~$339,000) per employee in Samsung’s semiconductor division, based on proposed terms and projected 2026 operating profits. Other estimates put the figure at around 600 million won (~$396,000).
As part of the tentative deal — which narrowly averted a strike originally scheduled to begin May 21st — Samsung has reportedly agreed to distribute 10.5% of its profits as employee bonuses in the form of stock, plus another 1.5% in cash. The union initially requested 15%. Addressing another major union demand, the new bonus program will continue for 10 years — rather than a one-off payment — provided specified profit targets are met.
