📝 Guide · 2026-04-27
Annual-Salary Letter vs. Labor Contract — Differences & Drafting Guide (2026)
An annual-salary letter does NOT replace a labor contract. This guide explains the legal difference, 11 mandatory items for 2026, and frequently-omitted clauses.
A salary letter is NOT a labor contract
The most common misunderstanding — "I got a salary letter, so I got a labor contract, right?" Wrong.
| Aspect | Labor contract | Salary letter |
|---|---|---|
| Legal basis | Labor Standards Act §17 | None |
| Mandatory | Yes (₩5M fine if missing) | No |
| Items required | 11 mandatory | Wage only |
| Term | Open-ended unless stated | Usually 1 year |
The salary letter is just an attachment that updates the wage. The labor contract must be a separate document.
Mandatory 11 items (LSA §17)
- Wage composition / calculation / payment method
- Standard working hours
- Holidays / annual paid leave
- Workplace and job duties
- Contract term
- Pay date
- Workdays and hours per day (part-time only)
- Social-insurance application
- Fixed allowances (meals, transport)
- Probation/training period (if any)
- Confidentiality / non-compete (optional)
5 frequently-omitted clauses
- Inclusive-wage items & hours — without them the inclusive contract is likely void
- Probation wage rate — must pay 100% for contracts < 1 year; can pay 90% only for ≥ 1 year
- Separate severance line — "severance included in salary" is void
- Workplace-change clause — without it, employer can't unilaterally relocate
- Annual-leave promotion — if not run, unused leave must be paid out
5-minute pre-sign check
Use the Labor-Contract Self-Check to auto-flag the 11 items + 5 missing clauses. One red item = pause and renegotiate before signing.
What if you only got a salary letter
- Demand a labor contract — required by LSA §17
- If refused, file a complaint at the Labor Office (1350)
- Failure to issue triggers ≤ ₩5M fine on the employer
FAQ
- Q. Is "90% probation pay for 6 months" lawful? → Yes if total contract is ≥ 1 year. Otherwise 100% must be paid.
- Q. "Severance included in salary" — valid? → No. Severance must be separately calculated and paid.
- Q. I received it a week after starting — too late? → LSA requires it "at start of work." Late issuance is allowed but not issuing at all triggers a fine.
Bottom line
Keep the labor contract and salary letter separate. The labor contract is the skeleton of your rights; the salary letter is just an annual update. If anything is missing, renegotiate before signing.