North Korea raised wages for office workers, laborers and teachers at least tenfold in Oct. 2023, marking the first major wage adjustment since economic reforms were implemented on July 1, 2002.
One of the main outcomes of this substantial wage increase has been improved attendance at companies. However, many North Koreans are confused by significant discrepancies in wages between various companies, and the higher wages aren’t always paid monthly as expected.
A source in Pyongyang told Daily NK recently that the North Korean Cabinet implemented a major salary increase at organizations and enterprises through Resolution 23101-9 in October 2023.
The resolution mandated higher legal wages for workers while giving organizations flexibility regarding the amount of the increase and how to fund it.
Companies have been gradually implementing raises since the Cabinet adopted the resolution, with larger companies reportedly leading the way. The wage increases reportedly began at key munitions plants in Jagang and North Pyongan provinces and major companies such as the Kim Chaek Iron and Steel Works and the Songjin Steel Mill.
According to multiple sources inside North Korea, new workers at some regional companies have seen their wages jump from 1,500 North Korean won to over 30,000 won—a twentyfold increase. Mid-level managers, who previously earned 5,000–7,000 won before October 2023, have seen their wages soar to 80,000–120,000 won.
At the level of company general managers or party secretaries, monthly wages reportedly start at 150,000 won.
High school teachers who previously received around 2,000 won monthly are now reportedly earning 120,000 won. Teachers’ raises vary based on rank and seniority, but on average, their wages increased more rapidly than other occupations because they were so low to begin with.
Officials at party organizations also enjoyed steep salary increases. Mid-level officials at municipal and county party committees saw wages rise from 7,000–8,000 won before October 2023 to 180,000–220,000 won today.
Some large companies provided employees with a “competition prize” bonus at the end of last year. These companies organized output-boosting competitions, with high-performing employees receiving larger bonuses. Prizes at large steel mills reportedly reached hundreds of thousands or even millions of won.
Rather than implementing uniform wage increases across the board, North Korean organizations and enterprises have been adjusting the amount and timing of raises according to their budgets. Consequently, the impact of the wage hikes varies by industry and region.
“Some companies paid higher wages for five or six months and then stopped paying them or recalculated one month’s wages as covering two months,” the source said.
This inconsistency stems from the fact that finance departments at North Korea’s state-run organizations and enterprises don’t receive state funding for wages but must generate the funds themselves.
As a result, companies are diversifying their income sources to raise funds needed for wages. Party and government organizations have started organizing field trips and educational programs for the public, donating the proceeds to companies.
However, such approaches aren’t necessarily sustainable, and companies are struggling to maintain payments of the higher wages.
March 07, 2025 at 10:25AM
by DailyNK(North Korean Media)