The labor productivity has risen by 1.5 percent by introducing shorter 40-hour workweek system in the manufacturing sector, a report by the Korea Development Institute showed.

The report noted that it was imperative to clarify murky rules on working hours and pay increment, suggesting raising the basic pay for regular work hours and lessening the extra pay for extended work hours to ultimately raise work efficiency.

Under the current laws, maximum working hours per week is set at 52 hours, which include eight daily working hours and 12 hours available for extended work.

The Labor Ministry, however, allows a total of 16 additional working hours during weekends, by excluding weekends from workday counts, thereby allowing a maximum of 68 working hours per week. The current administration is working to shorten the 68 hours to 52 hours.