🚨 4.5-Day Work Week: Work-Life Balance Innovation or Economic Burden?

Today Korean Social News | 2025.05.04

📌 4.5-Day Work Week Discussions Spreading...Mixed Reactions from Companies and Workers

💬 Recently, social discussions about implementing a 4.5-day work week have become active. Some large corporations and IT companies have already begun pilot programs, and it has gained attention as a labor reform policy in political circles. However, small businesses and self-employed individuals are expressing concerns about increased labor costs and reduced productivity, indicating that social consensus is needed.

Summary

• A 4.5-day work week means working Monday through Thursday for 8 hours each day, and only 4 hours on Friday morning.
• Positive effects are expected in work-life balance, productivity improvement, and consumption promotion.
• There are also challenges such as increased business costs and fairness issues across different industries.

1️⃣ Definition

4.5-day work week refers to a work arrangement where Friday afternoon is designated as time off from the traditional 5-day work week. Simply put, it means working 8 hours a day from Monday to Thursday as usual, and only 4 hours on Friday morning.

This is a compromise between a complete 4-day work week and the current 5-day system, considering both reduced working hours and minimizing the burden on businesses.

💡 Why is it important?

• As digital technology advances have improved labor productivity, discussions about reorganizing working hours have become active.
• After COVID-19, the spread of flexible and remote work has increased interest in new work arrangements.
• Social values emphasizing work-life balance have become more widespread.
• Reducing working hours has gained attention as a policy alternative to address low birth rates.

2️⃣ Characteristics and Issues of the 4.5-Day Work Week

📕 Main Characteristics

• The 4.5-day work week is one form of reducing working hours. It has the following characteristics:

  • Working hours are reduced from the current 40 hours per week (5 days × 8 hours) to 36 hours per week (4 days × 8 hours + 1 day × 4 hours).
  • Most designate Friday afternoon as time off, but companies and industries can choose different days or time periods.
  • Depending on wage preservation methods, it can be classified as either "4.5-day work week without wage reduction" or "proportional wage 4.5-day work week."
  • Based on enforcement methods, it can be classified as either "legally mandatory 4.5-day work week" or "company voluntary 4.5-day work week."

• There are various expected benefits from implementing a 4.5-day work week. The potential positive effects include:

  • First, improved work-life balance. Continuous rest time from Friday afternoon through the weekend provides more time for leisure, family, and self-development.
  • Second, worker satisfaction and productivity may increase. According to overseas cases, reduced working hours often lead to improved productivity through increased concentration and efficiency.
  • Third, consumption and tourism could be stimulated. Increased leisure time may lead to more spending in service sectors such as culture, tourism, and dining out.
  • Fourth, there could be job creation effects. The gaps created by reduced working hours might be filled with new personnel, increasing employment.
  • Fifth, it could contribute to solving low birth rate problems. Having more time to invest in family life might positively impact childbirth and childcare.

📕 Major Issues

• There are several issues with implementing a 4.5-day work week. The main concerns are:
  • First, the cost burden on businesses. If working hours decrease while wages remain the same, businesses face increased labor costs, which can be especially burdensome for small businesses and self-employed individuals.
  • Second, fairness issues across industries. The ease of implementation and impact of a 4.5-day work week may vary depending on the industry, such as manufacturing, service, or IT. Industries requiring 24-hour operation like healthcare, security, and transportation may find implementation particularly difficult.
  • Third, wage preservation is a contentious issue. There needs to be consensus on how to handle wage reductions due to shortened working hours, and how government or businesses will provide support.
  • Fourth, the impact on productivity and competitiveness is uncertain. Verification is needed on whether a 4.5-day work week will actually lead to productivity improvements and how it will affect national competitiveness.
  • Fifth, legal and institutional arrangements are necessary. Related laws and systems such as the Labor Standards Act, minimum wage system, and social insurance need to be adjusted.

Major Issues in Implementing a 4.5-Day Work Week

1. Business Burden: Concerns about increased labor costs for small businesses and self-employed individuals
2. Industry Differences: Differences in applicability and effects across industries and occupations
3. Wage Issues: Need for wage preservation measures when reducing working hours
4. Productivity Impact: Uncertainty about actual productivity and impact on national competitiveness
5. Institutional Challenges: Need to revise related laws such as the Labor Standards Act

3️⃣ Overseas Cases and Domestic Trends

✅ Working Hour Reduction Cases in Major Countries

• Various forms of working hour reductions have been attempted in several countries. Major cases include:

  • Spain has been conducting a 32-hour, 4-day work week pilot project since 2021. About 200 companies are participating by implementing a 4-day work week without wage reductions, with the government partially supporting transition costs.
  • Iceland conducted an experiment from 2015 to 2019 with 2,500 public sector workers, reducing weekly working hours from 40 hours to 35-36 hours. The results showed that productivity was maintained or improved, and worker well-being improved.
  • Some Japanese companies have introduced "Premium Friday," designating the last Friday afternoon of each month as time off, aiming to stimulate consumption through reduced working hours.
  • Germany's metal workers' union IG Metall agreed in 2018 to introduce a 28-hour work week, where wages decrease proportionally, but flexibility allows individuals to adjust their working hours according to personal choice.

• There are lessons to be learned from overseas cases. The main implications are:

  • First, a gradual approach is important. Most countries choose to verify effects through pilot projects before expanding.
  • Second, government support is necessary. Financial support, tax benefits, and other measures are being implemented alongside to alleviate the burden on companies from reduced working hours.
  • Third, customized approaches by industry and occupation are needed. Various working hour reduction models are being developed according to industry characteristics.
  • Fourth, improvements in work processes for productivity enhancement should accompany changes. Not just simple time reduction, but innovation in work methods should happen together.

✅ Domestic Implementation Status and Outlook

• Some domestic companies and institutions have already implemented a 4.5-day work week. Major cases include:

  • IT companies like Naver and Kakao are expanding flexible work arrangements, including autonomous attendance and remote work, creating environments close to a 4.5-day work week.
  • SK Group has introduced a "Work from Anywhere" system since 2021, expanding autonomy in work location and time.
  • Some public institutions are attempting to make working hours more flexible through "autonomous attendance" or "staggered working hours" systems.
  • Among small and medium-sized enterprises, industries centered on creativity like IT, design, and content are increasingly adopting 4.5-day work weeks or flexible working arrangements.

• Policy discussions related to implementing a 4.5-day work week are also active. Major trends include:

  • In political circles, candidates are emerging who present a 4.5-day work week as a campaign promise ahead of the next presidential election.
  • The government is considering work style innovation in response to labor environment changes due to digital transformation as part of "Korean New Deal 2.0."
  • Economic organizations emphasize respecting companies' autonomous choices and call for a cautious approach to legal mandates.
  • Labor circles advocate for reducing working hours without wage cuts and aim for an eventual 4-day work week, with the 4.5-day work week as an intermediate step.

4️⃣ Related Terms Explanation

🔎 Work-Life Balance

• Work-Life Balance refers to the balance between work and personal life.
• Work-Life Balance means the concept of improving quality of life through appropriate time and energy distribution between work life and personal life.
• Recently, the importance of work-life balance has grown as values that prioritize quality of life and personal time over simple economic compensation have spread, especially among Millennials and Generation Z.
• Systems for work-life balance include flexible working, remote work, parental leave, and family care leave. The 4.5-day work week is also being discussed as one of the policies to improve work-life balance.

🔎 Flexible Working System

• A flexible working system allows for flexible adjustment of working hours or locations.
• Flexible working means a work arrangement where workers can autonomously choose their working hours or locations within a certain range. It allows adjustment of work patterns according to individual situations and needs, departing from the traditional fixed work schedule of 9 AM to 6 PM.
• Major types of flexible working include: first, staggered hours, where arrival and departure times are adjusted while maintaining daily working hours; second, selective working hours, where only the total working hours within a certain period need to be fulfilled while daily working hours can be freely adjusted; third, working from home, where work is performed at home rather than in the office; fourth, remote working, where work is performed in places other than the office (cafes, shared offices, etc.).
• Flexible working can be implemented alongside or separately from a 4.5-day work week, with various combinations possible according to worker needs and company situations. After COVID-19, the spread of working from home and remote working has increased awareness of the effectiveness and possibilities of flexible working.

🔎 Productivity Improvement

• Productivity improvement means creating more output with the same resources.
• Productivity improvement refers to increasing the ratio of output to input - creating more value with the same time and resources, or creating the same value with less time and resources.
• Productivity improvement is an important issue in discussions about the 4.5-day work week. From a critical perspective, there are concerns that reduced working hours will lead to decreased production, but from a supportive perspective, it is argued that productivity could actually increase through improved concentration and satisfaction.
• Looking at overseas cases, Microsoft Japan announced a 40% improvement in employee productivity after implementing a 4-day work week for one month in August 2019. Iceland's experiment also showed that productivity was maintained or improved despite reduced working hours.
• To improve productivity, not just simple reduction of working hours but overall innovation in work methods needs to happen together, including improving work processes, utilizing digital technology, and reducing unnecessary meetings and reports.

5️⃣ Frequently Asked Questions (FAQ)

Q: How will salaries be affected if a 4.5-day work week is implemented?

A: There are mainly two ways of handling salaries when implementing a 4.5-day work week. The first is the "wage preservation model," where the existing salary is maintained even though working hours are reduced. In this case, workers' actual hourly wage increases, but companies' labor costs may rise. The second is the "proportional model," where salary decreases proportionally to the reduced working hours. This reduces the burden on companies but decreases workers' income. Most 4.5-day work week models currently under discussion assume wage preservation, in which case government support measures (tax benefits, employment subsidies, etc.) to alleviate company burdens are being considered together. When actually implemented, various methods may be applied depending on company size, industry, and management situation.

Q: Can a 4.5-day work week be applied to all occupations?

A: It is difficult to apply a 4.5-day work week uniformly across all occupations. In occupations where continuity is important or 24-hour service is required, implementation may not be easy. For example, healthcare, security, emergency rescue, transportation, logistics, and food service industries prioritize service continuity, making it difficult to have collective time off on Friday afternoons. Manufacturing may also face disruptions in production line operations. On the other hand, implementation may be easier in occupations relatively free from time and location constraints, such as IT, finance, and office work. Considering these differences, discussions are underway to apply various forms of flexible working arrangements by occupation. For example, in occupations requiring shift work, alternative methods such as 9 days of work over 2 weeks or monthly total working hour reduction could be considered instead of a 4.5-day work week. The important thing is that a customized approach according to the characteristics of each industry and occupation is necessary.