Hyundai Motor is considering its biggest overhaul of worker compensation in nearly six decades, studying a transition from its long-standing hourly wage system to a fixed monthly salary as automation and humanoid robots are expected to reshape factory operations.
The company’s management and labor union agreed during their July 8 wage and collective bargaining negotiations for 2026 to commission a joint study on adopting a full monthly salary system, according to industry officials on July 12.
The two sides plan to establish a joint task force after the study is completed to determine whether and how the new pay structure should be implemented. The task force is expected to review recommendations from outside advisers as well as compensation systems used by global automakers before proposing a model tailored to Hyundai’s manufacturing operations.
Under the proposed system, employees would receive a fixed monthly salary regardless of fluctuations in working hours. Hyundai’s current pay structure is based on hourly wages supplemented by overtime, night-shift and holiday work premiums.
The move is aimed at providing greater income stability as automation reduces the need for overtime, which has traditionally accounted for a significant portion of factory workers’ earnings.
Industry analysts say the discussions reflect growing expectations that automation and humanoid robots will increasingly replace labor-intensive tasks on production lines, reducing overtime opportunities and prompting a reassessment of the company’s compensation model.
Boston Dynamics, Hyundai Motor Group’s robotics subsidiary, plans to begin mass production of 30,000 humanoid robots a year starting in 2028. The group is also preparing to deploy its Atlas humanoid robot for parts-handling operations at Hyundai Motor Group Metaplant America in Georgia.
Any transition to a full monthly salary system is expected to be gradual. The proposal must first undergo the commissioned study and subsequent labor-management negotiations before a timetable for implementation can be established.
