Public Interest Commissioner: "Next Year's Minimum Wage Should Be Decided Between 8,620 Won and 9,110 Won" (Update)

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] The level of minimum wage increase for next year is expected to be decided between 0.35% and 6.1%. The public interest members of the Minimum Wage Commission proposed this deliberation facilitation range. It has become virtually impossible to reduce or freeze the minimum wage as requested by the business sector.

On the 13th, the Minimum Wage Commission held its 8th plenary meeting at the Government Sejong Complex and began the final discussions on next year's minimum wage. When the positions of labor and management had not narrowed even after two hours into the meeting, the public interest members, including Chairman Park Jun-sik of the Minimum Wage Commission, presented the deliberation facilitation range, which is the upper and lower limits of the minimum wage, to both sides.

The lower limit of the minimum wage was proposed at 8,620 won, which is 0.34% (30 won) higher than this year, and the upper limit was proposed at 9,110 won, which is 6.1% (520 won) higher. Labor and management are expected to submit their second revised proposals based on this range.

Kwon Soon-won, a professor at Sookmyung Women's University and the secretary of the public interest members, explained, "A 0.35% increase in the minimum wage is virtually a freeze level based on the inflation rate and real wage increase rate." He then informed labor and management, "Please negotiate based on this range. I will request a recess to prepare the revised proposals."

Earlier, the labor side declared a boycott of the meeting in protest against the business sector's demand to reduce the minimum wage to 8,500 won. On this day as well, as the business sector insisted on the reduction plan, all four members recommended by the Korean Confederation of Trade Unions (KCTU) did not attend the plenary meeting, while five members from the Federation of Korean Trade Unions (FKTU) participated. As the positions of labor and management still remained parallel, it is analyzed that the public interest members proposed the deliberation facilitation range under the judgment that the minimum wage decision could no longer be delayed.