The Business Sector Likely to Offer Amounts at Frozen Levels
[Sejong=Asia Economy Reporter Moon Chaeseok] On the 24th, the labor sector proposed an initial demand for next year's minimum wage at 10,800 KRW per hour. This is a 23.9% increase from this year's minimum wage of 8,720 KRW.
The worker representatives of the Minimum Wage Commission held a press conference at the Government Complex Sejong in the afternoon and announced that they would submit 10,800 KRW as the initial demand for next year's minimum wage to the commission. When converted to a monthly salary (applying 209 working hours per month), it amounts to 2,257,200 KRW.
The worker representatives stated, "Economic inequality and polarization have intensified due to COVID-19," and added, "To resolve this, the minimum wage must be significantly increased to lead to income growth and consumption stimulation." The minimum wage deliberations proceed by narrowing the gap between the initial demands submitted by the labor and management sectors.
The management sector has not yet presented its initial demand for next year's minimum wage, but it is highly likely to propose an amount at the level of a freeze.
The Minimum Wage Commission plans to continue deliberations on next year's minimum wage by holding the 5th plenary meeting at the Sejong Government Complex on the same day.
During this meeting, the commission will also discuss whether to apply differentiated minimum wages by industry for next year.
The management sector argues that differentiated application of the minimum wage should be introduced, setting lower minimum wages for industries with insufficient wage-paying capacity, such as lodging and food services, but the labor sector opposes this, saying it is against the purpose of the minimum wage system.
The only time differentiated minimum wages by industry were implemented domestically was in 1988, the first year the minimum wage system was introduced. At that time, industries were divided into two groups with different minimum wages applied.
Once the commission decides on the differentiated application by industry, it will begin full-scale discussions on the level of next year's minimum wage.
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