Next Year's Minimum Wage Proposal: Labor 10,000 Won · Management 8,850 Won... Gap Narrows from 1,700 to 1,150 Won

9th Plenary Meeting Begins... Submission of 3rd Amendment Proposal
Differences Narrowed, Vote Expected on 12th-13th

On the afternoon of the 12th, at the 9th plenary meeting held in the Minimum Wage Commission meeting room at the Government Sejong Complex, Ryu Ki-jung, Executive Director of the Korea Employers Federation (left), a user committee member, and Lee Dong-ho, Secretary General of the Federation of Korean Trade Unions (FKTU), a labor committee member, are seen greeting each other. (Photo by Yonhap News)

[Sejong=Asia Economy Reporter Moon Chaeseok] The labor sector has lowered its minimum wage demand for next year from the initial proposal of 10,800 won to 10,000 won. The 10,000 won figure is the minimum wage amount promised by the Moon Jae-in administration. The management side also compromised to a level close to this year's minimum wage increase rate of 1.5%.

According to the Minimum Wage Commission on the 12th, at the 9th plenary meeting held at the Government Complex Sejong, the labor sector presented 10,000 won as their third demand proposal. This is a 14.7% increase compared to this year's 8,720 won. The labor sector initially proposed 10,800 won, then lowered it to 10,440 won in the first round, 10,320 won in the second round, and finally 10,000 won in the third round.

The management side, which initially demanded a freeze, has also expanded its increase demands. After proposing 8,740 won in the first round, they raised it to 8,810 won in the second round and 8,850 won in the third round. The 8,850 won figure is a 1.49% increase compared to this year, similar to this year's minimum wage increase rate of 1.5%.

If the labor and management sides fail to narrow their differences in the additional revision proposals, the public interest commissioners are likely to suggest a 'deliberation promotion range' and proceed to a vote. If it goes to a vote, the public interest commissioners hold the casting vote. This is because the Minimum Wage Commission is composed of 9 members each from the employer representatives (management), worker representatives (labor), and public interest commissioners.

The management side has argued for a minimal increase considering the reduced wage-paying capacity due to COVID-19, while the labor side has insisted on a substantial increase to stabilize the livelihoods of low-wage workers and resolve income polarization. The meeting was adjourned after presenting the third revision proposal and is scheduled to resume at 7:30 PM.