[Asia Economy Reporter Kim Bo-kyung] The Korea Federation of Micro Enterprise Associations stated that it is difficult to accept the Ministry of Employment and Labor's response rejecting objections to next year's minimum wage proposal, and that "it is time for the National Assembly to step in for a fundamental reform of the minimum wage system."
Regarding the objection submitted last month to the Ministry of Employment and Labor concerning the 2022 minimum wage proposal, the Federation received a response on the 3rd indicating that the objection is difficult to accept.
In response, on the 4th, the Federation expressed strong regret over the decision to reject the objection, stating, "For small business owners driven into a situation worse than a disaster due to business restrictions caused by the COVID-19 pandemic, the minimum wage increase adds an additional burden."
They continued, "In a situation where small business owners are trapped in a 'debt vicious cycle,' repaying debt with more debt, the 5.1% minimum wage increase decision and the Ministry of Employment and Labor's refusal to reconsider have caused great disappointment among small business owners," adding, "This could be the signal flare of an economic crisis originating from small business owners."
The Federation explained that next year's minimum hourly wage is 9,160 won, and including the weekly holiday allowance, the hourly wage reaches 11,000 won. When including the four major social insurances and retirement allowance reserves, the minimum monthly labor cost amounts to at least 2.38 million won.
They urged, "Since the current minimum wage determination structure has become a means threatening the jobs and survival of small business owners, who are the foundation of our economy, and vulnerable workers employed in small business sectors, the National Assembly must immediately take action to amend the Minimum Wage Act."
They emphasized that fundamental system reforms must be made, including considering the payment capacity of small business owners, differentiating by small business sectors and sizes, and deciding the minimum wage on a biennial basis.
Previously, the Federation had raised objections to next year's minimum wage proposal, citing reasons such as ignoring the payment capacity of small business owners, not reflecting the reality of small business owners struggling due to COVID-19, and not applying minimum wage distinctions.
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