Labor Unions Likely to Demand Over 13,000 Won
Business Groups Expected to Call for a Freeze and Industry-Based Differentiation Again This Year
The Minimum Wage Commission will officially begin deliberations on setting the minimum wage for 2026 on April 22. Experts believe that, since labor unions demanded a minimum hourly wage of 12,600 won last year, they are likely to request an even higher rate this year.
According to the Minimum Wage Commission and media reports on April 22, the commission, which consists of 27 members?nine each representing workers, employers, and the public interest?will hold its first plenary session at 3:00 p.m. today at the Government Complex Sejong.
Previously, former Minister of Employment and Labor Kim Moonsoo requested the commission to begin deliberations on March 31. The Minimum Wage Commission is required to determine the minimum wage level and submit it to the Minister of Employment and Labor within 90 days from the date of the request for deliberation.
Although the official deadline is the end of June, the consensus is that the process should be viewed as a long-term one, as the deadline has only been met nine times so far. During the meeting, the commissioners will formally receive the Minister's request for deliberation and discuss the schedule for future meetings.
This year, the minimum wage exceeded 10,000 won per hour for the first time, but the increase rate was only 1.7% (170 won), making it the second lowest on record after 2021 (1.5%). As a result, the key issue for next year is what the rate of increase will be. Since labor unions demanded 12,600 won last year, there is speculation that they will call for an even higher hourly wage this year.
On the other hand, business groups are likely to demand a freeze. In addition, although it is stipulated by law but has not been implemented since 1988, they are also expected to request 'differentiated application by industry' again this year.
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