Labor Groups Demand 14.7% Increase in Next Year’s Minimum Wage to 11,500 Won

"Minimum Wage Increase Rate Fails to Keep Up with Living Expenses"

The labor community has demanded that the minimum hourly wage for next year be raised to 11,500 won. This represents a 14.7% increase compared to this year.

The Federation of Korean Trade Unions and the Korean Confederation of Trade Unions held a press conference in front of the Sejong Center for the Performing Arts in Jongno-gu, Seoul, on the 11th and made this demand.

Members of the "Minimum Wage Movement Headquarters for All" and the two major labor unions shouted slogans while announcing their minimum wage demands for next year on the stairs of Sejong Center for the Performing Arts in Jongno-gu, Seoul, on the 11th. Photo by Yonhap News

The two major labor unions stated that next year’s minimum wage should be set at 11,500 won, a 14.7% increase from this year’s 10,030 won. If this is implemented, based on a 40-hour workweek and 209 working hours per month, the monthly wage would amount to 2,403,500 won.

The two unions argued, “Currently, the rate of minimum wage increase is not keeping up with the rise in living expenses,” and added, “Over the past five years, the expansion of the scope of minimum wage inclusion has actually led to a decrease in real wages.”

They further stated, “Only when the minimum wage is raised and the consumption expenditure of low-wage workers increases can sales go up and small business owners also benefit.”

Although this year’s minimum wage exceeded 10,000 won per hour for the first time, the increase rate was only 1.7% (170 won). This is the second lowest rate, following 2021’s 1.5%.