"Minimum Wage Increase Rate Lower Than Cost of Living Rise"
Minimum Wage Commission to Hold Fifth Plenary Session on the 17th
Labor unions have demanded that next year's minimum wage be set at 11,500 won per hour.
The "Minimum Wage Movement Headquarters for All," which includes the Federation of Korean Trade Unions (FKTU), the Korean Confederation of Trade Unions (KCTU), and civic groups such as the People's Solidarity for Participatory Democracy, held a press conference in front of the Sejong Center for the Performing Arts in Jongno-gu, Seoul, on the morning of June 11 and made this announcement. This is the first demand proposal put forward by labor groups as the Minimum Wage Commission, which will decide next year's minimum wage, is currently in session.
They stated, "While the cost of living in 2024 increased by 7.5%, the minimum wage was raised by only 2.5%," and added, "Due to the expansion of the minimum wage inclusion criteria over the past five years since 2019, even when the minimum wage was increased, real wages did not actually rise."
They went on to argue, "Reflecting the 11.8% gap between economic indicators?such as economic growth rate and inflation rate?over the past five years and the minimum wage increase rate, as well as a 2.9% adjustment for the decline in real wages caused by the expansion of the minimum wage inclusion criteria, the minimum wage to be applied in 2026 should guarantee an hourly rate of 11,500 won."
This represents a demand for an approximately 14.66% increase from this year’s minimum wage of 10,030 won. Assuming a 40-hour workweek and 209 working hours per month, this would result in a monthly wage of 2,403,500 won.
They also stated, "The International Labour Organization (ILO) recommends 'guaranteeing a minimum wage for all forms of labor,'" and insisted that the minimum wage should also be applied to specially employed workers, platform workers, and freelancers.
The Minimum Wage Commission, which includes representatives of workers, employers, and public interest groups, will hold its fifth plenary session on June 17. The commission is required to decide on the minimum wage level and submit it to the Minister of Employment and Labor by the end of this month. However, it has only met the final deadline nine times so far.
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