Ministry of Employment and Labor Finalizes Next Year's Minimum Wage at 10,320 Won

Monthly Equivalent Set at 2,156,880 Won
Ministry of Employment and Labor Seeks System Improvements

On August 5, the Ministry of Employment and Labor finalized and announced the minimum wage to be applied next year at 10,320 won. This represents an increase of 2.9% (290 won) compared to this year’s minimum wage of 10,030 won. The monthly equivalent, based on a 40-hour workweek and 209 working hours per month, amounts to 2,156,880 won. This minimum wage will be applied uniformly to all workplaces, regardless of industry.

The Ministry stated that there were no objections raised during the objection period, which lasted from July 18 to July 28. Minister Kim Younghoon of the Ministry of Employment and Labor said, “We will strengthen guidance, supervision, and policy promotion to ensure that the determined minimum wage is properly observed in the field.”

The Ministry also announced plans to seek improvements to the current minimum wage system, as issues continue to be raised. Minister Kim stated, “We will seek ways to improve the minimum wage system so that it maintains its original purpose while faithfully reflecting the changing labor market and on-site conditions.”

Previously, the ‘Minimum Wage System Improvement Research Group,’ launched by the Ministry in November last year to discuss ways to improve the minimum wage decision-making system, submitted a proposal suggesting that the number of members in the Minimum Wage Commission, which decides the minimum wage, should be reduced from 27 to 15.

The proposal also called for strengthening the functions of the expert committee to enhance the professionalism and efficiency of minimum wage deliberations. It included a recommendation to consider statistics such as economic growth rate and inflation rate as criteria for determining the minimum wage, as well as to examine the actual impact on wages, including employment effects and workers’ cost of living.