"Minimum wage increases should be reflected for labor providers as well"
The National Human Rights Commission of Korea has expressed the opinion that the Ministry of Employment and Labor needs to improve the criteria for calculating the minimum job-seeking benefit amount for special-type workers (labor providers).
The Commission recently conveyed to the Minister of Employment and Labor its view that the relevant public notice should be revised so that the “standard remuneration amount,” which is used to set the minimum job-seeking benefit for labor providers, is linked to factors such as the minimum wage increase rate and price fluctuations, it said on the 25th.
The Ministry of Employment and Labor explained that for both employees and labor providers, job-seeking benefits are calculated based on 60% of their average wage (remuneration) before separation. However, for employees, the average wage over the most recent three months is used, while for labor providers, the average remuneration over the most recent one year is used. It added that the system of a “minimum daily job-seeking benefit linked to the minimum wage,” which applies to employees, does not apply to labor providers, creating a difference between the two groups.
The Commission pointed out that even as prices rise, the standard remuneration amount for labor providers has long remained unchanged, which may weaken the function of job-seeking benefits in stabilizing their livelihood. It stated that the system needs to be improved so that increases in the minimum wage are reasonably reflected for labor providers, as is the case for employees.
An official from the Commission said, “The employment insurance system for labor providers also needs to be supplemented so that, in line with economic realities, it can guarantee at least a minimum level of livelihood stability in the event of unemployment.”
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