Commission begins 1st review on minimum wage for next year
Lee In-jae, chairperson of the Minimum Wage Commission is seated, July 12, 2024, following the commission's decision on the 2025 hourly minimum wage, which surpassed 10,000 won ($7.03) for the first time. Yonhap
The Minimum Wage Commission kicked off this year's first review Tuesday to raise the national minimum hourly wage for next year, officials said.
Korea raised the minimum hourly wage by 1.7 percent to 10,030 won ($7.03) for this year, marking the second-smallest recorded increase.
The labor sector, which had demanded 12,600 won last year, is expected to request a higher minimum wage this year, citing a high inflation rate.
Businesses, on the other hand, are likely to call for a freeze on the grounds that an increase will be a heavy burden for small businesses.
The two sides have yet to come up with their initial proposal.
The country's top two umbrella labor unions — the Korean Confederation of Trade Unions and the Federation of Korean Trade Unions — claimed during a press conference ahead of the review session that the minimum wage should be set at a "realistic" level to guarantee people's livelihoods.
They also said the minimum wage should be expanded to apply to non-regular workers and platform workers.
This year, the commission is also expected to have a heated debate on whether to differentiate the minimum wage based on job sector.
Such a measure was inscribed in law in 1988 but has never been implemented.
The commission, which consists of representatives from the government, labor and business sectors, is required to complete its review within 90 days after receiving such a request, though it is often delayed beyond its time limit.