The minimum wage for next year is expected to be set between 10,600 and 10,860 won.
The Minimum Wage Committee held its 14th plenary meeting on July 14 at the Government Sejong Center to discuss the minimum wage level for the upcoming year.
The public interest members of the committee determined the deliberation facilitation range to be between 10,600 and 10,860 won, representing an increase of 2.7% to 5.25% from this year. This range serves as a guideline for discussions, encouraging consensus or voting within these limits.
Previously, both labor and management sides proposed figures of 11,150 won and 10,850 won, respectively, in the 10th revision. The upper limit of the deliberation facilitation range is 290 won lower than the labor representatives' proposal, while the lower limit is 50 won higher than the management representatives' proposal.
The basis for the lower limit is the projected consumer price inflation rate for this year. The Bank of Korea and the Korea Development Institute (KDI) estimated the inflation rate at 2.7% in May, indicating that next year's minimum wage should increase in line with this inflation rate.
The upper limit is based on a combination of the inflation rate and projected economic growth rate. The Bank of Korea forecasts a growth rate of 2.6% for this year, while KDI estimates it at 2.5%. The upper limit was set by adding the average growth rate from both institutions to the projected inflation rate.
With the public interest members presenting the deliberation facilitation range, discussions on next year's minimum wage are expected to accelerate. According to the Minimum Wage Act, the Minister of Employment and Labor must finalize and announce the minimum wage by August 5 based on the committee's proposal.
Considering the remaining administrative procedures, the committee is likely to conclude discussions on next year's minimum wage by mid-July, with a final agreement anticipated soon after.
* This article has been translated by AI.
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