The gap between labor and management regarding next year's minimum wage has narrowed to 200 won.
The Minimum Wage Commission held its 14th plenary meeting on July 14 at the Government Sejong Center to discuss the minimum wage level for the upcoming year. Both labor and management presented their 11th revised proposals following the submission of the 10th revision.
Discussions gained momentum after the public interest committee presented a range for deliberation. Labor representatives proposed a minimum wage of 10,820 won, while management representatives suggested 10,620 won. Both figures represent increases of 4.8% and 2.9%, respectively, from this year's minimum wage of 10,320 won. The gap in the 11th revision has decreased from the 290 won difference indicated by the public interest committee's deliberation range.
Previously, the public interest committee set the deliberation range for next year's minimum wage between 10,600 won and 10,860 won, reflecting an increase of 2.7% to 5.25% from this year. This range serves as the upper and lower limits for negotiations and voting.
The lower limit is based on the projected consumer price inflation rate for this year, which the Bank of Korea and the Korea Development Institute (KDI) estimated at 2.7% in May. The upper limit combines the inflation rate with projected economic growth rates, averaging the growth forecasts of the Bank of Korea (2.6%) and KDI (2.5%) with the consumer price outlook.
With the public interest committee's range established, discussions on next year's minimum wage are accelerating. According to the Minimum Wage Act, the Minister of Employment and Labor must finalize and announce the minimum wage based on the commission's proposal by August 5.
Considering the remaining administrative procedures, the commission is expected to conclude discussions on next year's minimum wage by mid-July, with a strong possibility of reaching a final decision during today's negotiations.
* This article has been translated by AI.
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