The minimum wage for next year has been set at 10,700 won, a 3.7% increase from this year, prompting dissatisfaction from both labor and business sectors.
According to relevant authorities, the Minimum Wage Commission held its 14th plenary meeting on July 14 at the Government Sejong Center and decided on the new minimum wage.
Labor representatives expressed that, considering the current price levels, this increase effectively amounts to a freeze. The Korean Confederation of Trade Unions stated shortly after the meeting that the decision was "very disappointing" as it did not adequately reflect the urgent living conditions of low-wage workers. They argued that given the recent inflation and rising living costs, the increase is insufficient to restore the minimum wage's role in ensuring a basic standard of living.
They further criticized the public interest committee members for not fully considering the dire realities faced by low-wage workers and called for an end to the ongoing debates over sector-specific minimum wage applications.
The Korean Confederation of Trade Unions also noted that the failure to expand minimum wage coverage to subcontracted workers has left many in precarious employment, including those in special employment, platform work, and freelancing, still without protections. They pledged to continue their fight for the survival rights of low-wage workers and to address the gaps in minimum wage coverage.
On the other hand, business representatives expressed regret over the additional burden this minimum wage increase places on small business owners. The Korea Employers Federation stated in a press release following the decision that, considering the difficult management realities and limited payment capabilities of small and micro enterprises, the wage should have been frozen. They expressed disappointment that this was not achieved.
They added that the decision, while taking recent inflation into account, was an unavoidable choice made by employer representatives after careful consideration to minimize the management burden and employment contraction resulting from the wage increase. They noted that due to cumulative minimum wage increases, some sectors have seen non-compliance rates exceeding 30%, indicating low acceptance in the field, and reiterated their deep regret over the decision to apply a uniform minimum wage across all sectors next year.
The Korea Employers Federation urged the government and the National Assembly to implement effective support measures to alleviate the management burdens on small and micro enterprises and to ensure that this decision can be accepted smoothly in practice. They also called for prompt reforms to enhance the field's acceptance of the minimum wage.
* This article has been translated by AI.
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