No Industry-Specific Minimum Wage Next Year as Proposal Rejected in Vote

Yonhap News Agency

The minimum wage for next year will be applied uniformly to all workplaces, regardless of industry.

The Minimum Wage Commission announced on June 18 that it held its seventh plenary meeting at the Government Complex Sejong and put the “Proposal for Industry-Based Differentiation of the Minimum Wage” to a vote. The proposal was rejected, with 11 votes in favor, 14 against, and 1 invalid.

A total of 26 members participated in the vote: 8 representatives of workers (with 1 out of 9 absent), 9 employer representatives, and 9 public interest representatives. The proposal failed because it did not meet the majority requirement of 14 votes. As a result, the plan to introduce differentiated minimum wages by industry was ultimately rejected.

Employers have argued that certain vulnerable sectors, such as accommodation and food services, which have been hit hard by economic downturns and high inflation, should be allowed to pay a lower minimum wage compared to other industries.

In contrast, labor representatives have maintained that applying a lower minimum wage to only specific industries would institutionalize discrimination against workers.

The issue of industry-based differentiation of the minimum wage is one of the most contentious topics between labor and management during annual deliberations. The current Minimum Wage Act allows for industry-based differentiation, and it was temporarily introduced once in 1988, the first year the system was implemented. However, due to strong opposition from labor and debates about its effectiveness, a single minimum wage across all industries has been maintained since 1989.

With the rejection of the proposal in this vote, the discussion on differentiated application will be postponed once again to next year’s Minimum Wage Commission.

This content was produced with the assistance of AI translation services.