Initial Proposals for Next Year’s Minimum Wage: Labor "12,000 Won" vs Employers "Freeze" (Update)

Labor Representatives: "Difficult to Make Ends Meet with Current Minimum Wage"
Employer Representatives: "Small Businesses and SMEs Have Reached Their Limits"

Regarding next year’s minimum wage increase, labor representatives presented an initial proposal of 12,000 won per hour, which is a 16.3% rise from this year’s rate of 10,320 won. However, employers argued for a freeze.

At the 8th plenary meeting held on the 23rd at the Government Sejong Complex, Kijeong Ryu, Executive Director of the Korea Employers Federation (KEF) on the employer side (left), and Giseop Ryu, Secretary General of the Korean Confederation of Trade Unions (KCTU) on the worker side, are listening with stern expressions. Photo by Yonhap News.

On June 23, the Minimum Wage Commission held its 8th plenary meeting at the Government Sejong Complex to discuss next year’s minimum wage increase.

The labor side’s initial demand was 12,000 won per hour, equivalent to 2,508,000 won per month (based on 209 working hours per month). They stated that it is difficult for worker households to maintain their livelihoods under the current minimum wage.

In contrast, the employer side submitted a proposal to freeze the minimum wage at this year’s level, arguing that small and medium-sized businesses and small business owners have reached their limits.

The difference between the two sides’ initial proposals is 1,680 won. Both parties plan to narrow this gap through further revised proposals as the discussions continue.

The statutory deadline for reviewing the minimum wage is June 29, which is 90 days after the request for review from the Minister of Employment and Labor.

Even if the final deadline passes, the Minimum Wage Commission must submit the minimum wage proposal to the Minister of Employment and Labor by the middle of next month, taking into account the remaining administrative procedures. The Minister must finalize and announce the minimum wage by July 5, and it will take effect from January 1 of the following year.

Looking at the minimum hourly wage and the annual rate of increase over the past five years: in 2022 it was 9,160 won (5.05% increase), in 2023 it was 9,620 won (5.0%), in 2024 it was 9,860 won (2.5%), in 2025 it was 10,030 won (1.7%), and in 2026 it was 10,320 won (2.9%).

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