"Women at Smaller Businesses Hit Hardest: 2.77 Million Workers Earned Less Than Minimum Wage Last Year"

Ministry of Employment and Labor Releases 2026 Minimum Wage Review Manual

Last year, one out of every eight wage workers received less than the minimum wage. The proportion of workers earning below the minimum wage was higher among those employed at smaller businesses and among women.

According to the "2026 Minimum Wage Review Manual" released by the Minimum Wage Commission on August 11, the number of workers earning below the minimum wage last year stood at 2,769,000, accounting for 12.4% of all wage workers (22,413,000 people). This figure is based on the "Supplementary Survey on the Economically Active Population" conducted by the Ministry of Data and Statistics.

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The percentage of workers earning below the minimum wage peaked at 13% up to 2017, but saw a sharp increase after the launch of the Moon Jae-in administration, reaching a high of 16.5% in 2019. At that time, as the government pursued income-led growth and rapidly raised the minimum wage, more small business owners and self-employed individuals were unable to meet the minimum wage requirement. Since 2022, the rate has fluctuated, recording 12.7% in 2022, 13.7% in 2023, and 12.5% in 2024.

The proportion of workers earning less than the minimum wage was higher among those working at smaller businesses and in more precarious employment types. In 2025, 30.3% of workers at businesses with 1 to 4 employees earned less than the minimum wage; for businesses with 5 to 9 employees, the figure was 17.6%. By contrast, the proportion dropped to just 1.8% at businesses with 300 or more employees.

By employment type, 38.5% of temporary and 32.0% of daily workers earned less than the minimum wage, while only 3.6% of regular workers did. The gender gap was also pronounced, with 9.0% of male workers and 16.2% of female workers earning below the minimum wage. Significant differences were also found by age and education level. Among workers 19 years old and younger, nearly half—49.5%—received less than the minimum wage. Among those 60 and older, 31.9% earned less than the minimum wage. By education, workers with a high school diploma or less had a significantly higher rate of earning below the minimum wage (22.5%) compared to those with some college (5.8%) or a university degree (4.3%).

The Federation of Korean Trade Unions, the Korean Confederation of Trade Unions, and the Movement Headquarters for Minimum Wage for All held a press conference on the 15th at the stairs of Sejong Center for the Performing Arts in Jongno-gu, Seoul, announcing the minimum wage demands for 2027. June 15, 2026. Photo by Dongju Yoon

Compared with major countries, as of 2026, the minimum wage was higher in several advanced economies: in the United Kingdom, it was 12.21 pounds per hour (about 23,336 won); in Germany, 13.9 euros (about 22,748 won); and in France, 12.02 euros (about 19,670 won)—all surpassing Korea’s minimum wage. In the United States, the federal minimum wage was lower at 7.25 dollars per hour (10,270 won), but it varies by state, and in Washington, D.C., it stood at 17.95 dollars per hour (25,426 won), more than double the federal rate. Japan’s national average minimum wage for 2026 was 1,121 yen per hour (10,028 won), which is lower than Korea's minimum wage.

Meanwhile, the Ministry of Employment and Labor officially set the minimum wage for 2027 at 10,700 won per hour. This is an increase of 380 won (3.7%) compared to this year’s minimum wage of 10,320 won per hour. When converted to a monthly wage (based on a 40-hour workweek and 209 hours per month), it amounts to 2,236,300 won, and applies equally to all workplaces regardless of industry.

According to the survey on employment types, it is estimated that 660,000 workers (an impact rate of 3.8%) will be affected by next year's minimum wage. Based on supplementary data from the economically active population, this figure rises to 2,978,000 workers (an impact rate of 13.3%).

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