Minimum wage for 2016 set at 6,030 KRW per hour, an 8.1% increase
The Minimum Wage Council has set minimum wage for the next year at 6,030 KRW per hour, an increase of 8.1% over 2015.
[Table 1] Minimum Wage for 2016
(Units: Korean Won)
|
Per Hour |
Per Day
(8 hours) |
Per Month | Rate of Increase | |
|
209 hours |
226 hours |
|||
| 6,030
(5,580) |
48,240
(44,640) |
1,260,270
(1,166,220) |
1,362,780
(1,261,080) |
8.1% |
※ Numbers in ( ) refer to minimum wage for 2015
The Minimum Wage Council held 12 meetings between 9 April and 8 July and made its decision through a vote, without 9 worker and 2 employer representatives, on the minimum wage for the next year to increase 8.1% as suggested by the public interest representatives* during the 12th meeting.
* Of 27 representatives, 16 (9 public interest representatives and 7 employer representatives) participated in the vote, with a majority approving (15 in favor, 1 against).
Worker expectations ran especially high this year as the government and politicians have suggested a significant increase in minimum wage. Labor, from the beginning of the meetings, has delayed deliberations by insisting on disclosure of the meeting contents and reflecting household expenditures in the minimum wage, seeking to gain influence and raise the increase rate.
The KEF has worked hard to keep the increase rate low by emphasizing the harsh economic conditions and difficulties faced by SMEs, and some employer representatives even walked out during the voting. However, the minimum wage has been increased by 8.1% over this year, which will likely put a greater burden on SMEs and micro-businesses already struggling from sluggish domestic demand in the wake of the MERS outbreak.