The minimum wage per hour for next year is set at 9,160 won per hour, up 5% from this year.
The Minimum Wage Committee, a social dialogue organization that deliberates and decides on the minimum wage, at its 9th plenary meeting on the night of the 12th, decided to raise the minimum wage for next year to 9,160 won. This is 440 won (5%) higher than this year’s minimum wage (8720 won).
The monthly equivalent of the next year’s minimum wage (based on 209 working hours per month) is 1914,440 won. The minimum wage for next year was adopted by voting on the agenda submitted by public interest committee members.
Four workers and nine employers members of the National Federation of Trade Unions (KCTU) left before voting. Under the current administration, the minimum wage increase rate was 16.4% in 2018 and 10.9% in 2019 based on the year of application, which was double-digit for two years in a row, but fell to 2.9% last year and fell to 1.5%, the lowest level ever recorded this year.
The minimum wage increase rate for next year to 5.0% by the Minimum Wage Committee is a departure from the policy of suppressing the minimum wage increase for the past two years, and it is analyzed that it is a result of partially reflecting the prospect of economic recovery after the novel coronavirus infection (Corona 19) comes out
The Bank of Korea’s economic growth forecast for this year is 4%. Employment indicators are also showing signs of recovery, with the increase in the number of employed people in Korea exceeding 600,000 for two consecutive months since April. However, next year’s minimum wage is far from the massive increase that the labor community has been demanding.
According to the Minimum Wage Act, the Minimum Wage Committee will submit the next year’s minimum wage, which it decided on the same day, to the Ministry of Employment and Labor. The Ministry of Labor must announce next year’s minimum wage by the 5th of next month.
If the minimum wage is announced, it will take effect on January 1 of next year. Both labor and management can raise an objection ahead of the minimum wage announcement, and the Ministry of Labor can request a reconsideration of the minimum wage if the objection is deemed justified.
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Source: 세계일보 by www.segye.com.
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