Next Year's Seoul-Type Living Wage Hourly Rate Confirmed at '10,766 Won'... Monthly 2,250,094 Won

0.6% Increase from This Year's 10,702 Won, 1,606 Won Higher than Next Year's Minimum Wage
Applied to 14,000 Workers Including Seoul City, Affiliated Organizations, Subsidiaries, and New Deal Job Participants

[Asia Economy Reporter Lim Cheol-young] The Seoul Metropolitan Government has finalized the ‘Seoul-type Living Wage’ for next year at 10,766 KRW per hour.

On the 16th, Seoul announced that the Seoul-type Living Wage for next year has been set at 10,766 KRW, a 0.6% (64 KRW) increase from this year’s living wage of 10,702 KRW. This amount is 1,606 KRW higher than the government’s announced minimum wage of 9,160 KRW for next year, which was announced last August.

Accordingly, those subject to the Seoul-type Living Wage will receive 2,250,094 KRW per month based on the regular wage if they work the statutory 209 hours. The Seoul-type Living Wage is a wage level that ensures workers and their families can secure housing, education, and cultural life, and live above the poverty level. It is determined annually by considering inflation rates, household income, and expenditures.

The newly confirmed ‘Seoul-type Living Wage’ will be applied from January 1 next year. The subjects include approximately 14,000 people: ▲directly employed workers affiliated with the Seoul Metropolitan Government and its investment and contribution institutions who are not subject to the public official salary system ▲workers affiliated with subsidiaries of Seoul’s investment institutions ▲private consigned workers ▲participants in New Deal jobs, among others.

Seoul comprehensively decided the living wage for next year by considering the difficult economic situation caused by COVID-19, Seoul’s financial conditions, and inflation rates. It also took into account income disparities between private and public workers caused by the gap between the living wage and the minimum wage. The gap between the living wage and the minimum wage, based on monthly salary, has steadily increased: 375,782 KRW in 2019, 403,997 KRW in 2020, and 414,238 KRW this year.

On the 10th, Seoul held the ‘2nd Seoul Living Wage Committee’ meeting and finalized the amount after deliberation. The details regarding next year’s living wage amount and application criteria are scheduled to be announced on the 16th.

Han Young-hee, Seoul’s Labor, Fairness, and Coexistence Policy Officer, explained, “The Seoul-type Living Wage, now in its eighth year since introduction, has achieved results such as ushering in the era of a 10,000 KRW hourly wage and driving the government’s minimum wage increases. The 2022 living wage increase was determined at an appropriate level by comprehensively considering the difficult economic situation due to COVID-19, Seoul’s financial conditions, and the gap with the minimum wage.”

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