Constitutional Court Rules "Taxi Drivers' Income Beyond Fixed Quota" Exclusion from Minimum Wage Calculation Is Constitutional

Unanimous Opinion of Judges: "Enacted to Partially Resolve Wage Instability"
"Legislative Purpose Justified, Public Interest Pursued is Significant"

[Asia Economy Reporter Heo Kyung-jun] The Constitutional Court has ruled that the legal provision excluding wages based on 'production revenue' when calculating the minimum wage for taxi drivers is constitutional.

On the 23rd, the Constitutional Court unanimously upheld the constitutionality of Article 6, Paragraph 5 of the Minimum Wage Act in a constitutional complaint case filed by 37 taxi companies.

Article 6, Paragraph 5 of the Minimum Wage Act stipulates that the scope of wages included in the minimum wage for taxi drivers shall be wages prescribed by Presidential Decree, excluding wages based on production revenue. Wages based on production revenue refer to the portion of taxi drivers' income after deducting the fixed daily payment, called excess transportation income.

The taxi companies filed a constitutional complaint arguing that excess transportation income should be included when calculating the minimum wage.

The Constitutional Court stated, "This provision was enacted as a social policy measure to partially alleviate the wage instability of taxi drivers and ensure their livelihood stability," and judged that "the legislative purpose is legitimate and the content is appropriate to achieve the legislative purpose."

Furthermore, the Court ruled, "From the perspective of guaranteeing a dignified life for taxi drivers and fulfilling the state's constitutional obligation to ensure appropriate wages for workers and implement the minimum wage system, as well as from the perspective of fulfilling the state's duty to protect public safety by preventing speeding and reckless driving, the public interest that the challenged provision aims to achieve is significant."

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