Next Year's Minimum Wage 9,860 Won... Minimum Wage Commission Chair "A Significantly High Level" (Comprehensive)

The minimum wage for next year has been set at 9,860 won, a 2.5% increase from this year. Although the Minimum Wage Commission conducted the longest deliberation period, it ultimately failed to reach a consensus between labor and management, resulting in the minimum wage being finalized through a vote.

The Ministry of Employment and Labor announced on the 19th that the proposed minimum wage for 2024 will be 9,860 won per hour, an increase of 240 won or 2.5% compared to this year. The monthly salary (based on 209 hours) will be 2,060,740 won, which is 51,600 won more than this year’s 2,010,580 won.

The Minimum Wage Commission held its 14th plenary meeting at the Government Complex Sejong the previous day, with all 26 members in attendance, to discuss the minimum wage. During the 14th meeting, the 7th and 8th revised proposals from labor and management were presented. The gap narrowed from the initial proposal of 2,590 won to 775 won (based on the 8th revised proposal).

Subsequently, the public interest members, at the request of both labor and management, proposed a deliberation facilitation range of 9,820 won (a 2.1% increase from this year) to 10,150 won (a 5.5% increase), considering wages of similar workers and living expenses. The 15th plenary meeting began at midnight that day, and the gap was further reduced to 180 won (based on the 10th revised proposal).

The public interest members judged that the gap had narrowed to a level where labor and management could reach an agreement and proposed a mediation offer of 9,920 won (a 3.12% increase) to both sides through the steering committee. However, the proposal failed to reach consensus due to opposition from four labor representatives recommended by the Korean Confederation of Trade Unions.

Ultimately, the final proposals from labor and management (10,000 won from labor representatives and 9,860 won from management representatives) were submitted for a vote. The voting results were 17 in favor of the management representatives’ proposal, 8 for the labor representatives’ proposal, and 1 abstention, finalizing the minimum wage for next year at 9,860 won.

The minimum wage started at 462.50 won and 487.5 won (differentiated by industry only in the first year) in 1988, the year the system was introduced, rose to 1,005 won in 1993, and 2,100 won in 2001. Over the past five years, the minimum wage and its year-on-year increase rates were 8,350 won (10.9%) in 2019, 8,590 won (2.87%) in 2020, 8,720 won (1.5%) in 2021, 9,160 won (5.05%) last year, and 9,620 won (5.0%) this year. With the minimum wage for next year set at 9,860 won, the labor sector’s demand to surpass the "10,000 won" mark has been dashed.

After the minimum wage decision, Park Junsik, chairman of the Minimum Wage Commission, told reporters, "The absolute level of the minimum wage is quite high," adding, "We must acknowledge that the minimum wage is not only a labor issue but also an important policy variable that affects the entire national economy."

[Image source=Yonhap News]

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