South Korea officially sets next year’s minimum wage rate at 9,160 won
South Korea has officially set next year’s minimum hourly wage rate at 9,160 won (US$8), despite objections by business lobbies.
The Ministry of Employment and Labour said it rejected the complaints of three business groups following a legally mandated review period, and set the minimum wage as a 5.1% increase from that of this year, taking after the Minimum Wage Commission’s decision.
The new rate will take effect on 1 January 2022, translating to a monthly wage of 1.91 million won (US$1,672), and will apply across all industries.
The Minimum Wage Commission comprises a trilateral panel comprising nine representatives each, from labour groups, management and the general public.
This year, South Korea’s minimum wage talks centred around business representatives’ call for a wage freeze amid struggles caused by the pandemic.
South Korea’s minimum wage rose by 16.4% in 2018, 10.9% in 2019, 2.9% in 2020 and 1.5% in 2021, which registered the lowest year-on-year increase.