South Korea raises minimum wage by 5.1% in 2022
This has been confirmed by the Finance Ministry, which said the minimum wage for 2022 has been increased from 2021’s 8,720 won (US$7.3), up 5.1% year-on-year.
The minimum wage will be applicable to all companies and employees, including foreigners.
The new year also saw changes to other labour laws in the country.
Private companies with between 5 and 29 employees must now provide paid holiday for public holidays as well as substitute holidays. Until last year, private firms were not obliged to pay employees for these public holidays.
In addition, deterrence against discrimination and sexual assault at the workplace will be stepped up. Once a victim reports an incident to the labour relations board, an investigation will be held to determine compensation or any punishment for the perpetrator.
Also, working parents will be paid more for their parental leave. If one or both parents take their parental leave during the first 12 months of their child’s birth, both will be paid 100% of their monthly income, up to a maximum of around US$2,500. Previously, only one parent received 100% of his/her monthly income, while the other received only 80%, according to Arirang.