Minimum Wage Confirmed at 641,840 Won Per Month

The minimum wage for the coming year from this September to August 2005 was confirmed at 641,840 won per month.

The Committee for Minimum Wage said on June 25 that “it was decided to set the minimum hourly wage at 2,840 won with a 330 won hourly increase from last year’s rate of 2,510 won starting this September and lasting until August of next year.”

With this hourly rate, the minimum daily wage comes out to be 22,720 won (2,840 won x eight hours) while the minimum monthly wage amounts to 641,840 won (2,840 x 226 hours).

Monthly minimum wage will be increased by 13.1 percent, or 74,580 won, from the current rate of 567,260 won. It is the highest raise ever since the implementation of the system back in 1988 in terms of the total amount of the raise and as for the rate of the increase, it is the highest following the 16.6 percent raise in 2000.

This new minimum wage will be applicable for 1,254,000 workers, 8.8 percent of the total number of workers.

At the general meeting hosted by the Committee on Minimum Wage on June 25, the workers proposed a 13.1 percent increase instead of the 35 percent, or a monthly wage of 770,000 won, while the employers raised their call for 3.8 percent, or a monthly wage of 590,000 won, to 10.2 percent. Fifteen representatives out of the 25 total members (nine laborers, eight employers, and eight neutral members) supported the proposition set out by the workers.

The committee also adopted a motion for the government to establish measures to accommodate social welfare and tax credit support for workers with minimum wage and small business owners.

The labor said, “We will fight until the minimum wage reaches the level equal to half of average wage of total labor force in Korea through systematic reform.”

All of the owners of a business establishment will pay all their employees the minimum wage or more with the exception for the probationers or others. If an owner fails to follow, the owner will be sentenced to three years in prison.

Jong-Hoon Lee taylor55@donga.com