Cost of domestic helpers in Korea is more than four times that of Taiwan

It has been identified that the hourly wage for domestic helpers in Korea is over four times higher than that in neighboring countries such as Hong Kong and Taiwan. To alleviate the strain on care services, recognized as a contributing factor to the low fertility rate issue, the Bank of Korea has proposed an alternative solution. This involves the introduction of foreign domestic helpers while simultaneously implementing differential minimum wages.

According to the 'BOK Issue Note: Measures to alleviate the labor shortage and cost burden of care services' released by the Bank of Korea on Tuesday, the hourly wage for a domestic helper in Korea in 2022 was reported to be 11,433 won, which is six times higher than the hourly wage of a foreign domestic helper in Singapore (1,721 won). Compared to the hourly wages of foreign housekeepers in Hong Kong (2,797 won) and Taiwan (2,472 won), the Korean rate is more than four times higher.

"The United States, Japan, Germany, and Australia are already implementing differentiated minimum wages by industry and region," said Chae Min-seok, head of the Bank of Korea's employment analysis team and author of the report. "The care service sector urgently requires the introduction of a differentiated minimum wage as a critical measure to address the pressing issues of manpower shortage and cost burdens."

The government has revealed plans for a pilot project for foreign domestic workers, set to commence in June of this year. However, anticipation arises for potential opposition from the labor community, particularly concerning the implementation of differential minimum wages.


이동훈 기자 dhlee@donga.com