Ahead of the decision on next year's minimum wage, labor groups proposed 12,000 won, while business groups called for a freeze.
At the eighth plenary meeting of the Minimum Wage Commission held at the Government Sejong Complex on the 23rd, labor groups said next year's minimum wage should be 12,000 won per hour, up 16.3% from this year, citing high inflation and the burden of living costs. Business groups, by contrast, said the minimum wage is already high by international standards and argued that this year's minimum hourly wage of 10,320 won should be maintained next year.
The government convenes the commission every year to decide the following year's minimum wage, and the plenary meeting that day was part of that process. A total of 27 attend the commission: nine Labor Commissioners, nine Employer Commissioners, and nine Public Interest Commissioners.
The commission plans to narrow the gap between the two sides through additional plenary meetings going forward. Last year, the commission narrowed differences as labor and management presented a 10th revised plan. Based on the commission's deliberations, the Minister of the Ministry of Employment and Labor (MOEL) finalizes and announces the following year's minimum wage by Aug. 5 each year.
The minimum wage per hour and its year-over-year increase over the past five years are 9,160 won (5.05%) in 2022, 9,620 won (5%) in 2023, 9,860 won (2.5%) in 2024, 10,030 won (1.7%) in 2025, and 10,320 won (2.9%) in 2026.