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 10,200 won per hour, a 16.3% increase from this year, citing high inflation and the burden of living costs. In contrast, business groups said the minimum wage is already high by international standards and argued that next year's rate should remain at this year's 10,320 won.
The government convenes the Minimum Wage Commission every year to decide the following year's minimum wage, and the plenary session that day was part of that process. The commission is attended by a total of 27 members: 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 sessions going forward. Last year, the commission narrowed differences as labor and management submitted a 10th revised proposal. 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.
Over the past five years, the hourly minimum wage and the year-over-year increase rates were 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.