The range for next year's minimum wage talks has narrowed to 10,600 won to 10,860 won per hour. That is 2.7% to 5.25% higher than this year's minimum wage.
At the 14th plenary meeting of the Minimum Wage Commission held at the Government Complex Sejong on the 14th, public interest members presented a "deliberation facilitation range" to narrow the gap between labor and management.
The deliberation facilitation range is the minimum wage review band that public interest members propose, taking into account both sides' demands and economic indicators, when a labor-management agreement is difficult. Labor and management submit additional revised proposals within this range and set the final amount through agreement or a vote.
Public interest members said the lower limit of 2.7% reflects this year's consumer price inflation outlook of 2.7%. The upper limit of 5.25% was calculated by adding the average of this year's economic growth forecasts of 2.6% and 2.5% from the Bank of Korea and the Korea Development Institute (KDI), which is 2.55%, to the two institutions' consumer price inflation outlook of 2.7%.
Earlier in the meeting, the employer side proposed 10,550 won per hour and the worker side proposed 11,150 won per hour as the 10th revised minimum wage plans. The deliberation facilitation range is 50 won higher than the employer side's proposal and 290 won lower than the worker side's proposal.
Going forward, the employer and worker sides will present revised proposals within this range, and they plan to decide next year's minimum wage through agreement or a vote.