Labor and management proposed 10,770 won and 10,640 won per hour, respectively, as the 12th revised offer in next year's minimum wage talks.
Labor and management made the proposal at the 14th plenary meeting of the Minimum Wage Commission held at the Government Sejong Complex on Jul. 14.
The labor side's demand is 4.4% higher than this year's minimum wage of 10,320 won, and the management side's demand is 3.1% higher. Compared with the 11th revised offer submitted earlier, labor lowered its figure by 50 won, while management raised its figure by 20 won.
As the lower end of the increase rate proposed by management exceeds 3%, next year's minimum wage is expected to be finalized with at least a 3%-range increase.
Labor and management have presented revised offers 10 times from the end of last month through today, but failed to narrow the gap to below 600 won. In response, the public-interest members of the Minimum Wage Commission proposed 10,600–10,860 won per hour as a "deliberation facilitation range."
The deliberation facilitation range is the scope for minimum wage deliberations that public-interest members present, taking into account both sides' demands and economic indicators, when a labor-management agreement is difficult. Within this range, labor and management must submit additional revised offers and set the final amount through agreement or a vote.
After the facilitation range was presented, labor and management successively submitted the 11th and 12th revised offers, narrowing the gap from 600 won to 130 won.
Under the Minimum Wage Act, the Minister of the Ministry of Employment and Labor (MOEL) must issue the final notice of next year's minimum wage by Aug. 5. Considering the administrative procedures required before then, the Minimum Wage Commission is expected to hold marathon talks today to decide the minimum wage.