Next Year's Minimum Wage: 1,410 Won Gap Between Labor and Management Proposals Signals Difficult Agreement

The difference between the proposed amounts for next year's minimum wage by labor and management has reached 1,410 won, making agreement difficult. Both sides submitted their third revised proposals during a full session of the Minimum Wage Committee, but they have yet to bridge their significant differences in stance. The proposed minimum wage levels are drawing attention in relation to the domestic economic situation. An hourly minimum wage of 11,800 won represents a 1.73% increase from the previous year, while 10,390 won represents a 0.11% increase. The gap in positions between economic stakeholders remains wide.

Labor argues that the minimum wage must be raised to prevent a decline in real wages due to inflation and to stabilize the livelihoods of low-wage workers. Labor aims to boost the income and stabilize the lives of low-wage workers through minimum wage increases. Considering the recent high inflation, they maintain that an increase is necessary even to prevent a drop in real wages.

Management, citing an economic slowdown and increased labor cost burdens, demands that the rate of increase be reduced or frozen, emphasizing the need to consider the difficult business environment for small business owners and SMEs. Management expresses concerns over the slowing economic growth and mounting labor costs, calling for restraint or a freeze on increases and highlighting the need to factor in the challenging operating conditions for small businesses and SMEs.