Cabinet endorses revision to minimum wage law
- 6 years ago
The cabinet held a meeting this morning, endorsing several laws, including.... changes to the minimum wage law.
And we have our Kim Hye-sung on the line for us with the latest on this...
So Hye-sung, can you tell us more about what came out of the meeting?
Hi Jiyoon, the cabinet meeting chaired by Prime Minister Lee Nak-yeon endorsed a revision to the minimum wage law this morning.
The amendment includes counting some regular bonuses and welfare benefit allowances when calculating the minimum wage.
This comes after the National Assembly passed the revision last week.
Korean companies have demanded the inclusion of some bonuses and welfare allowances as it reduces the burden of the minimum wage hikes on businesses.
This January, Korea raised the hourly minimum wage by over 16 percent to 7-thousand-530 Korean won, or around seven U.S. dollars per hour, the biggest jump in nearly two decades.
Right, I guess businesses will welcome the news,... but not labor groups or employees.
Yes, labor groups have protested against the revision since last week when it passed the National Assembly. They have criticized the revision, saying it offsets the effect of a rise in the legal wage threshold by including bonuses and benefits in its calculation.
As we speak, labor unions are protesting in front of the Seoul Government Complex, where the cabinet meeting was held,..urging President Moon Jae-in to veto the legislation.
The Federation of Korean Trade Unions says the passage of the legislaton would mean the government has given up on income-led growth.
At the cabinet meeting, Prime Minister Lee Nak-yeon said the minimum wage hike and shorter working hours are policies to help improve workers' quality of life, but acknowledged that they are contentious issues and there may be negative side effects in the early stages, but that the government will strive to come up with measures to minimize the negative effects.
Now that it has passed the cabinet meeting, it will be reported in the official gazette once it gets President Moon's approval.
Back to you, Ji-yoon
And we have our Kim Hye-sung on the line for us with the latest on this...
So Hye-sung, can you tell us more about what came out of the meeting?
Hi Jiyoon, the cabinet meeting chaired by Prime Minister Lee Nak-yeon endorsed a revision to the minimum wage law this morning.
The amendment includes counting some regular bonuses and welfare benefit allowances when calculating the minimum wage.
This comes after the National Assembly passed the revision last week.
Korean companies have demanded the inclusion of some bonuses and welfare allowances as it reduces the burden of the minimum wage hikes on businesses.
This January, Korea raised the hourly minimum wage by over 16 percent to 7-thousand-530 Korean won, or around seven U.S. dollars per hour, the biggest jump in nearly two decades.
Right, I guess businesses will welcome the news,... but not labor groups or employees.
Yes, labor groups have protested against the revision since last week when it passed the National Assembly. They have criticized the revision, saying it offsets the effect of a rise in the legal wage threshold by including bonuses and benefits in its calculation.
As we speak, labor unions are protesting in front of the Seoul Government Complex, where the cabinet meeting was held,..urging President Moon Jae-in to veto the legislation.
The Federation of Korean Trade Unions says the passage of the legislaton would mean the government has given up on income-led growth.
At the cabinet meeting, Prime Minister Lee Nak-yeon said the minimum wage hike and shorter working hours are policies to help improve workers' quality of life, but acknowledged that they are contentious issues and there may be negative side effects in the early stages, but that the government will strive to come up with measures to minimize the negative effects.
Now that it has passed the cabinet meeting, it will be reported in the official gazette once it gets President Moon's approval.
Back to you, Ji-yoon