Gov't discusses revisions to S. Korea's minimum wage at cabinet meeting
- 5 years ago
정부 "최저임금 산정에서 약정휴일은 제외...수정안 마련키로"
Raising the minimum wage.
One of the key policies of the Moon Jae-in administration.
Carried out earlier this year, and there are plans for a double digit hike in 2019.
But as the move was met with much criticisms, the government announced some relevant revisions to the law.
Kim Hyesung outlines what they are.
The South Korean government says it will include weekend work in the calculation of the minimum wage, but exclude contracted holidays from working hours.
"The Ministry of Employment and Labor has decided to make revisions to the Minimum Wage Act, and include paid weekend work hours on top of the existing fixed work hours."
This announcement comes despite opposition from the private sector who claim the move would make labor costs even more of a burden.
The government raised the minimum wage by 16-point-four percent on-year in 2018, and another eleven percent rise is slated for next year.
The minimum wage is determined by calculating an hourly rate.
Most Korean companies recognize eight hours over the weekend as weekend working hours for employees who work five days a week.
To calculate the minimum wage, the monthly wage is divided by the number of working hours to get the actual paid hourly wage.
So including the weekend work hours of around 35 hours a month, would mean that the same monthly wage would work out as a lower hourly wage... resulting in some companies failing to meet the figure of 8-thousand-350 Korean won, or seven-point-four U.S. dollars an hour, the minimum wage set for 2019.
To alleviate the private sector's concerns, the labor minister said
"At the cabinet meeting, we've decided to add revisions to exclude contracted holidays from the minimum wage calculation."
Contracted holidays are not legal holidays and refer to holidays such as family events or company foundation day....which are agreed upon by the labor and management in work contracts.
The government will also provide a grace period of up to six months so companies can adapt to the changes in the minimum wage.
Policymakers said they will finalize the revision and introduce it at the cabinet meeting next Monday.
Kim Hyesung, Arirang News.
Raising the minimum wage.
One of the key policies of the Moon Jae-in administration.
Carried out earlier this year, and there are plans for a double digit hike in 2019.
But as the move was met with much criticisms, the government announced some relevant revisions to the law.
Kim Hyesung outlines what they are.
The South Korean government says it will include weekend work in the calculation of the minimum wage, but exclude contracted holidays from working hours.
"The Ministry of Employment and Labor has decided to make revisions to the Minimum Wage Act, and include paid weekend work hours on top of the existing fixed work hours."
This announcement comes despite opposition from the private sector who claim the move would make labor costs even more of a burden.
The government raised the minimum wage by 16-point-four percent on-year in 2018, and another eleven percent rise is slated for next year.
The minimum wage is determined by calculating an hourly rate.
Most Korean companies recognize eight hours over the weekend as weekend working hours for employees who work five days a week.
To calculate the minimum wage, the monthly wage is divided by the number of working hours to get the actual paid hourly wage.
So including the weekend work hours of around 35 hours a month, would mean that the same monthly wage would work out as a lower hourly wage... resulting in some companies failing to meet the figure of 8-thousand-350 Korean won, or seven-point-four U.S. dollars an hour, the minimum wage set for 2019.
To alleviate the private sector's concerns, the labor minister said
"At the cabinet meeting, we've decided to add revisions to exclude contracted holidays from the minimum wage calculation."
Contracted holidays are not legal holidays and refer to holidays such as family events or company foundation day....which are agreed upon by the labor and management in work contracts.
The government will also provide a grace period of up to six months so companies can adapt to the changes in the minimum wage.
Policymakers said they will finalize the revision and introduce it at the cabinet meeting next Monday.
Kim Hyesung, Arirang News.