Minimum Wage for this Year, Jan. - Dec 2010

This year’s increase rate is the lowest since the financial crisis and a huge gap between labor and management forced
it to be decided by votes.


This year’s minimum wage is set at 4,110 won (monthly 858,900 won based on a 40-hour workweek system), up 2.75% from this year’s rate.

The Minimum Wage Council convened an all-member meeting from 7 pm on June 29 and representatives of unions and employers waged a tug of war between their proposals and early in the morning on June 30, the council members cast a vote on the mediation proposal made by public-interest members.

This year’s minimum hourly rate, which is up 2.75% from this year’s 4,000 won, is the lowest rise since the financial crisis in 1998 except from September 1998 to August 1999, when the hike rate was only 2.7%. The minimum wage increase rate for last year was 6.1% and given the current inflation rate hovers at around 3%, this year’s real minimum wage is actually slightly cut down.

The minimum wage negotiation this year hit the wall from the beginning due to a stark contrast in proposals between unions and employers as issues such as low-income workers’ right to survive and shortage of wage payment capacity of smaller businesses got entangled amidst an economic crisis.

The original minimum hourly rates proposed by labor and management sides were 5,150 won (28.7% increase) and 3,770 won (5.8% decrease), respectively. The proposals made by labor and management in the last 7th round full-member meeting were 4,800 won and 3,840 won, respectively, showing a little progress.

Unions demanded that as social security is insufficient, minimum wage should be at least half of the average wage of the total workers. In contrast, employers called for a cut-down of minimum wage for the first time since the minimum wage system was introduced in 1988, insisting that since minimum wages have continuously grown and small and micro businesses cannot afford the labor cost as a result of implications of economic recession, employment insecurity, therefore, will be brought about.

Such a wide position gap led the Minimum Wage Council to determine this year’s minimum wage by voting rather than consensus last year, which is different from the other year’s case. The agreed minimum wage level will be confirmed and announced by Labor Minister within 90 days.

At the same time, an intensive review on the proposed bill on the revision of the Minimum Wage Act is scheduled during the fall plenary session of the National Assembly, heating up a controversy over improvement of the minimum wage system between labor and management.

According to the revision bill of the government and the ruling party, minimum wage security level will be more lowered than the current one including: ▲ introduction of regionally different minimum wages; ▲ extension of the probation period of probational workers; ▲ reduction of the minimum wage for senior workers aged 60 and over; and ▲ counting the cost of food and accommodation provided by employers in the minimum wage. Until now, food and accommodation fees have not been allowed to be deducted from the minimum wage and employees have been guaranteed full minimum wage.

- published by the KOILAF

(source: http://www.molab.go.kr/english/dont_miss/faq_view.jsp?idx=138)

thanks sa information.... mabuhay ....!

tnx kabayang dothmatrix,,,,,keep on posting...happy new year

maraming salamat sa info po..keep it up..