The minimum hourly wage for next year is set at KRW 10,700, up 3.7% from this year. Shown is a plenary meeting of the Minimum Wage Commission at Government Complex-Sejong in Sejong. (Yonhap News)

By Aisylu Akhmetzianova

The minimum hourly wage for next year is set at KRW 10,700, up 3.7% from this year and the largest increase since 5% in 2023.

The Minimum Wage Commission on July 14 announced this after approving the hike at its plenary meeting held at Government Complex-Sejong in Sejong after reaching an agreement with labor, management and public interest groups.

Next year's minimum hourly wage is KRW 380 higher than KRW 10,320 this year.

Based on a 40-hour workweek and 209 hours per month, the wage hike translates into a monthly salary of KRW 2,236,300.

The increase will affect an estimated 660,000 workers (impact rate 3.8%) based on a study of working conditions by employment type. A supplementary survey on the economically active population calculated the number of affected workers at 2.97 million (13.3%).

Under the Minimum Wage Act, the commission submits the resolution on the hike to the Ministry of Employment and Labor, which finalizes and officially announces it by Aug. 5.

The new wage will take effect on Jan. 1.

aisylu@korea.kr