Monthly 2024FY wage should be more than 2.07mil.won in Korea; Minimum Wage Act

The Minimum Wage Commission in Korea has announced that the hourly minimum wage for 2024 will be set at 9,860 won ($7.8), reflecting a 2.5% increase from 2023. With the new rate, the monthly pay for employees will see a slight rise, reaching nearly 2.07 million won ($1,638), up from this year’s 2.02 million won ($1,598). This minimum wage is based on the 40 hours work a week, and incl. weekly allowance.

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The minimum wage system aims to guarantee the minimum level of wages for all workers in Korea, thereby contributing to the stability of workers’ lives and the qualitative improvement of labor force, and ultimately to the sound development of the national economy. Therefore, it is important for foreign business owners to comply with the domestic minimum wage law as well.

The decision to raise the minimum wage for 2024 was made following an overnight marathon debate and a record 110 days of discussion since Minister of Employment and Labor Lee Jung-sik officially requested the commission’s review of the wage on March 31. The minimum wage saw its smallest jump since 2021 when it was upped by a record low of 1.5 percent amid the Covid-19 pandemic. The new minimum wage did not break the 10,000-won threshold, although businesses say the raise will be challenging for small and mid-sized businesses in particular amid weak exports.

In conclusion, the minimum wage for 2024 in Korea has been set at 9,860 won per hour, reflecting a 2.5% increase from 2023. The minimum wage system aims to guarantee the minimum level of wages for all workers in Korea, thereby contributing to the stability of workers’ lives and the qualitative improvement of labor force, and ultimately to the sound development of the national economy. Foreign business owners must also comply with the domestic minimum wage law. The decision to raise the minimum wage for 2024 was made following an overnight marathon debate and a record 110 days of discussion since Minister of Employment and Labor Lee Jung-sik officially requested the commission’s review of the wage on March 31. The new minimum wage did not break the 10,000-won threshold, although businesses say the raise will be challenging for small and mid-sized businesses in particular amid weak exports.