A 27-member committee, with nine representatives each from workers, employers and government-appointed independent members, held a meeting in the administrative city of Sejong on Tuesday and decided to raise the minimum hourly wage by 3.7 percent from the current 10,320 won to 10,700 won next year.
After both sides failed to reach an agreement despite a series of negotiations in recent weeks, the final proposals were put to a vote. The employers' proposal of 10,700 won per hour passed with 15 votes, while the labor side’s proposal of 10,730 won received 11 votes, with one vote invalid.
The monthly wage based on the newly set minimum wage will be 2.24 million won for a 40-hour workweek, up 79,420 won from this year. The hike is expected to affect around 2.98 million workers.
But both sides remained unsatisfied with the final decision.
Labor groups said, "The increase does not even keep pace with rising prices and feels more like a freeze than a raise."
The Federation of Korean Trade Unions (FKTU) also called the decision "deeply disappointing," saying it failed to reflect the struggles of low-wage workers and the rising cost of living.
The FKTU also expressed regret that its efforts to extend minimum wage coverage to platform workers including delivery workers and riders, had fallen through. It vowed to continue fighting to protect low-wage workers' right to a livelihood.
But business groups said the increase would put even more strain on small business owners.
The Korea Enterprises Federation (KEF) said in a statement that the minimum wage should have been frozen, citing difficult conditions faced by small and midsized companies and self-employed business owners who can barely afford higher labor costs.
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