KRW 10,000 hourly payment era to open next year under calculation of weekly holiday & 4 major insurances
Cho Eun Ae | eunae@ | 2018-05-16 11:03:12

According to the analysis on May 15, the minimum hourly wage will actually exceed KRW 10,000 from next year.

According to the Korea Economic Research Institute on May 15, the minimum wage per capita is KRW 16,777 per month, which is 41.7 % higher than the official rate of KRW 7,530.

The current minimum wage system includes only basic salary plus some fixed salary. Therefore, it is pointed out that regular bonuses and various allowances are not paid. For this reason, even if the actual wage paid to the employer by the employer is higher than the minimum wage, it will not meet the minimum wage, or the large-sized worker will be included in the minimum wage.

There is also a signal that the employment market is shrinking due to the sharp increase in the minimum wage. Especially, in the food industry and bars, the number of stable daily workers has decreased and the number of temporary daily workers who are contract workers is increasing.

According to the results of the survey on the labor force of the state, which is published in the national statistics portal operated by the National Statistical Office, the number of regular workers engaged in restaurants and grocery stores decreased by 1,598 persons (0.2%) in the first quarter of this year. It is the first time in seven years and three months since the fourth quarter of 2010 (-363 employees) that the number of regular workers in restaurants and pubs has decreased. Despite, the rate of decline is low at 0.2%, it is unusual considering that food and liquor businesses have increased the number of regular workers until recently. In the first two quarters of 2016, more than 60,000 people have increased, and more than 20,000 people have increased in the first and second quarters of last year. The change in workers` trends in the service industry, including expenses, cleaning, and other services, was more pronounced. Commercial workers in this sector went down by 11,595 in the first quarter of this year from the same period last year. It is a big decline in 4 years and 9 months since the second quarter of 2013 (-1722). Meanwhile, temporary daily workers decreased from 2016 to last year, and they were mixed with 3078 people in the first quarter. More than half of the foreign-invested enterprises have chosen `labor policies` because they are difficult to operate in Korea.

Han Kyung-yeon inquired the research and research of 120 foreign-invested companies with more than 100 Korean employees. As a result, 6 out of 10 respondents indicated that labor policies such as shortening working hours and raising minimum wages are the biggest burden 65.0%).

"The minimum hourly wage is linked to the overall wage system, so if the minimum wage is raised, both statutory labor costs and regular bonuses will rise," said Kyung Kwang, The wage gap between small and medium enterprises will increase as a result of the minimum wage increase. "

By Cho Eun Ae eunae@


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