2022 MINIMUM WAGE SETTLED

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Next year's minimum hourly wage has been set at 9,160 won, up 5.1 percent from this year. But labor and management are neither happy, both arguing their opinions have not been reflected.

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The 2022 minimum wage has been set at 9,160 won per hour. It represents a 5.1% or 440 won increase from this year. Monthly pay would add up to just over 1.9 million won. The Minimum Wage Commission, the wage setting body, unveiled the decision reached through a vote. The minimum wage rose by a double digits percentile for two years including 16% in 2018. This year's figure was up a mere 1.5%, the smallest hike on record. And now, the increase has jumped to the 5 percent range for next year. The higher raise takes into account future economic recovery but pundits say a double digit growth has been suppressed, considering the wage burden affecting the self-employed and small business owners. The minimum wage has been decided but the process has been anything but smooth right up to the final vote. In an effort to expedite negotiations, members of the wage commission representing the general public proposed a mediating figure between 9,030 and 9,300 won. In protest, 4 labor representatives stormed out of the talks citing government failure to keep its 10,000 won wage pledge. In the continuing hours, labor and management failed to reach common ground. Once again, officials representing public interest stepped in and presented a compromise of 9,160 won. This time, the employers side walked out of the talks. However a vote was pushed ahead, and with 23 commissioners in attendance, 13 voted for the 9,160 won figure. Ten abstained with zero opposition. Both labor and management are protesting the decision. The labor side says the wage is far insufficient to ease the income imbalance. Employers argue the wage level does not consider the tough situation small business owners are grappling with amid the pandemic. Following objections raised to the decision, the final rate will be declared by August 5 and take effect from January first next year.