2026 Minimum Wage Calculator Guide: How to Check If Your Salary Is Correct

2026 Minimum Wage: Is It Being Applied Correctly to Your Pay?

Every year when a new minimum wage is announced, many workers wonder whether their salary meets the legal minimum. It might seem as simple as comparing hourly rates, but in practice there are several factors to consider: the scope of wages counted toward the minimum (산입 범위), contractual working hours (소정근로시간), and whether the weekly holiday allowance (주휴수당) is included.

Note for foreign workers: Your employment contract may specify terms different from the statutory minimum, but the statutory minimum wage always applies regardless of what the contract says.

What Is the Minimum Wage?

The minimum wage is a system established under Article 1 of the Minimum Wage Act (최저임금법 제1조) by which the government sets a floor on wages and compels employers to pay at least that amount. It applies to all workplaces employing one or more workers, and regular employees, non-regular employees, part-time workers, and foreign workers are all equally protected.

An employer who violates the minimum wage may face imprisonment of up to 3 years or a fine of up to 20 million won under Article 28 of the Minimum Wage Act (최저임금법 제28조).

How to Calculate the Minimum Wage

1. Hourly Rate → Daily Wage

Daily wage = Minimum hourly rate × Daily contractual working hours

For example, if you work 8 hours a day, multiply the minimum hourly rate by 8.

2. Hourly Rate → Monthly Salary

For monthly-salaried workers, you cannot simply multiply the hourly rate by working hours alone, because the weekly holiday allowance (주휴수당) must be included.

For a standard 40-hour week (Monday–Friday, 8 hours per day), the monthly converted hours are calculated as follows:

Monthly hours = (Weekly contractual hours + Weekly holiday hours) × (365 ÷ 7 ÷ 12)
              = (40 hours + 8 hours) × 4.345
              ≈ 209 hours

Therefore, the basic formula is: Monthly minimum wage = Minimum hourly rate × 209 hours.

Scope of Wages Counted Toward the Minimum Wage: Which Allowances Are Included?

Following the 2019 amendment to the Minimum Wage Act, certain allowances are included in the scope of wages counted toward the minimum wage (산입 범위). Under the current rules, the following are included:

The following are excluded:

Therefore, even if your base salary is low, you must carefully check whether the total of all applicable allowances meets or exceeds the minimum wage.

How to Check Whether Your Pay Falls Below the Minimum Wage

  1. From your pay stub (급여명세서), add up only the items that fall within the minimum wage scope.
  2. Divide the total by your monthly contractual working hours (typically 209 hours).
  3. Check whether the resulting hourly rate is at or above the 2026 statutory minimum hourly wage.

If the calculation feels complicated, try the Bylaw (workbylaw.com) salary take-home calculator. It lets you quickly see your after-tax take-home pay and check whether your salary meets the minimum wage standard.

If You Suspect a Minimum Wage Violation

If you confirm that your pay falls below the minimum wage, you can file a complaint (진정) with the Ministry of Employment and Labor Customer Consultation Center (고용노동부 고객상담센터, dial 1350, no area code required) or your local Regional Employment and Labor Office (지방고용노동청). Once a complaint is filed, the employer must retroactively pay the shortfall and may face criminal penalties.

You can use the Bylaw (workbylaw.com) AI complaint drafting feature to easily create a draft complaint without dealing with complex forms.

This article is for informational purposes only and does not constitute legal advice. For specific cases, consult a certified labor attorney (노무사) or lawyer.