What Is the Minimum Wage Commission? How Korea's 2026 Minimum Wage Is Decided

What Is the Minimum Wage Commission?

Every summer, the Minimum Wage Commission (최저임금위원회) takes center stage in the news as the body that determines Korea's minimum wage. Established under Article 12 of the Minimum Wage Act (최저임금법 제12조) as an independent deliberative and decision-making body under the Ministry of Employment and Labor, it is the statutory institution that sets the minimum wage to be applied in the following year.

Commission Composition: A Tripartite Structure

The Minimum Wage Commission consists of 9 workers' representatives, 9 employers' representatives, and 9 public-interest representatives, for a total of 27 members (Article 14 of the Minimum Wage Act, 최저임금법 제14조). Workers' representatives are nominated by national-level trade unions, employers' representatives by business organizations, and public-interest representatives are appointed by the Minister of Employment and Labor with the consent of both labor and management sides. The term of office is 3 years and members may be reappointed.

The public-interest representatives effectively hold the casting vote. When labor and management are deadlocked, the direction in which the public-interest representatives vote often determines the final outcome.

Deliberation and Decision Procedure

The minimum wage is determined in the following sequence:

Request for deliberation: The Minister of Employment and Labor requests deliberation from the Commission by March 31 each year.
Plenary session deliberation: Both sides present their proposed figures and exchange multiple revised proposals through negotiation.
Vote: A resolution is passed within 90 days of the request date, requiring attendance by a majority of registered members and approval by a majority of those present.
Official announcement: The Minister determines and officially announces the minimum wage by August 5 each year; it takes effect from January 1 of the following year.

How Was the 2026 Minimum Wage Decided?

Following this process, the 2026 minimum wage has been set at ₩10,320 per hour. Based on a 40-hour workweek, the monthly equivalent is ₩2,156,880 (209 hours including paid weekly holidays). Under Article 6 of the Minimum Wage Act (최저임금법 제6조), employers must pay at least this amount; violations may result in imprisonment of up to 3 years or a fine of up to ₩20 million (Article 28 of the Minimum Wage Act, 최저임금법 제28조).

Note for foreign workers: Your employment contract may specify wages above the statutory minimum, but it cannot fall below it. Always check your contract against the current minimum wage.

Minimum Wage Inclusion Scope — Check This Carefully

Following the 2019 amendment to the Minimum Wage Act, certain portions of regular bonuses and welfare benefits are now included within the minimum wage calculation scope (산입 범위). Specifically, the portion of monthly regular bonuses that exceeds a set percentage of the monthly minimum wage equivalent, and the portion of cash welfare benefits that exceeds a set percentage, are counted toward the minimum wage. However, temporary or one-off allowances that are not ordinarily paid are not included.

Check Whether Your Pay Meets the Minimum Wage

If you are unsure whether your wages meet the minimum wage standard, use the salary take-home calculator at Workbear (workbear.kr). Enter your hourly wage, monthly salary, or annual salary to instantly check your take-home pay after four major social insurance deductions and whether the minimum wage is being met. If a wage dispute arises, you can also use the complaint filing feature on the same site.

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

Frequently Asked Questions

When does the Minimum Wage Commission begin its deliberations?

Under Article 8 of the Minimum Wage Act 최저임금법 제8조 , the Minister of Employment and Labor must request deliberation from the Minimum Wage Commission by March 31 each year. The Commission must pass a minimum wage proposal and submit it to the Minister within 90 days of receiving that request, and the Minister must determine and officially announce the minimum wage by August 5 each year.

Can an objection be filed against the Minimum Wage Commission's decision?

Under Article 9 of the Minimum Wage Act 최저임금법 제9조 , a workers' organization or an employers' organization may file an objection with the Minister of Employment and Labor within 10 days of the date of the official announcement. If the Minister finds the objection to have merit, the Minister may request the Commission to conduct a re-deliberation.

How much is the 2026 minimum wage when converted to a monthly salary?

The 2026 minimum wage is ₩10,320 per hour. Based on a 40-hour workweek 209 hours per month including paid weekly holidays , this converts to ₩2,156,880 per month. This figure is before tax; the actual take-home amount after deduction of the four major social insurance contributions will be lower.

Does the minimum wage apply equally to all workers?

In principle, the minimum wage applies equally to all workers regardless of industry, region, or employment type. However, under Article 7 of the Minimum Wage Act 최저임금법 제7조 , probationary workers on a fixed-term contract of one year or more, within the first 3 months of the probationary period may be paid 10% less than the minimum wage. Workers in simple manual labor are excluded from this reduction.