2026 Minimum Wage in Korea: Hourly Rate, Monthly Salary & Penalties Explained

What Is Korea's 2026 Minimum Wage?

The Minimum Wage Commission (최저임금위원회) announces the following year's minimum wage by August 5 each year under Article 8 of the Minimum Wage Act (최저임금법 제8조). The minimum wage applicable in 2026 is ₩10,030 per hour. Based on a 40-hour workweek, the monthly equivalent (including weekly holiday allowance (주휴수당), calculated at 209 hours per month) is ₩2,096,270. All workplaces must pay at least this amount; any employment contract that falls below this threshold is void to that extent under Article 6, Paragraph 3 of the Minimum Wage Act (최저임금법 제6조 제3항).

Note for foreign workers: Your employment contract may specify terms above the statutory minimum, but it cannot go below it.

Who Is Covered?

The minimum wage applies to all workers under the Labor Standards Act (근로기준법), regardless of industry, business size, or employment type. Regular full-time employees, part-time workers, short-hour workers, and foreign workers are all equally protected.

However, a reduced rate may be applied with authorization from the Minister of Employment and Labor under Article 7 of the Minimum Wage Act (최저임금법 제7조):

Probationary workers: Where a fixed-term contract of one year or more has been concluded and the worker is on probation, 90% of the minimum wage may be applied for up to 3 months from the start of probation. This reduction does not apply to simple manual labor positions.
Workers with significantly reduced work capacity due to mental or physical disability: A separate authorization procedure is required.

Scope of Inclusion: Which Allowances Count Toward the Minimum Wage?

Not all wage components are counted when determining minimum wage compliance. Under Article 6, Paragraph 4 of the Minimum Wage Act (최저임금법 제6조 제4항), the following items are excluded from the calculation:

Wages not paid regularly at least once a month (however, the portion of bonuses exceeding 15% of the monthly minimum wage is included)
Welfare-related payments such as meal allowances, transportation allowances, and accommodation allowances (the portion exceeding 3% of the monthly minimum wage is included)
Overtime, night-shift, and holiday work allowances and other allowances for work beyond scheduled hours

For example, if a base salary appears low but meal allowances or bonuses make the total look sufficient, the applicable scope of inclusion must be carefully reviewed.

Penalties for Minimum Wage Violations

An employer who fails to pay the minimum wage is subject to imprisonment of up to 3 years or a fine of up to ₩20 million under Article 28 of the Minimum Wage Act (최저임금법 제28조). Additionally, an employer who fails to notify workers of the minimum wage amount in writing may be subject to a fine for negligence (과태료) of up to ₩1 million under Articles 11 and 31 of the same Act (동법 제11조, 제31조).

Workers may file a complaint or report regarding wage arrears or minimum wage violations with the regional office of the Ministry of Employment and Labor or through the Ministry of Employment and Labor's online civil complaint portal (고용노동부 민원마당).

Calculate Your Actual Take-Home Pay

Receiving the minimum wage does not mean that exact amount will be deposited into your account. Deductions are made for the four major social insurance contributions (국민연금·건강보험·고용보험·산재보험 — National Pension, Health Insurance, Employment Insurance, and Industrial Accident Compensation Insurance) as well as income tax and local income tax. To find out exactly how much is deducted from your monthly pay, use the annual salary take-home pay calculator at Bylaw (workbylaw.com). Enter your hourly rate and working hours to instantly see the deduction breakdown by item and your final take-home amount.

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