2027 Minimum Wage in Korea: Decision Timeline & Application Rules Explained

Why You Need to Know About the 2027 Minimum Wage Now

Every year at this time, searches for "next year's minimum wage" spike sharply. Employers need to plan labor costs, and workers need to verify that their wages meet the legal standard. The 2027 minimum wage has been finalized at 10,700 won per hour (Ministry of Employment and Labor Notice No. 2026-60, issued on August 5, 2026). It takes effect on January 1, 2027 — until December 31, 2026 the 2026 rate of 10,320 won per hour still applies. Understanding the decision process and application rules in advance will make it much easier to respond in practice.

When and How Is the Minimum Wage Decided?

Under Article 8 of the Minimum Wage Act (최저임금법 제8조), the Minister of Employment and Labor must request a deliberation from the Minimum Wage Commission (최저임금위원회) by March 31 each year. The Commission is composed of 27 members — 9 worker representatives, 9 employer representatives, and 9 public-interest representatives — and must determine and publicly announce the minimum wage by August 5. The announced minimum wage takes effect from January 1 of the following year.

The 2027 minimum wage was resolved at ₩10,700 per hour by the Minimum Wage Commission at its 14th plenary session on July 14, 2026, then published as a draft notice (No. 2026-55, July 16) and finalized by Ministry of Employment and Labor Notice No. 2026-60 on August 5, 2026. The decision deadline comes from Article 8(1) of the Minimum Wage Act (최저임금법 제8조 제1항 — by August 5 each year) and the final notice from Article 10(1) of the Minimum Wage Act (최저임금법 제10조 제1항); under Article 10(2) the announced rate takes effect on January 1, 2027. The notice states a monthly equivalent of ₩2,236,300, based on 209 monthly hours including 8 paid weekly holiday hours.

Review: The Current 2026 Minimum Wage Standards

Until the 2027 notice takes effect, the 2026 standards still apply, so it is important to have a clear understanding of them. The minimum wage is announced as an hourly rate and applies to all workplaces and all workers (with limited exceptions for probationary workers). Differentiated application by industry or region is not permitted under current law.

The wage items counted toward the minimum wage are stipulated in Article 6, Paragraph 4 of the Minimum Wage Act (최저임금법 제6조 제4항). As a general rule, only wages paid regularly at least once a month are included, and since January 1, 2024 monthly regular bonuses and cash welfare benefits are counted in full. The phased exclusion rates set by the 2018 amendment's addenda applied through 2023 and have ended.

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

The Relationship Between Weekly Holiday Allowance and the Minimum Wage

One area of frequent confusion in practice is the weekly holiday allowance (주휴수당). Under Article 55 of the Labor Standards Act (근로기준법 제55조), workers whose scheduled weekly working hours are 15 hours or more are entitled to a paid weekly holiday. The weekly holiday allowance must be paid separately from the minimum wage; if it is not included, the actual hourly rate may fall below the minimum wage.

For example, for a worker on a 40-hour week, the monthly wage must be calculated based on 209 hours per month — which includes weekly paid holiday hours (8 hours per week) — in order to satisfy the minimum wage requirement.

Penalties for Minimum Wage Violations

Article 28 of the Minimum Wage Act (최저임금법 제28조) provides that an employer who pays wages below the minimum wage is subject to imprisonment of up to 3 years or a fine of up to 20 million won. In addition, violating the obligation to inform workers of the minimum wage (Article 11 of the Minimum Wage Act / 최저임금법 제11조) carries an administrative fine of up to 1 million won. Violations may be reported by workers filing a complaint with a regional office of the Ministry of Employment and Labor, or investigated by a labor inspector acting on their own authority.

Practical Checklist to Prepare for the 2027 Minimum Wage

Calculate Quickly with Workbear (workbear.kr)

You will likely want to calculate in advance how much your weekly holiday allowance will be under the 2027 rate. Using the Workbear Weekly Holiday Allowance Calculator, you can instantly check your take-home pay including the weekly holiday allowance simply by entering your working hours and hourly rate. If you need help reviewing an employment contract or drafting a complaint, try Workbear's AI features as well.

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