2027 Minimum Wage in Korea: When It's Set & How to Calculate It

2027 Minimum Wage in Korea — Can We Know It Right Now?

Search "minimum wage" on any Korean portal and "2027 minimum wage" appears as an autocomplete suggestion, reflecting just how much interest there is. To get straight to the point: the 2027 minimum wage was decided at 10,700 won per hour by the Minimum Wage Commission on July 14, 2026. It takes effect on January 1, 2027 after the Minister of Employment and Labor issues the official notice. Article 8 of the Minimum Wage Act (최저임금법 제8조) requires the Minister of Employment and Labor to decide and officially announce the following year's minimum wage by August 5 each year. This means the 2027 minimum wage will be officially published in early August 2026.

Check the Current 2026 Minimum Wage Standard First

The rate in effect right now is ₩10,320 per hour — the 2026 minimum wage. Based on a 40-hour work week (209 scheduled monthly working hours), this equals ₩2,156,880 per month. This amount includes base pay and fixed allowances, but welfare benefits such as meal allowances and transportation costs, as well as overtime, night-shift, and holiday pay, are excluded from the minimum wage calculation scope under Article 6, Paragraph 4 of the Minimum Wage Act (최저임금법 제6조 제4항).

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

How Is the Minimum Wage Decided?

The minimum wage is determined through deliberation by the Minimum Wage Commission (최저임금위원회), which consists of 27 members — 9 worker representatives, 9 employer representatives, and 9 public-interest representatives — as stipulated in Article 12 of the Minimum Wage Act (최저임금법 제12조). Typically, both labor and management submit their proposed figures starting in April each year, and after multiple plenary sessions, a vote is taken. The Minister of Employment and Labor then announces the result by August 5. Following an objection period, the new rate takes effect on January 1 of the following year.

What Are the Penalties for Violating the Minimum Wage?

An employer who pays less than the minimum wage faces up to 3 years in prison or a fine of up to ₩20 million under Article 28 of the Minimum Wage Act (최저임금법 제28조). Additionally, failure to post the minimum wage notice at the workplace or to inform workers of the rate is subject to a fine of up to ₩1 million under Article 31 of the Minimum Wage Act (최저임금법 제31조). If you are receiving wages below the minimum wage, you can file a complaint with the Ministry of Employment and Labor customer service center (☎1350) or your local regional labor office.

How to Check Whether Your Monthly Pay Meets the Minimum Wage

You cannot simply look at your total monthly pay. When comparing against the minimum wage, you must identify only the wage items that fall within the minimum wage calculation scope and convert them to an hourly rate. For example, if your monthly pay is ₩2,300,000 and it includes a ₩200,000 meal allowance, whether that meal allowance counts toward the minimum wage comparison depends on whether it falls within the statutory scope. Following the 2019 amendment to the Minimum Wage Act, a portion of regularly paid monthly bonuses and welfare benefits was included in the calculation scope, so it is important to carefully review your employment contract and pay stub.

What to Do Once the 2027 Minimum Wage Is Announced

Once the 2027 minimum wage is confirmed, the following steps are necessary: ① review the wage clauses in employment contracts, ② reflect the new rate in payroll systems, and ③ replace minimum wage notices posted at the workplace. Smaller workplaces in particular can reduce errors by using automated payroll calculation tools.

You can use the annual take-home pay calculator at Workbear (workbear.kr) to instantly check your actual take-home pay after deducting the four major social insurance contributions and income tax from the minimum-wage-based monthly salary. The figures will be updated as soon as the 2027 minimum wage is finalized, so bookmarking the page is recommended.

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