Korea’s minimum wage: how it is set and what it is now

This guide is for anyone living or working in Korea — expats, foreign workers, part-timers, and employers — who needs to understand Korea’s minimum wage. The short answer: as of 1 January 2026, the legal minimum is 10,320 won per hour, and a full-time worker on that wage earns at least 2,156,880 won per month. The rate for 2027 has already been set at 10,700 won per hour (effective 1 January 2027), decided by the Minimum Wage Commission in July 2026.

Calculator: Korea Severance Pay Calculator — work out your severance pay (toejikgeum) from your start date and last three months’ pay.

How it works

Korea sets its minimum wage through an independent government body called the Minimum Wage Commission (최저임금위원회, choejeoimgeum wiwonhoe). The Commission operates under the Ministry of Employment and Labor and has 27 members: nine representing workers, nine representing employers, and nine public-interest members who are independent experts. Because the three groups each hold equal votes, the public-interest members typically break deadlocks.

The process follows a fixed calendar each year.

• April – May: The Ministry of Employment and Labor formally requests the Commission to begin deliberations for the following year.
• May – July: The Commission holds a series of plenary sessions. Worker and employer sides each submit proposals, debate them, and vote. Sessions can run through the night when no agreement is reached.
• By 29 June (legal deadline): The Commission must submit its recommendation to the Minister of Employment and Labor.
• By 5 August: The Minister formally announces the confirmed rate. Employers and unions may file objections during a brief review window before the announcement.
• 1 January (following year): The new rate takes effect nationwide.

The legal basis is the Minimum Wage Act (최저임금법), which was enacted on 31 December 1986 and took effect on 1 January 1988. The Act requires a single national rate that applies uniformly across all industries, regions, and worker categories. Proposals to set different rates for different sectors — sometimes called industry-based or differentiated minimum wages — have been discussed repeatedly but rejected every year, most recently in July 2026.

Why Korea does it this way

Before 1988, Korea had no statutory minimum wage. Rapid industrialisation in the 1970s and 1980s created a large low-wage workforce, and the government designed the Minimum Wage Act to set a legal floor that would improve living standards and reduce wage inequality.

The tripartite structure — workers, employers, public experts — is deliberately balanced so that no single side can simply impose a number. The public-interest members act as a neutral tie-breaker and are expected to weigh factors such as inflation, the consumer price index, productivity growth, and the ability of small businesses to pay.

Korea applies one uniform rate nationwide. This differs from countries such as the United States, which allows states to set higher local rates. The debate over sector-specific rates (for example, a lower rate for agriculture or a higher rate for construction) continues, but the Commission has declined to adopt them every year since the Act came into force.

The numbers that matter

How the 209-hour month is calculated: A standard Korean full-time job is 40 hours per week. But workers who meet their scheduled days are also entitled to one paid day off per week — called jugyusudang (주휴수당, weekly holiday allowance). That adds 8 paid hours per week. The monthly total is therefore: (40 regular hours + 8 jugyusudang hours) × (365 ÷ 7 ÷ 12) = approximately 208.57 hours, rounded to 209. Every employer must use at least this figure when calculating the minimum monthly pay for a full-time worker.

What it means for you

If you work part-time

The minimum wage applies to every hour you work, regardless of how few hours that is. However, jugyusudang applies only if you work 15 or more hours per week and complete all of your scheduled days in the week. If you work fewer than 15 hours a week, the weekly holiday allowance does not apply. Check your contract carefully: it should state your scheduled weekly hours and whether jugyusudang is included or listed separately on your payslip.

If you are a foreign worker

The minimum wage applies equally to all workers in Korea regardless of nationality or visa type. This includes E-9 visa holders (non-professional employment, typically in agriculture, manufacturing, or fisheries) and D-2 visa holders (students with part-time work permission). Employers cannot use deductions for accommodation, food, or any fees to bring your effective pay below the minimum. If you believe your employer is paying below the legal minimum, you can file a complaint with the nearest branch of the Ministry of Employment and Labor at no cost.

If you employ staff

Paying below the minimum wage is a criminal offence in Korea, carrying fines of up to 20 million won or imprisonment of up to three years under the Minimum Wage Act. Review payslips to confirm that the monthly total — including jugyusudang for eligible workers — meets the 2,156,880-won floor for 2026. Plan ahead: the 2027 rate of 10,700 won per hour (monthly: 2,236,300 won) takes effect on 1 January 2027.

If you are monitoring Korea’s economy

Minimum wage decisions are one signal in Korea’s broader labour market. The 2026 increase of 2.9% was modest by historical standards. The 2027 increase of 3.7% was set against a backdrop of continuing small-business pressure for sector-specific rates and increased automation in food service and retail. For official current figures, verify at the Minimum Wage Commission website (minimumwage.go.kr) or the Ministry of Employment and Labor (moel.go.kr).

FAQ

Does the minimum wage apply during a probationary period?

Yes, with a limited exception. Employers may pay a probationary worker as little as 90% of the minimum wage — that is, 9,288 won per hour in 2026 — but only for the first three months of employment and only if the worker is on an open-ended (permanent) contract. Fixed-term and part-time workers must receive the full minimum from day one.

What if my employer includes meals or housing in my pay package?

Employers may count certain non-cash benefits toward the minimum wage, but only within strict limits set annually by the Minimum Wage Commission. For 2026, the maximum deductible value for meals is 228,350 won per month and for accommodation is 96,560 won per month (check the current figures at the Ministry of Employment and Labor, as these are revised each year). Benefits above those caps, and all other deductions, cannot reduce your cash pay below the minimum.

What happens if the Commission cannot agree?

If the worker and employer sides cannot reach agreement, the public-interest members cast the deciding vote. This has been the most common outcome in recent years. The legal deadline still applies: the Commission must submit a figure to the Ministry by 29 June regardless. The Ministry can ask for a review but must announce the final rate by 5 August. There is no provision for carrying over the previous year’s rate if the process runs late — the Commission must produce a number.

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