South Korea to raise minimum wage by 1.5% next year in smallest hike ever

[SEOUL] South Korea said on Tuesday it planned to raise the national minimum hourly wage by the smallest amount on record for 2021, as the coronavirus pandemic hit businesses and labour markets.

The Minimum Wage Commission agreed on an increase of 1.5 per cent to 8,720 won (S$10) an hour for next year, smaller than this year's hike of 2.87 per cent and the least of all time.

Such an increase would mean a combined hike of 34.8 per cent in the hourly minimum wage since labour-friendly President Moon Jae In took office in 2017, but falls short of his initial promise of an increment of 55 per cent, to 10,000 won, by 2020.

REUTERS

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL