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Gov't to Exclude Special Holidays in Calculating Minimum Wage

Written: 2018-12-24 16:36:39Updated: 2018-12-24 18:30:09

Gov't to Exclude Special Holidays in Calculating Minimum Wage

Photo : YONHAP News

The government has decided to include weekly legal holidays in calculating the minimum wage, while exempting special holidays agreed between labor unions and management.

Following Monday's Cabinet meeting, Labor Minister Lee Jae-kap said the decision to exclude the special holiday hours reflected concerns from businesses that they could end up violating minimum wage laws.

Special holidays can be national holidays, lunar New Year holidays, Chuseok holidays or Saturdays if labor and management agree to designate them. 

The government planned to pass an ordinance that will include both legal weekly holidays and special holidays in calculating the minimum wage, but decided to produce a revision that will exclude special holidays from working hours. 

The government made the decision to address concerns that recognizing both holidays as working hours in calculating the minimum wage would increase the burden on businesses.  

While the government will allow up to a six-month period for employers to voluntarily revise their wage systems, the minister said some businesses may require an extension due to their seasonal work schedules.  

The revised ordinance bill will be subject to Cabinet approval next Monday.

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