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Draft Plan to Overhaul Minimum Wage Decision System Announced

Written: 2019-01-07 17:19:32Updated: 2019-01-07 19:38:35

Draft Plan to Overhaul Minimum Wage Decision System Announced

Photo : YONHAP News

Decisions on how much to raise the country’s minimum wage level will be made through a dual-stage process as the government is seeking to reduce social costs stemming from controversy surrounding the issue. 

Employment and Labor Minister Lee Jae-kap on Monday announced a draft plan to overhaul the decision-making process on minimum wage for the first time in 30 years, focused on the creation of an additional committee. 

Under the plan, the incumbent committee on minimum wage will be divided into two committees, one tasked with determining the range of possible hikes and the other on making a final decision. 

The range-setting committee will consist of nine experts recommended by labor, management and the government. 

The decision-making committee will maintain a similar structure to the current minimum wage committee and be made up of representatives of workers and companies as well as common good advocates recommended by the government. How public interest advocates will be selected, however, will be changed. 

To reduce potential controversy over the scope of hikes, the government will also reform how to decide minimum wage levels. 

From now on, economic situations including the employment rate and economic growth will also be factored into the decision, as well as social security benefits linked with the minimum wage. 

Addressing growing social conflicts over minimum wage levels, Minister Lee said the government will launch discussions to come up with ways to determine minimum wage in a reasonable, objective and fair manner and make decisions based on public consensus.

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