Does my monthly salary match the minimum wage set by the Korean government?

The minimum wage in Korea this year was set at 9,160 won per hour, up 5.1 percent increase from last year. This applies equally to not only Koreans but also foreign residents. But how is the minimum wage calculated? Is the salary I get paid in line with the minimum wage?

In the case of part time jobs

If a part-timer who works 4 hours a day (20 hours a week) from Monday to Friday receives 200,000 won a week, the hourly wage of this part-timer is 10,000 won. It is being paid above the minimum wage.

However, it is a different story if you work 5 days a week and work every week like this, rather than just working 5 days for one time. That's because of ‘weekly leave allowance'.

Weekly leave allowance is money paid by the employer when the employee has worked 15 or more hours in a week. If the above part-timer goes to work without missing a day, one of Saturday and Sunday is a paid holiday.

Based on the minimum hourly wage of 9,160 won, part-time workers who work 4 hours a day receive 36,640 won a week's holiday pay. The minimum weekly wage, including weekly leave allowance, should be 9,160 won x 24 hours = 211,840 won. Therefore, if a part-timer who works for more than one month receives only 200,000 won a week, it is a violation of the minimum wage.

In case of an full time employee

If an office worker who works more than 8 hours a day receives a salary, the month is calculated as 5 days a week, 8 hours a day, and a week off (35 hours) is included in the calculation.

Some months have 30 days and some months have 31 days, so in general, calculating ‘209 hours × hourly wage’ will give you the minimum monthly wage. In fact, if you multiply 209 hours by the minimum wage of 9,160 won this year, the minimum wage is 1,914,440 won.

So, what if the wages include meals, etc.? Items included in the minimum wage are items that are paid monthly, including the basic wage. For example, welfare expenses such as meals and transportation expenses, and regular bonuses are included in the minimum wage. Therefore, if you are earning more than 1914,440 won including meals and transportation, you are receiving more than the minimum wage.

However, items with different monthly amounts, such as extended night and holiday work allowance, are not included in the minimum wage and must be received separately.

On the other hand, even if a labor contract was signed with a lower amount than this year's minimum wage last year, the employer must pay the minimum wage this year. The minimum wage set by the government applies to all workers even if they do not have to sign a new employment contract.

Reporter Lee Jieun