Table of Contents
- How much has the minimum wage increased in 2026?
- 2026 Minimum wage monthly salary and annual salary calculator standards
- Background of the increase and key discussion processes
- Positive effects of the minimum wage increase
- Negative concerns regarding the minimum wage increase
- What are the challenges for the government and society?
- How does it affect the labor costs for self-employed individuals and convenience store part-timers?
- In the era of 10,320 won, how can it lead to effective 'minimum livelihood protection'?
- Frequently Asked Questions (FAQ)
How much has the minimum wage increased in 2026?
The minimum wage in South Korea for 2026 has been set at 10,320 won per hour. This is an increase of 290 won (2.9%) from the 2025 wage of 10,030 won. When calculated as a monthly salary based on 40 hours a week and 209 hours a month, this amounts to approximately 2,156,880 won.
The announced minimum wage increase rate is recorded as the seventh lowest since the implementation of the minimum wage system in 1988. Additionally, considering the first year of past governments, it is the second lowest after the 2.7% increase during the Kim Dae-Jung administration.
This is the first minimum wage decision of the Lee Jae-Myung administration, making it a significant decision with both political and economic ramifications.
2026 Minimum wage monthly salary and annual salary calculator standards
The current minimum wage is 10,320 won per hour. Based on this, for a 40-hour work week, the weekly wage will be 412,800 won.
When calculating the monthly salary, applying the average working hours of 209 hours including the weekly holiday pay, it will come to 2,156,880 won. If this is multiplied over 12 months, the annual salary would be approximately 25,882,560 won.
However, the actual amount received may vary depending on individual circumstances. When calculating part-time wages, factors such as whether weekly holiday pay is included, the number of hours worked per week, and the number of working days should be considered, as these elements will impact the final amount received.
Background of the increase and key discussion processes
This minimum wage increase is notable because it was determined through negotiations between labor and management for the first time in 17 years. The Minimum Wage Committee held its 12th general meeting on July 10 at the Government Sejong Center and completed its related deliberations. However, there was serious backlash from the labor sector, including a collective walkout by four worker representatives from the Korean Confederation of Trade Unions who argued that the increase rate was too low.
The labor sector argues that the current minimum wage does not reflect the inflation rate and increase in living costs, making it realistically too low. Conversely, employers express concerns about the rising labor costs due to economic recession. Amidst this confrontation, attention is focused on the actual outcomes of the minimum wage increase.
Positive effects of the minimum wage increase
The stabilization of livelihoods for low-income workers plays an important role in the minimum wage increase. By guaranteeing basic living expenses, their income increases, which expands their consumption capacity.
Furthermore, as income increases, consumption is likely to rise, potentially leading to increased sales for self-employed individuals and small businesses.
This change can bring about an increase in the income of the lower strata and can positively impact the resolution of income inequality.
Negative concerns regarding the minimum wage increase
The pressure on small businesses and self-employed individuals is severe. With rising labor costs, micro-enterprises may have to reduce working hours or cut staff, or even consider closing down.
This situation also impacts the job market. There is a high likelihood that the employment of part-timers and non-regular workers could decrease, or that automation may proceed more rapidly.
Moreover, the rise in labor costs is expected to be reflected in consumer prices, consequently exerting pressure on the overall cost of living. Ultimately, this will affect all consumers.
What are the challenges for the government and society?
The support for small businesses and micro-enterprises needs to be expanded. It is crucial to provide actual assistance through some reimbursement of labor costs, tax benefits, and provision of policy funds for loans.
Additionally, policies for job security should be implemented alongside this. To prevent employment reductions due to the minimum wage increase, policies such as job stability funds and incentives for hiring young people are needed.
Lastly, discussions should be actively held to improve the minimum wage system. There is a demand for a transition to a flexible structure that applies different rates based on industry and region.
How does it affect the labor costs for self-employed individuals and convenience store part-timers?
The impact of the minimum wage increase is particularly severe for self-employed individuals. This is especially prominent in sectors with a high proportion of labor costs, such as convenience stores, cafes, and restaurants. As labor costs rise, operational burdens increase, raising possibilities for adjustments to part-time wages at convenience stores, reduction of working hours, and cuts to personnel.
For part-time work at convenience stores, the daily wage for 4 hours of work is approximately 41,280 won. Based on a 5-day workweek, the monthly salary would amount to around 826,000 won. If weekly holiday pay is included, the effective hourly wage could be significantly higher, and since payment for weekly holiday pay is mandatory for those working over 15 hours a week, the burden of labor costs on convenience store operators is exacerbated.
Self-employed organizations warn that the wage increase amid the current economic downturn will result in job cuts and closures. There is a growing call for the government to quickly prepare support measures for covering labor costs. There is increasing opinion that support is necessary for self-employed individuals to continue their operations.
In the era of 10,320 won, how can it lead to effective 'minimum livelihood protection'?
With the minimum wage in 2026 set at 10,320 won, legally significant standards have been established. However, to genuinely improve people's quality of life, social systems and policies must support this.
It is essential to establish practical policies that not only focus on wage increases but also reflect diverse voices from the field, alongside balanced economic management. This can help create a better economic environment.
Sectors like the food service industry, convenience stores, retail, and accommodation, which have a high proportion of labor costs, are likely to be greatly affected by the minimum wage increase. In particular, small businesses with 1 to 5 employees may find it challenging to bear additional costs, leading to considerations of workforce reduction or curtailment of operations. In contrast, large corporations or industries offering higher wages are likely to experience relatively less impact.
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Frequently Asked Questions (FAQ)
Q. What is the minimum wage in South Korea for 2026?
The minimum wage for 2026 has been set at 10,320 won per hour.
The minimum wage in South Korea for 2026 has been confirmed at 10,320 won per hour. This represents an increase of 290 won (2.9%) from the 2025 wage of 10,030 won. Based on a 40-hour work week and 209 hours a month, this translates to a monthly salary of approximately 2,156,880 won.
Q. How has the minimum wage increase rate for 2026 been recorded?
The minimum wage increase rate of 2.9% for 2026 is the seventh lowest in history.
The minimum wage increase rate of 2.9% is the seventh lowest since the implementation of the minimum wage system in 1988. Additionally, for first-year comparisons of previous governments, it is the second lowest, following the 2.7% during the Kim Dae-Jung administration, making it significant both politically and economically as the first minimum wage decision of the Lee Jae-Myung administration.
Q. What are the monthly and annual salaries based on the minimum wage?
The monthly salary is approximately 2,156,880 won, and the annual salary is about 25.88 million won.
Based on the hourly wage of 10,320 won, if working 40 hours a week, the weekly wage is 412,800 won. When considering an average working time of 209 hours including weekly holiday pay, the monthly salary is around 2,156,880 won. When calculated annually over 12 months, this amounts to approximately 25,882,560 won. However, the actual amount received may vary depending on individual working conditions.
Q. What was the main discussion process for the minimum wage increase?
The minimum wage increase was decided through labor-management negotiations for the first time in 17 years, though there was backlash from the labor sector.
The minimum wage increase for 2026 was decided through negotiations between labor and management for the first time in 17 years. The Minimum Wage Committee completed deliberations in its 12th general meeting; however, there was significant backlash as worker representatives from the Korean Confederation of Trade Unions collectively walked out, claiming that the increase rate was too low. The labor sector argued that the rise in living costs and inflation were not accurately reflected and therefore considered the current wage too low, while the employer side expressed concerns over the burden of labor costs due to economic downturns.
Q. What are the positive effects of the minimum wage increase?
Stabilization of livelihoods for low-income workers, increased consumption, and relief of income disparity are positive outcomes.
The increase in minimum wage secures basic living costs for low-income workers, thereby raising their income and potential consumption. As a result, small businesses and self-employed sales may also see an increase, positively contributing to the resolution of income disparity and playing a vital role in the economic security of lower-income brackets.
Q. What are the negative concerns regarding the minimum wage increase?
Increased burden on self-employed individuals, potential job cuts, and rising living costs are concerns.
The rise in labor costs due to the minimum wage increase can put significant pressure on self-employed individuals and small businesses, potentially leading to reductions in working hours, cuts in staff, or situations of closure. In the job market, this might result in a decline in part-time and temporary employment, as well as an acceleration in automation. Furthermore, the increase in labor costs is anticipated to translate into higher consumer prices, exerting pressure on overall living costs.
Q. How should the government and society respond to the minimum wage increase?
Support for self-employed individuals, job stability policies, and improvements to the system are necessary.
The government needs to expand its support for self-employed individuals and micro-businesses. Essential measures include labor cost reimbursements, tax benefits, and loans from policy funds. Concurrently, job stabilization measures must be employed to avoid employment reductions due to the wage increase, like employment stability funds and incentives for hiring youth. Lastly, discussions surrounding improvements to the minimum wage system must be activated, advocating for adjustable structures based on industry and region.
Q. What impact does the minimum wage increase have on convenience store part-time wages?
The burden of part-time wages and monthly salaries significantly increases, leading to workforce adjustments.
For part-time work at convenience stores, the wage for 4 hours of work amounts to approximately 41,280 won, leading to around 826,000 won monthly based on a 5-day workweek. If weekly holiday pay is included, the effective hourly wage may increase significantly, adding to the burden of labor costs on the self-employed. Consequently, adjustments in part-time wages, reductions in work hours, and workforce cuts are likely, further amplifying operational stress.
Q. What is needed for the era of 10,320 won to translate into effective livelihood protection?
Support from policies and a balanced economic operation are necessary.
The minimum wage must not only serve as a wage increase mechanism but should also incorporate practical policies reflecting various on-ground voices, alongside balanced economic operations. This interplay of social systems and support is essential to improve the economic environment and the quality of life for workers. To ensure the minimum wage effectively guarantees livelihood protection, such policy backing is crucial.
