The minimum wage in South Korea increases every year and it is determined by the Minimum Wage Commission (최저임금위원회).
For 2021, the minimum wage is pegged at 8,720 won. This was announced on August 5, 2020.
The monthly minimum wage for a 40-hour work week is 1,822,480. This will be effective from January 1 to December 31, 2021.
For 2021, expect to see the salary increase on the February paycheck.
| Minimum Wage | 2020 | 2021 |
| Hourly | 8,590 | 8,720 |
| Monthly (209 hours) | 1,795,310 | 1,822,480 |
The monthly hours is computed as:
1 week = 40 hrs + 8 hrs paid weekly leave
( (40 hrs + 8 hrs) x 365 / 7 ) / 12 months
The minimum wage covers all workers in South Korea including foreigners. The only exceptions are businesses that employ family members or relatives living in the same residence, domestic service users, and those covered by the Seamen Act.
Underrate may be applied for provisional workers of less than 3 months. They may be paid by 10% less than the hourly minimum wage.
Minimum wage rates per year since 2007:
The Minister of Labor requests deliberation of Minimum Wage by March 31. The Minimum Wage Commission conducts a plenary session and announces its decision by June 29. The announcement of the minimum wage for the next year is on August 5.