The minimum wage in Korea is set to increase in 2017. From 2016’s rate of 6030KRW/Hr (250.46Php/Hr), next year’s minimum wage would be 6470 KRW/Hr (268.73Php/Hr) as declared by the Ministry of Employment and Labor (MOEL)
The new rates would amount to:
* 51,760KRW/day (2,149.87Php/day) for a total of 8 working hours.
* 258,800KRW (10,749.34Php) for 5 working days
* or 1,352,230 (56,162.28Php) a month
The worker’s employment status would not matter. Korea’s Labor Standards Act is clear in saying that even regardless of nationality, the Minimum Wage includes all employees, may he or she be just temporary, daily or part-time.
But of course, there are exceptions. Not included here are the following:
Businesses employing only family members or relatives within the same residence
Domestic service users
Seamen governed by the Seamen Act
Ship owners who employ those seamen
Those benefiting from the 7.3% increase are Pinoys under the Employment Permit System (EPS). To date, it has been reported that there are over 24,000 OFWs involved in small and medium manufacturing industries who are under the EPS.
While it is normal to expect that in every pay hike phenomenon there is a corresponding increase in the cost of living in that locality, it is not conclusive that the cost of living in Korea would behave this way. It is important to note that the recorded minimum wages from 1989 up to 2016 in South Korea averaged 2650.36 KRW/Hr, the highest of which is in 2016.The consistent increase in the minimum wage in South Korea is seen to benefit Pinoy workers.
How about you? Feeling interested in working in South Korea? Maybe this is the time for you to think about it. Watch for our next infoseries on how to land a job in South Korea through the Employment Permit System.