l Labor Law update on Minimum Wages
Ministry of Employment and Labor (MOEL) officially announced that the minimum
hourly wage will increase from KRW 9,620 to KRW 9,860 effective from
January 1, 2024 (the monthly minimum wage will be KRW 2,060,740 with 209
work hours under the labor laws of Korea). The requirement shall be applied
equally across all industries.
Minimum Hourly Wage
Minimum Monthly Wage
pay regulations under the Labor Standards Act of Korea
the Labor Standard Act (LSA) of Korea, employers must grant a paid off-day to
employees working on the statutory holiday (such as Workers' Day on May 1).
an employee works on statutory holidays, the employer must pay an overtime
payment of at least 50% of the ordinary wage under Article 56 (Overtime,
Night-time, and Holiday Work) of the LSA, and the calculation for overtime pay
on statutory holiday should be as below.
Overtime pay should be calculated at 150% of the hourly ordinary wage for the
normal working hours (8 hours per day)
200% for any overtime work between 18:00 ~ 22:00
250% for overtime work after 22:00
example, if an employee works for 9 hours on statutory holiday, the calculated
overtime payment will be:
hours * 150%) + (1 hour * 200%) = 14 hours
addition, Article 57 (Compensatory Leave System) of the Labor Standards Act
stipulates that compensatory leave shall be granted in lieu of payment for
example, if an employee works for 8 hours on the statutory holiday, the
employer may either pay an additional 12 hours of wages (equivalent to 150% of
the 8 hours worked) or grant 12 hours of compensatory leave in lieu of payment
(MOEL Wage and Work Hour Policy Team - 2363, July 13, 2007).