What is the 2026 Minimum Wage?
The 2026 minimum wage has been set at 11,090 won per hour. This represents a 70 won (0.6%) increase from 2025's 11,020 won. After deliberation by the Minimum Wage Commission, it has been officially announced, and all employers must comply with this standard when hiring workers.
The minimum wage is the lowest amount workers are legally entitled to receive. Paying below this amount is a violation of labor law. However, certain specific workers have exceptions, which we'll explore in detail.
How to Check If Your Monthly Salary Meets the Minimum Wage
To calculate the minimum wage on a monthly basis, multiply 11,090 won per hour × 209 hours. 209 hours is the standard monthly working hours under law. Therefore, the minimum monthly wage is approximately 2,318,810 won.
There are important points to note when calculating. Certain salary items are not included in the minimum wage calculation. Check the following:
- Non-included salary: Bonuses, welfare benefits (meal allowances, transportation allowances), unused annual leave pay, severance pay
- Included salary: Base pay, fixed allowances (position allowances, hazard allowances, etc.), portions of overtime pay
- Verification method: Only calculate items marked as 'minimum wage applicable salary' on your pay stub
For example, if your monthly salary is 2 million won with 500,000 won in bonuses and 200,000 won in meal allowances, the actual amount subject to calculation is 1.3 million won. In this case, if it falls short of the minimum wage requirement, you can claim the difference from your employer.
Which Workers Are Exempt from the Minimum Wage?
Not all workers receive minimum wage protection. The following may qualify for exceptions:
- Trainees: Within 3 months of employment, 90% of the minimum wage may apply (with mutual agreement)
- Workers provided dormitory: Some construction and mining workers provided with dormitories may receive up to 30% reduction
- Workers with disabilities: Reduction is possible if productivity differs (with Ministry of Employment and Labor approval)
- Special employment workers and freelancers: Not subject to minimum wage (however, review under the Special Form Workers Protection Act may apply)
Even exceptions have established procedures and conditions. Employers cannot unilaterally pay lower wages. If you believe you qualify for an exception, contact the Ministry of Employment and Labor.
Penalties for Minimum Wage Violations and Worker Response
Paying below the minimum wage is a violation of the Labor Standards Act. Employers face the following penalties:
- Criminal penalties: Up to 3 years imprisonment or fines up to 50 million won
- Additional damages: Workers can claim up to 3 times the amount of losses suffered
- Administrative action: Restrictions on employment insurance and workers' compensation insurance enrollment, etc.
Workers can respond as follows:
- Step 1 - Request from employer: Review your pay stub and request payment at or above the minimum wage
- Step 2 - Report to labor office: File a complaint with the Ministry of Employment and Labor (online or in-person)
- Step 3 - Lawsuit: Claim the unpaid wage difference from your employer (workers have 3 years to file)
- Worker protection: If you face unfair dismissal or harassment after reporting, you can file a separate complaint
Reports can be made anonymously. You can call the Ministry of Employment and Labor Customer Service Center (1350) for free consultation.
Strategies for Employers and Support Policies for Minimum Wage Compliance
The government offers support programs to help small business owners and SMEs cope with increased labor costs from the minimum wage increase:
- Employment Retention Subsidy: Partial support for wage increases due to minimum wage rise (limited application period)
- Youth Employment Incentive: 1.1 to 1.65 million won monthly support for employers hiring new young workers
- Employment Incentives for Persons with Disabilities and Older Workers: Approximately 1 million won monthly support for qualifying employers
- Low-Income Employment Support: Separate support when hiring socially vulnerable groups
These subsidies are designed to help employers manage wage adjustments due to the minimum wage increase. Employers can check their eligibility at their local employment labor office or on WorkNet (www.work.go.kr).
Frequently Asked Questions About the Minimum Wage
Q. Can employers combine the minimum wage with government subsidies or support?
A. No. The minimum wage must be 'wages' paid in return for work performed by employees. Government subsidies, dormitory provisions, etc. are not included.
Q. How is it calculated if monthly working hours aren't exactly 209 hours?
A. It's calculated based on actual working hours. For example, if you work 150 hours per month, the minimum wage is 11,090 won × 150 hours = 1,663,500 won.
Q. Does the minimum wage apply to hourly part-time workers?
A. Yes, it does. It applies to all workers regardless of employment type—permanent, contract, or part-time. However, some exempted workers may be excluded.
Q. What if I started mid-year?
A. The minimum wage applies from your start date. If you have a 3-month probationary period after starting, you can receive 90% of the minimum wage (with mutual agreement).
This article is information compiled and organized through AI analysis of various sources. For more accurate information, please check the official website of the Ministry of Employment and Labor (www.moel.go.kr) or contact your local labor office.
