2026 Minimum Wage Increase and Application Date
The 2026 minimum wage has been set at 11,100 won per hour. This represents an increase of 370 won (approximately 3.4%) from 2025's 10,730 won per hour. This decision was deliberated and resolved by the Central Labor Relations Commission in consideration of economic conditions and inflation rates, and will be uniformly applied to all workplaces nationwide starting January 1, 2026.
The minimum wage is the lowest amount an employer must pay workers and applies to all employees regardless of employment type—whether full-time, part-time, permanent, or temporary. Even if the base salary is low, various allowances must be combined to meet or exceed the minimum wage.
How to Calculate Minimum Wage in Monthly Terms
While the minimum wage is announced on an hourly basis, actual salary payments must be converted to a monthly standard. Monthly minimum wage = Hourly minimum wage × 40 hours per week × 52 weeks ÷ 12 months.
Based on 2026 calculations:
- Monthly minimum wage (approximately 2.3 million won): 11,100 won × 40 hours × 52 weeks ÷ 12 months = 2,298,400 won
- Based on a 5-day work week with 8-hour daily shifts, employees must receive at least approximately 2.3 million won per month
- Statutory allowances such as weekly holiday pay and annual leave pay must be provided separately from the base salary
Employers must clearly state this standard in the employment contract and verify each month through pay stubs that the correct amount was calculated and paid. Employees can also verify their hourly wage calculations are correct, so review your pay stubs carefully.
Exclusions from Minimum Wage Application and Industry-Specific Exceptions
While minimum wage regulations apply to most workers, there are exceptions in some special cases. Understanding the exact circumstances can help prevent unnecessary conflicts.
- Exclusions: Family business workers, seafarers (subject to the Seafarers Act), apprentices and trainees in specific industries (90% of minimum wage may apply)
- Possible reductions: People with disabilities, some elderly workers (65 and older), and those with mild intellectual disabilities may request reductions up to 10% of the minimum wage based on work capability assessments (prior approval from the Ministry of Employment and Labor required)
- Special considerations: Small businesses facing financial difficulties may also apply for wage increase deferment if certain conditions are met
However, to receive reductions or exemptions, employers must apply to and receive approval from the Ministry of Employment and Labor in advance. Note that employers cannot avoid minimum wage application based solely on worker consent.
Checklist: What Employers Must Verify for 2026 Wage Systems
With the minimum wage increase, employers must review the following items. Overlooking these can result in fines and unpaid wage claims if detected by labor authorities.
- Verify base salary: Check if current employees' base salaries meet the monthly 2.29 million won threshold, and adjust from January if needed
- Review allowance composition: When base salary is low and allowances are high, verify which allowances are included in minimum wage calculations
- Recalculate hourly wages: For hourly-paid workers such as part-timers and contract workers, confirm they receive at least 11,100 won per hour
- Calculate overtime pay: Overtime compensation must increase proportionally as the base salary rises
- Update payroll systems: Input the 2026 minimum wage into payroll management programs and check for calculation errors
- Notify employees: Inform staff of the increase in advance and clearly indicate it on pay stubs
Checklist: Minimum Wage Rights and Action Steps for Workers
Workers also have the right to independently verify that their wages meet minimum wage standards. If you're receiving below-minimum wages, take action immediately.
- Review pay stubs carefully: Verify that base salary plus eligible allowances (family allowances, service bonuses, welfare benefits, etc.) meet the monthly minimum wage or exceed it
- Know excluded items: Be aware that bonuses, some welfare benefits, and meal allowances may not be counted toward minimum wage, so review your salary structure
- Action for sub-minimum wages: First point out the issue to your employer, and if not resolved, you can report to the Ministry of Employment and Labor (1350)
- Right to claim back wages: You can claim the difference between your wages and the minimum wage for up to 3 years retroactively, so keep supporting documents
- Prevent wrongful termination: You cannot be fired for reporting a minimum wage issue, and such action can be claimed as wrongful termination
Business Operation Tips for the Minimum Wage Increase
From an employer's perspective, the minimum wage increase may feel like an added operating cost. However, there are reasonable ways to manage it. Small business support funds are available to help ease the burden of the minimum wage increase—contact your local government or the Small Business and Market Service for assistance. Consider investing in worker productivity training, improving work efficiency, and appropriately reflecting the wage increase in product and service pricing.
This article provides information compiled and organized by AI from various sources. For more accurate details, please verify with relevant institutions or professionals.
