2027 Minimum Wage of 10,700 Won: Monthly Salary Conversion and Implementation Schedule

On July 14, 2026, the Minimum Wage Commission approved a proposal to set the minimum wage for 2027 at 10,700 won per hour. This represents an increase of 380 won, or 3.7%, from the 2026 minimum wage of 10,320 won.

However, to accurately describe the legal status as of July 17, 2026, the current amount is the “minimum wage proposal” approved by the Minimum Wage Commission and announced by the Ministry of Employment and Labor. Following the labor-management objection process, the Minister of Employment and Labor will make the final decision and issue a public notice by August 5, 2026, at which point the minimum wage will take effect on January 1, 2027.

Key Figures at a Glance

The daily wage is calculated based on an 8-hour workday. The monthly equivalent is the pre-tax amount calculated by multiplying 209 hours per month, assuming a 40-hour workweek and including paid weekly rest hours.

How is 2,236,300 won per month calculated?

Basic Calculation Formula

• Hourly wage: 10,700 won
• Daily wage: 10,700 won × 8 hours = 85,600 won
• Monthly equivalent: 10,700 won × 209 hours = 2,236,300 won

The 209 hours per month are typically calculated as follows:

(40 hours per week + 8 hours of paid weekly rest) × 365 days ÷ 7 days ÷ 12 months ≈ 209 hours

Therefore, 2,236,300 won is the official monthly conversion amount based on a 40-hour workweek and 8 hours of paid weekly rest.

Not all employees receive a monthly salary of 2,236,300 won

The actual amount paid varies depending on the employment contract and work arrangements.

• Monthly wages differ if the scheduled working hours are fewer or more than 209 hours per month.
• Weekly rest day allowances are paid only when statutory requirements, such as the scheduled weekly working hours, are met.
• Overtime, night shift, and holiday work allowances, which are paid when statutory requirements are met, are calculated separately from the monthly converted minimum wage.
• Since 2,236,300 won is a pre-tax amount, it differs from the actual take-home pay after deductions for National Pension, Health Insurance, Employment Insurance, and income tax.
• Compliance with the minimum wage is determined not by the total gross pay alone, but by converting the wages specified by law as part of the minimum wage into an hourly rate.

How Much Will It Increase Compared to 2026?

The proposed minimum wage for 2027 will increase by 380 won from the 2026 hourly rate of 10,320 won. For an 8-hour workday, daily wages will increase by 3,040 won, and based on a 209-hour work month, monthly wages will increase by 79,420 won.

This comparison is a simple conversion based on the assumption that working hours remain the same and other allowance or deduction conditions do not change.

How Did the Decision-Making Process Unfold?

The initial demands from labor and management were far apart. Labor proposed 12,000 won per hour, while management proposed freezing the rate at 10,320 won—the same as in 2026. Subsequently, labor and management narrowed the gap by submitting up to the 12th revised proposal.

The final proposals—10,730 won from the workers’ representatives and 10,700 won from the employers’ representatives—differed by a mere 30 won. As no agreement was reached, a vote was held at the 14th plenary session on July 14, 2026.

All 27 members present voted, and the employers’ proposal of 10,700 won was adopted. In 2027, the single-rate system—which applies the same minimum wage across all businesses subject to the Minimum Wage Act without sector-specific variations—will remain in place.

Remaining Procedures and Implementation Schedule

The receipt of an objection does not automatically trigger a re-review. The Minister of Employment and Labor may request a re-review by the Minimum Wage Commission only if the Minister deems the grounds for the objection valid or determines that it is difficult to set the minimum wage based on the submitted proposal.

How Many Workers Are Affected?

The Minimum Wage Commission presented the number of workers affected by the 2027 minimum wage proposal based on two statistical criteria.

These two figures are not contradictory. The range of results varies significantly due to differences in the survey population, sample size, wage measurement methods, and the definition of workers affected by the minimum wage. Therefore, rather than adding or averaging the two figures, they should be cited alongside their respective survey criteria.

To Whom Does It Apply?

In principle, the minimum wage applies to all businesses or workplaces that employ one or more workers. Anyone classified as a “worker” under the Labor Standards Act—including full-time, non-regular, part-time, and casual workers, as well as minors and foreign nationals—is subject to the minimum wage, regardless of employment status or nationality.

Even if an employer and employee agree, any provision setting a wage lower than the minimum wage is invalid. However, since there are statutory exceptions—such as businesses employing only relatives living in the same household, certain domestic workers, and seafarers—as well as cases requiring an individual determination of worker status, the specific applicability must be verified separately.

In principle, probationary employees are also subject to the minimum wage. However, probationary employees who have entered into an employment contract for one year or more may be paid 90% of the minimum wage for up to three months from the start of their probationary period, provided they meet the statutory requirements. There are exceptions where such reductions are not permitted, such as in unskilled labor occupations.

Matters for Employees and Employers to Verify

Employees

• Verify that the hourly wage is 10,700 won or more for work performed on or after January 1, 2027.
• Keep your employment contract, time records, pay stubs, and bank deposit statements.
• Check to see if your weekly rest day allowance and overtime, night shift, and holiday work allowances have been calculated in accordance with the respective requirements.
• If you suspect your pay falls below the minimum wage, contact the Ministry of Employment and Labor’s Customer Service Center at 1350 or your local employment and labor office.

Employers

• Review the 2027 wage schedules and employment contracts for employees paid by the hour, by the day, or by the month.
• For monthly-salaried workers, recalculate the hourly wage based solely on the portion of the salary that counts toward the minimum wage.
• Reflect weekly rest day allowances and overtime, night shift, and holiday work allowances separately from the basic monthly converted amount, in accordance with the respective statutory requirements.
• Post information at the workplace so that employees can easily understand the minimum wage amount and its application.
• Update payroll software, job postings, labor cost budgets, and outsourcing rates to reflect the 2027 standards.

Key Interpretation

The 2027 minimum wage of 10,700 won does not simply represent an hourly rate. While the official monthly equivalent for a 40-hour workweek is 2,236,300 won, the actual monthly salary and take-home pay vary depending on scheduled working hours, weekly rest day requirements, the composition of allowances, and social insurance and taxes.

Furthermore, as of July 17, 2026, the Minimum Wage Commission’s resolution has been announced. The final statutory amount must be confirmed based on the details determined and announced by the Minister of Employment and Labor by August 5, 2026.