|▲ The Korean Confederation of Trade Unions(KCTU) holds a press briefing to unveil a survey concerning the low wage earners' wage loss statistics and to make case presentations due to the recent amendment to the Minimum Wage Act on the morning of Jun. 18 at the KCTU's head office in Seoul.(Jeong Ki-hoon/The Labor Today)|
More than 8 out of 10 low wage workers whose annual wages are less than 25 million won(US$ 22,670) turned out to be losing their wages due to the recent amendment to the Minimum Wage Act. The Korean Confederation of Trade Unions(KCTU) unveiled the estimated wage loss statistics with an analysis on the effect of the amendment to the Minimum Wage Act by using the effective input values like basic wages, bonuses and welfare benefits provided by over 3,000 workers and citizens. The analysis found that 2,336 workers will be losing their wages, upon the premise that the minimum wages will arise to 8,760 won(US$ 7.93) per hour in 2019 and 10,000 won(US$ 9.05) per hour in 2020.
The analysis assumed that basic wages will be stagnant for the coming years, but welfare benefits and bonuses by the month will be included in the minimum wage due to the changes in the rules of employment in compliance with the amendment to the Minimum Wage Act. The revised Act regulates that regular bonuses and cash welfare benefits will be fully included in the minimum wage by 2024, with the phasing down rates of 25% and 7% in 2019, 20% and 5% in 2020, 15% and 3% in 2021, 10% and 2% in 2022, 5% and 1% in 2023. It showed that 2,336 workers participated in the survey will get paid an aggregated amount of 1.65 billion won(US$ 1.5 million) less next year, which amounts to 705,000 won(US$ 639) per person in average.
reported by Yang Ou-ram
translated by Kim Sung-jin
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