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MINIMUM WAGE ACT

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MINIMUM WAGE ACT

Act No. 3927, Dec. 31, 1986

Amended by Act No. 4575, Aug. 5, 1993

Act No. 5474, Dec. 24, 1997

Act No. 5888, Feb. 8, 1999

Act No. 6278, Oct. 23, 2000

Act No. 5888, Feb. 8, 1999

Act No. 6278, Oct. 23, 2000

Act No. 7563, May 31, 2005

Act No. 7827, Dec. 30, 2005

Act No. 8372, Apr. 11, 2007

Act No. 8818, Dec. 27, 2007

Act No. 8964, Mar. 21, 2008

CHAPTER

General Provisions

Article 1 (Purpose)

The purpose of this Act is to stabilize workers' lives and improve the quality of labor force by guaranteeing them a minimum level of wages and thereby contribute to the sound development of the national economy.

Article 2 (Definition) The terms "worker", "employer" and "wage" in this Act mean a worker, an employer and wages as prescribed in Article 2 of the Labor Standards Act. <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> <Title of This Article Amended by Act No. 8964, Mar. 21, 2008> Article 3 (Scope of Application) (1) This Act shall apply to all businesses or workplaces (hereafter referred to as ßÖbusinessß×) employing workers : Provided that this Act shall not apply to any business using only relatives living together, and to those hired for household work. - 2 - (2) This Act shall not apply to seamen who are subject to the Seaman Act or to ship owners employing such seamen. <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> <Title of This Article Amended by Act No. 8964, Mar. 21, 2008> CHAPTER Minimum Wage Article 4 (Criteria for Determination and Classification of Minimum Wage) (1) A minimum wage shall be set after taking into account the cost of living of workers, the wages of kindred workers, labor productivity and the ratio of workers' compensation to national income. In this case, the amount may be set differently by type of business. (2) The classification by type of businesses as referred to in paragraph (1) shall be determined by the Minister of Labor after deliberation at the Minimum Wage Council under Article 12. <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> <Title of This Article Amended by Act No. 8964, Mar. 21, 2008> Article 5 (Minimum Wage Rate) (1) A minimum wage rate (referring to the amount determined as a minimum wage; hereinafter the same shall apply) shall be determined on the basis of a day, week, or month. In this case, where the minimum wage rate is determined on the basis of a day, week, or month, the rate shall also be noted as an hourly rate. (2) For workers who fall under any of the following subparagraphs, the minimum wage rate may be set in an amount different from the minimum wage rate prescribed in paragraph (1) under the conditions as prescribed by the Presidential Decree : 1. A person who is in a probationary period and for whom less than three months have passed since the beginning of his/her probationary period; and 2. A person who is engaged in surveillance or intermittent work and for whom the employer has obtained approval from the Minister of Labor under subparagraph 3 of - 3 - Article 63 of the Labor Standards Act. (3) If wages are usually fixed under a contract or in other similar ways, and it is deemed inappropriate to determine a minimum wage rate in the way as prescribed in paragraph (1), the minimum wage rate may be determined separately under the conditions as prescribed by the Presidential Decree. <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> <Title of This Article Amended by Act No. 8964, Mar. 21, 2008> Article 5-2 (Calculation of Wages for Application of Minimum Wage) If the unit period of the wages of a worker subject to the minimum wage is different from that of the minimum wage as prescribed in Article 5 (1) of this Act, the method of calculating the worker's wages based on the unit period of the minimum wage shall be prescribed by the Presidential Decree. <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> <Title of This Article Amended by Act No. 8964, Mar. 21, 2008> Article 6 (Effect of Minimum Wage) (1) An employer shall pay the workers who are covered by the minimum wage wages not less than the minimum wage rate. (2) An employer shall not lower the previous wage level on the ground of the minimum wage set under this Act. (3) If a labor contract between an employer and a worker, which is subject to the minimum wage, provides for a wage that is less than the minimum wage rate, such provision shall be null and void and the invalidated provision shall be regarded as stipulating that the same wage as the minimum wage rate set under this Act shall be paid. (4) Wages falling under any of the following subparagraphs shall not be included in the wages referred to in paragraphs (1) and (3): 1. Wages, other than those paid regularly once or more every month, and which are determined by the Minister of Labor; 2. Wages, other than those paid for contractual working hours (hereinafter referred to as "contractual working hours") or contractual working days under Article 2 (1) 7 of the Labor Standards Act, and which are determined by the Minister of Labor; and - 4 - 3. Other wages as deemed inappropriate to be included in calculating the minimum wage and determined separately by the Minister of Labor. (5) Notwithstanding the provision of paragraph (4), the scope of wages included in calculating the minimum wage for workers engaged in driving in a general taxi business under Article 3 of the Passenger Transport Service Act and subparagraph 2 of Article 3 of the Enforcement Decree of the same Act shall be that of wages prescribed by the Presidential Decree, but exclude wages affected by output. (6) The provisions of paragraphs (1) and (3) shall not oblige an employer to pay wages for the hours or days during which a worker has not worked for reasons falling under any of the following subparagraphs: 1. Where a worker has not worked the contractual working hours or days for his/her personal reason; and 2. Where an employer has not let a worker work the contractual working hours or days for a justifiable reason. (7) In the event that a project is carried out under a contract, if the contractee has paid his/her workers wages lower than the minimum wage rate for reasons for which the contractor is liable, the contractor, along with the contractee, shall take joint liability. (8) The scope of reasons a contractor is liable for pursuant to paragraph (7) is as follows : 1. A contractor's act of determining unit labor costs lower than the minimum wage rate at the time of the signing of the contract; and 2. A contractor's act of lowering unit labor costs to below the minimum wage rate in the middle of the contract period. (9) If a project is carried out through two or more tiers of contracts, "contractee" in paragraphs (7) shall be read as "subcontractor" and "contractor" in paragraphs (7) and (8) as "direct upper-tier contractor". <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> <Title of This Article Amended by Act No. 8964, Mar. 21, 2008> Article 7 (Exclusion from Application of Minimum Wage) The provision of Article 6 shall not apply to those who falls under any of the following subparagraphs and for whom the - 5 - employer obtains permission from the Minister of Labor under the conditions as prescribed by the Presidential Decree: 1. A person who has remarkably low abilities to work due to a mental or physical handicap; and 2. Other people as deemed inappropriate to apply the minimum wage. <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> <Title of This Article Amended by Act No. 8964, Mar. 21, 2008> CHAPTER Determination of Minimum Wage Article 8 (Determination of Minimum Wage) (1) The Minister of Labor shall determine the minimum wage by August 5 of every year. In this case, the Minister of Labor shall request deliberation by the Minimum Wage Council (hereinafter referred to as "the Council") under Article 12 under the conditions as prescribed by the Presidential Decree, and determine the minimum wage according to the minimum wage proposal decided by the Council after deliberation. (2) The Council shall, if receiving a request for deliberation on the minimum wage from the Minister of Labor pursuant to the latter part of paragraph (1), make such deliberation and decide and submit a minimum wage proposal to the Minister of Labor within 90 days after the date on which the request for deliberation was received. (3) If the Minister of Labor deems it difficult to determine the minimum wage according to the minimum wage proposal submitted by the Council after deliberation under paragraph (2), the Minister of Labor may request, within 20 days, the Council to deliberate the proposal again for a period of up to 10 days, indicating reasons for such a request. (4) The Council shall, upon receiving a request for redeliberation under paragraph (3), redeliberate and submit the results to the Minister of Labor within the prescribed period. (5) If the Council passes again, in making the redliberation under paragraph (4), the initial minimum wage proposal referred to in paragraph (2) with attendance of a majority of all members and with approval of two-thirds of members - 6 - present, the Minister of Labor shall decide the minimum wage according to the proposal. <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> <Title of This Article Amended by Act No. 8964, Mar. 21, 2008> Article 9 (Objection to Minimum Wage Proposal) (1) The Minister of Labor shall, upon receiving a minimum wage proposal from the Council pursuant to Article 8 (2), announce the minimum wage proposal under the conditions as prescribed by the Presidential Decree. (2) If representatives of workers or employers object to the minimum wage proposal announced under paragraph (1), he/she may file a complaint with the Minister of Labor within 10 days of the announcement under the conditions as prescribed by the Presidential Decree. In this case, the scope of workers' or employers' representatives shall be prescribed by the Presidential Decree. (3) If the Minister of Labor deems the complaint referred to in paragraph (2) to be reasonable, he/she shall request the Council to redeliberate the minimum wage proposal under Article 8 (3), with the contents of the complaint specified. (4) With respect to the minimum wage proposal, a redeliberation on which is requested under paragraph (3), the Minister of Labor shall not determine the minimum wage until the Council submits the minimum wage proposal decided after redeliberation pursuant to Article 8 (4). <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> <Title of This Article Amended by Act No. 8964, Mar. 21, 2008> Article 10 (Public Announcement and Entering into Force of Minimum Wage) (1) If the Minister of Labor has determined the minimum wage, he/she shall announce publicly its contents without delay. (2) The minimum wage announced publicly under paragraph (1) shall come into force on January 1 of the following year: Provided that the Minister of Labor may, if deemed necessary, set different effective dates by type of business in consideration of wage bargaining periods, etc. <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> <Title of This Article Amended by Act No. 8964, Mar. 21, 2008> - 7 - Article 11 (Obligation of Notice) An employer, to whom the minimum wage applies, shall inform workers of the minimum wage concerned by displaying it where it can be easily seen by the workers, or by other appropriate means under the conditions as prescribed by the Presidential Decree. <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> <Title of This Article Amended by Act No. 8964, Mar. 21, 2008> CHAPTER Minimum Wage Council Article 12 (Establishment of Minimum Wage Council) The Minimum Wage Council (hereinafter referred to as ßÖCouncilß×) shall be established in the Ministry of Labor to deliberate the minimum wage and other important matters related thereto. <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> <Title of This Article Amended by Act No. 8964, Mar. 21, 2008> Article 13 (Functions of Council) The Council shall perform the following functions: 1. Deliberation or redeliberation on the minimum wage; 2. Deliberation on the classification by type of businesses to which the minimum wage is applicable; 3. Research and suggestions for the development of the minimum wage system; and 4. Deliberation on other important matters related to the minimum wage, and referred by the Minister of Labor. <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> <Title of This Article Amended by Act No. 8964, Mar. 21, 2008> Article 14 (Composition, etc., of Council) (1) The Council shall be composed of members prescribed in the following subparagraphs : 1. Nine members representing workers (hereinafter referred to as ßÖworkersßÓmembersß×); 2. Nine members representing employers (hereinafter referred to as ßÖemployersßÓmembersß×); and - 8 - 3. Nine members representing the public interest (hereinafter referred to as ßÖpublic interest membersß×) (2) The Council shall have two permanent members who become public interest members. (3) The term of office of a member shall be three years, but renewable. (4) Where a vacancy occurs, the term of office of any member filling the vacancy shall be the remaining period of his/her predecessorßÓs term. (5) After expiry of the term of office, members shall continue to perform their duties until their successors are appointed or entrusted. (6) Necessary matters concerning the qualifications for, and appointment, entrustment, etc, of, members shall be prescribed by the Presidential Decree. <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> <Title of This Article Amended by Act No. 8964, Mar. 21, 2008> Article 15 (Chairman and Vice-Chairman) (1) The Council shall have a Chairman and a Vice-Chairman. (2) The Chairman and the Vice-Chairman shall be elected by the Council from among the public interest members. (3) The Chairman shall generally manage the affairs of the Council and represent the Council. (4) When the Chairman is unable to perform his/her duties due to an inevitable reason, the Vice-Chairman shall act for him/her. <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> <Title of This Article Amended by Act No. 8964, Mar. 21, 2008> Article 16 (Special Members) (1) The Council may appoint three or less special members from among public officials of a relevant administrative agency. (2) Special members may attend and speak at a meeting of the Council. (3) Necessary matters concerning the qualifications for, and appointment, etc. of, special members shall be prescribed by the Presidential Decree. <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> <Title of This Article Amended by Act No. 8964, Mar. 21, 2008> - 9 - Article 17 (Meetings) (1) In the following cases, the Chairman shall convene a meeting of the Council : 1. Where the Minister of Labor request the convening of such meeting; 2. Where one-third or more of all members requests the convening of such meeting; or 3. Where the Chairman deems it necessary (2) The Chairman shall preside over a meeting of the Council. (3) Except as otherwise provided in this Act, a meeting of the Council shall make a decision with attendance of a majority of all members and with approval of a majority of members present. (4) For decision-making as referred to in paragraph (3), the Council shall have attendance of at least one third of workersßÓ members and employersßÓmembers, respectively : Provided that this shall not apply if workersßÓmembers or employersßÓmembers fail to attend without justifiable reasons after asked twice or more to attend the meeting. <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> <Title of This Article Amended by Act No. 8964, Mar. 21, 2008> Article 18 (Hearing of Opinion) The Council may hear the opinions of the workers, employers and other persons concerned, if deemed necessary for the performance of its duties. <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> <Title of This Article Amended by Act No. 8964, Mar. 21, 2008> Article 19 (Technical Committee) (1) The Council may, if deemed necessary, establish a technical committee by type of business or specific matter. (2) The technical committee shall perform the functions prescribed in subparagraphs of Article 13, with part of the CouncilßÓs authority delegated to it. (3) The technical committee shall be composed of an equal number of workers' members, employers' members and public interest members, each number not exceeding five. (4) The provisions of Articles 14 (3) through (6), 15, 17, and 18 concerning the operation, etc. of the Council shall apply - 10 - mutatis mutandis to the technical committee. In this case, ßÖCouncilß×shall be read as ßÖtechnical committeeß×. <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> <Title of This Article Amended by Act No. 8964, Mar. 21, 2008> Article 20 (Secretariat) (1) The Council shall has a secretariat to deal with its affairs. (2) The secretariat may have three or less research members to conduct a survey and research on technical matters necessary for deliberation, etc., on the minimum wage. (3) Necessary matters concerning the qualification for, and appointment and allowances of, research members, and the organization and operation of the secretariat shall be prescribed by the Presidential Decree. <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> <Title of This Article Amended by Act No. 8964, Mar. 21, 2008> Article 21 (Allowances, etc., of Members) A member of the Council or technical committee may be paid allowances and travel expenses under the conditions as prescribed by the Presidential Decree. <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> <Title of This Article Amended by Act No. 8964, Mar. 21, 2008> Article 22 (Operational Regulations) The Council may establish regulations on the operation of the Council and technical committee to the extent not inconsistent with this Act. <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> <Title of This Article Amended by Act No. 8964, Mar. 21, 2008> CHAPTER Supplementary Provisions Article 23 (Survey on Cost of Living, Wages, etc.) The Minister of Labor shall survey each year the costs of living, wages, etc., of workers. - 11 - <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> <Title of This Article Amended by Act No. 8964, Mar. 21, 2008> Article 24 (Support of Government) The government shall make its best effort to provide workers and employers with information and other assistance necessary for the smooth implementation of the minimum wage system. <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> <Title of This Article Amended by Act No. 8964, Mar. 21, 2008> Article 25 (Report) The Minister of Labor may request workers or employers to report matters relating to wages within the extent necessary for the enforcement of this Act. <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> Article 26 (Authority of Labor Inspector) (1) The Minister of Labor shall have a labor inspector under Article 101 of the Labor Standards Act take charge of matters relating to the enforcement of this Act under the conditions as prescribed by the Presidential Decree. (2) In order to exercise the authority as referred to in paragraph (1), a labor inspector may enter a workplace, demand the submission of books and documents, inspect other things, or ask questions to a related person. (3) A labor inspector, who enters and inspects under paragraph (2), shall carry a certificate indicating his/her identity, and show it to a related person. (4) A labor inspector shall perform the duties of a judicial police officer in relation to any offence committed in violation of this Act, under the conditions prescribed by the Act on the Persons Performing the Duties of Judicial Police Officials and the Scope of Their Duties. <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> <Title of This Article Amended by Act No. 8964, Mar. 21, 2008> Article 26-2 (Delegation of Authority) Parts of the authority of the Minister of Labor under this Act may be delegated to the head of a local labor office under the conditions prescribed by the Presidential Decree. - 12 - <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> <Title of This Article Amended by Act No. 8964, Mar. 21, 2008> Article 27 Deleted <Act No. 8964, Mar. 21, 2008> CHAPTER Penal Provisions Article 28 (Penal Provisions) A person who pays wages lower than the minimum wage rate or lowers the previous wages on grounds of the minimum wage in violation of Article 6 (1) or (2) shall be punished by imprisonment of up to three years or a fine not exceeding 20 million won. In this case, both imprisonment and fine may be imposed simultaneously. <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> <Title of This Article Amended by Act No. 8964, Mar. 21, 2008> Article 29 Deleted. <Act No. 5888, Feb. 8, 1999> Article 30 (Joint Penal Provisions) (1) If the representative, an agent, a servant or any other employee of a juridical person commits the offence prescribed in Article 28 in relation to the business of the juridical person, the juristic person, in addition to the offender, shall be punished by a fine pursuant to the same Article. (2) If an agent, a servant or any other employee of an individual commits the offence prescribed in Article 28 in relation to the business of the individual, the individual, in addition to the offender, shall be punished by a fine pursuant to the same Article. <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> <Title of This Article Amended by Act No. 8964, Mar. 21, 2008> Article 31 (Fine for Negligence) (1) A person who falls under any of the following subparagraphs shall be punished by a fine not exceeding one million won. 1. A person who, in violation of Article 11, fails to widely inform workers of the minimum wage concerned in the way - 13 - prescribed in the same Article; 2. A person who fails to make a report on matters concerning wages under Article 25 or makes a false report; and 3. A person who refuses, interferes with, or evades the request or inspection under Article 26 (2), or gives a false answer to questions asked. (2) The fine for negligence prescribed in paragraph (1) shall be imposed and collected by the Minister of Labor under the conditions prescribed by the Presidential Decree. (3) A person who is not satisfied with the imposition of a fine for negligence under paragraph (2) may raise an objection to the Minister of Labor within 30 days from the date on which the imposition was notified. (4) If a person subject to the imposition of a fine for negligence pursuant to paragraph (2) raises an objection pursuant to paragraph (3), the Minister of Labor shall notify, without delay, the competent court of this, and the court so notified shall try the case of a fine for negligence in accordance with the Non-Contentious Case Litigation Procedure Act. (5) If neither objection is raised pursuant to paragraph (3) nor is the fine for negligence paid, the fine for negligence shall be collected according to the process of recovery of national taxes in arrears. <This Article Wholly Amended by Act No. 8964, Mar. 21, 2008> <Title of This Article Amended by Act No. 8964, Mar. 21, 2008> Addenda <Act No. 8964, Mar. 21, 2008> (1) (Enforcement Date) This Act shall enter into force on the date of its promulgation : Provided that the revised provision of Article 6 (5) shall enter into force on the following dates: 1. Special Metropolitan Cities and Metropolitan Cities under Article 2 (1) 1 of the Local Autonomy Act : July 1, 2009 2. Jeju Special Self-governing Province and Sis under Article 2 (1) 2 of the Local Autonomy Act : July 1, 2010 3. Regions other than those described in subparagraphs 1 and 2 : July 1, 2012 (2) (Revision of Other Laws) Parts of the Act on the Protection, etc. of Dispatched Workers shall be revised as follows : - 14 - "Article 6 of the Minimum Wage Act" in subparagraph 3 of Article 8 shall be changed to "Article 6 of the Minimum Wage Act".   <hr class="make-database"> AsianLII: <a href="/asianlii/copyright.html" class="make-database">Copyright Policy</a> | <a href="/asianlii/disclaimers.html" class="make-database">Disclaimers</a> | <a href="/asianlii/privacy.html" class="make-database">Privacy Policy</a> | <a href="/asianlii/feedback.html" class="make-database">Feedback</a> URL: http://www.asianlii.org/kr/legis/laws/mwa138 </body> </html>