Labour Standards Act, South Korea (Wages and Social Insurance)

Labour Standards Act (Chapter 3) (Wages and social insurance)

A minimum wage applies to all employees with some exceptions. However, a recent amendment to the Minimum Wage Act, effective as of March 20, 2018, has narrowed the scope of these exceptions. Employees in their probationary period (up to three months) can be paid a lower wage; however, the amended Minimum Wage Act no longer allows the application of this exception to unskilled labourers within a scope defined by regulation.

The exception for “surveillance or intermittent” work has also been eliminated. The minimum hourly wage rate for 2018 is KWR 7,530 and the 2019 minimum wage has been set at KRW 8,350. Employers must contribute to mandatory social security schemes such as the National Pension, the National Health Insurance, the Unemployment Insurance and the Industrial Accident Compensation Insurance.