2027 Minimum Wage Proposal Approved at KRW 10,700: Monthly Salary Calculation and Final Announcement Schedule
This article is based on the latest available news reports and official sources verified as of 2026-07-15 Korea Standard Time.
On 2026-07-14, the Minimum Wage Commission approved a proposed minimum wage of KRW 10,700 per hour for 2027. The monthly equivalent for an employee working 40 hours per week is KRW 2,236,300 before taxes and deductions. The new rate will take effect on 2027-01-01 after the final official announcement.
The currently announced figure is the 'proposed minimum wage' approved by the Minimum Wage Commission. The Minister of Employment and Labor is scheduled to make the final determination and official announcement by 2026-08-05.
How Much Higher Is It Than in 2026?
The minimum wage currently in effect for 2026 is KRW 10,320 per hour. Compared with the approved proposal for 2027, this represents an hourly increase of KRW 380, or 3.7%.
| Category | 2026 | 2027 Approved Proposal | Increase |
|---|---|---|---|
| Hourly wage | KRW 10,320 | KRW 10,700 | KRW 380 |
| Daily wage for 8 hours | KRW 82,560 | KRW 85,600 | KRW 3,040 |
| Monthly equivalent | KRW 2,156,880 | KRW 2,236,300 | KRW 79,420 |
Assuming the same 209 working hours per month, this translates into an increase of KRW 79,420 per month, or KRW 953,040 before taxes and deductions over 12 months.
However, actual pay may vary depending on each employer's wage structure, including bonuses, meal allowances, overtime pay, and night-work allowances.
How Is the Monthly Salary of KRW 2,236,300 Calculated?
The official monthly equivalent is calculated as follows:
KRW 10,700 × 209 hours = KRW 2,236,300
The 209-hour figure is the monthly average calculated from a 40-hour workweek plus 8 hours of paid weekly holiday time.
Therefore, the monthly amount of KRW 2,236,300 assumes the following conditions:
Working 8 hours per day, 5 days per week
40 scheduled working hours per week
Meeting the eligibility requirements for paid weekly holiday pay
An amount calculated before taxes and 4 major social insurance contributions are deducted
The monthly amount of KRW 2,236,300 does not mean that every part-time or short-hour employee will receive the same salary.
If an employee works fewer than 40 hours per week, their wages must be recalculated based on their actual scheduled working hours. Eligibility for weekly holiday pay must also be checked against weekly working hours and whether the required working days have been fulfilled.
To calculate actual wages, employees should check not only the hourly rate but also their monthly scheduled working hours and whether paid weekly holiday provisions apply.
News Headlines Say 'Finalized,' but Official Documents Say 'Proposed Minimum Wage'
Some news headlines describe KRW 10,700 as finalized, but the official announcement is titled 'Proposed Minimum Wage for 2027.'
The following steps remain after the Minimum Wage Commission's decision:
1. The Minimum Wage Commission submits its approved proposal to the Minister of Employment and Labor
2. The Ministry of Employment and Labor publicly announces the proposed minimum wage
3. Labor and employer organizations may file objections within 10 days of the announcement
4. Reconsideration takes place if necessary
5. The Minister of Employment and Labor makes the final determination and official announcement by August 5
Because changes during reconsideration or the official announcement process cannot be completely ruled out, employees and employers should check the final announcement again before incorporating the new rate into employment contracts or labor-cost plans for 2027.
When Will the New Rate Be Reflected in Wages?
The minimum wage established through the final official announcement will apply from 2027-01-01 through December 31.
Receiving payment in January 2027 for work performed in December 2026 does not automatically mean that the 2027 hourly wage applies. Generally, the applicable minimum wage is determined by the date the work was actually performed rather than the date wages are paid.
For example, if a payroll calculation period runs from 2026-12-20 through 2027-01-10, wages may need to be calculated separately for the periods before and after the calendar year changes.
What to Check in an Employment Contract
Before the 2027 minimum wage takes effect, employees and employers should review the following items together:
The basic hourly wage stated in the employment contract
Scheduled working hours per day and per week
Whether paid weekly holidays and weekly holiday pay apply
Wage components such as meal allowances and bonuses
Whether overtime, night-work, and holiday-work allowances are calculated separately
Whether the wage increase is reflected in work performed on or after 2027-01-01
Take-home pay varies from person to person depending on deductions such as taxes, National Pension contributions, National Health Insurance contributions, and Employment Insurance contributions. The gross monthly equivalent should not be treated as the amount that will necessarily be deposited into an employee's bank account.
As of 2026-07-15, the key confirmed figures are an hourly wage of KRW 10,700 and a monthly equivalent of KRW 2,236,300. However, before applying these amounts to employment contracts or labor-cost planning, the final announcement from the Ministry of Employment and Labor, scheduled by August 5, should be checked once more.