April 25, 2024

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[THE INVESTOR] The government said on Nov. 9 it will inject nearly 3 trillion won (US$2.70 billion) into smaller companies to ease their cost burden resulting from a drastic increase of the minimum wage rate starting next year.

A company with less than 30 staff will be eligible for state support of up to 130,000 won per employee to cover payroll costs, according to the Ministry of Finance and Ministry of Labor and Employment.

An employee must be paid less than 1.9 million won on a monthly basis in order to be subject to the state subsidy. Those in a more unstable job category, such as janitors and apartment security guards, are eligible even if their workforce exceeds 30 people, the ministries said.

In July, the liberal Moon Jae-in government decided on a whopping 16.4 percent raise in the wage floor to 7,530 won per hour, the biggest increase ever. The monthly wage will thus climb by 221,540 won to 1.57 million won.
By Alex Lee and newswires (alexlee@heraldcorp.com)