Labor, management submit 5th revised minimum wage proposals, gap narrows to 1,060 won

Labor and management submitted their fifth revised minimum wage proposals Tuesday, narrowing the gap to 1,060 won as negotiations over next year's minimum wage entered their final stretch.

The two sides plan to continue bargaining through additional revised proposals. If they fail to reach an agreement, whether the public interest members will present a recommended mediation range is expected to be the decisive final variable.

The Minimum Wage Commission held its 12th plenary session at the Government Sejong Building on Tuesday to deliberate on the minimum wage level to take effect in 2027.

Labor representatives put forward 11,500 won ($8) per hour as their fifth revised proposal — 500 won below their initial demand of 12,000 won and 11.4 percent above this year's minimum wage of 10,320 won.

The employers' side proposed 10,440 won per hour, 120 won above their original offer of 10,320 won — a 1.2 percent increase from the current rate.

The gap between the two sides narrowed by 230 won, falling from 1,290 won after the fourth round of revisions to 1,060 won.

Labor has maintained that a meaningful wage increase is necessary given rising consumer prices and the financial burden on low-wage workers. Management has pushed back, arguing that the minimum wage hike should be kept to a minimum, as a sluggish economy and rising producer prices have worsened conditions for small and medium-sized enterprises and small business owners.

At Tuesday's session, public interest members said they would respect any voluntary agreement reached between labor and management and were monitoring the progress of negotiations. They also clarified that a recommendation on minimum wage system reform that some media outlets had recently reported on had not yet been finalized at the commission level.

The commission is set to exchange additional revised proposals and continue negotiations Tuesday. If the two sides ultimately fail to find common ground, the public interest members are widely expected to present a recommended mediation range, after which the commission would move toward a final agreement or a vote.

The statutory deliberation deadline has already passed, but the commission must finalize next year's minimum wage by mid-July to allow time for the Ministry of Employment and Labor minister to complete the official notification process.