Next year's minimum wage to be at least 10,640 won as labor-management gap narrows to 130 won

Labor and management narrowed their gap to 130 won on Tuesday after both sides submitted their 12th revised proposals for next year's minimum wage at the 14th plenary session of the Minimum Wage Commission.

Observers expect the latest submissions to be effectively the final offers, as both sides have now put forward two rounds of revisions since the public-interest commissioners presented a recommended deliberation range.

Labor proposed an hourly wage of 10,770 won ($7), down 1,230 won from its initial demand of 12,000 won and representing a 4.4 percent increase over this year's minimum wage of 10,320 won. Management countered with 10,640 won, up 320 won from its initial position and a 3.1 percent increase over this year's rate.

Both proposals fall within the deliberation range of 10,600 won (a 2.7 percent increase) to 10,860 won (a 5.25 percent increase) set by the public-interest commissioners. The gap stood at 200 won in the previous 11th round — when labor sought 10,820 won and management offered 10,620 won — and has since narrowed to 130 won.

The Minimum Wage Commission plans to continue negotiations. If the two sides ultimately fail to reach an agreement, the commission is widely expected to put the matter to a vote to finalize next year's minimum wage.

The statutory deadline for this year's minimum wage deliberations was June 29, which has already passed.

Taking administrative procedures into account, the commission must submit its proposal to the minister of Employment and Labor by mid-July. The minister must then finalize and officially announce the minimum wage by Aug. 5, with the new rate taking effect Jan. 1 next year.