Korea's minimum wage for 2026 and 2027
The minimum wage is KRW 10,320 per hour in 2026 and rises 3.7% to KRW 10,700 per hour on 1 January 2027. There is a single nationwide rate, with no regional or industry variation.
| Measure | 2025 | 2026 | 2027 |
|---|---|---|---|
| Hourly minimum wage | KRW 10,030 | KRW 10,320 | KRW 10,700 |
| Monthly minimum (209 hours) | KRW 2,096,270 | KRW 2,156,880 | KRW 2,236,300 |
| Change vs. prior year | — | +2.9% | +3.7% |
The monthly figure is not 40 hours times four weeks. It assumes 209 paid hours: a 40-hour week plus 8 hours of weekly paid holiday (주휴수당, juhyu sudang), multiplied by the average 4.345 weeks in a month. Employees who work 15 or more hours a week are entitled to that paid weekly holiday, so budget against the monthly figure rather than a raw hourly multiplication.
The rate is decided each summer by the Minimum Wage Commission (최저임금위원회, Choejeo Imgeum Wiwonhoe), a body of worker, employer and public-interest members, and then formally announced by MOEL. The 2027 rate followed that cycle: decided in July 2026, announced on 5 August 2026.
What counts toward the minimum wage
Base pay plus any bonuses and cash allowances paid at least once a month count; overtime premiums and irregular payments do not. A reform phased in between 2019 and 2024 brought the full amount of monthly-paid regular bonuses and cash welfare benefits into the calculation.
Counted toward the minimum wage:
- Base salary and fixed allowances paid every month
- Bonuses, incentives and similar payments paid at least monthly
- Cash welfare allowances paid monthly, such as meal, transport or housing allowances
Not counted:
- Overtime, night-work and holiday-work premiums
- Bonuses or allowances paid less often than monthly (quarterly, semi-annual or annual)
- Pay for unused annual leave
- Benefits in kind, such as meals provided rather than paid in cash
To test an offer, add up the qualifying monthly pay and compare it with the monthly minimum, or divide it by 209 to get an hourly figure. Example: KRW 2,000,000 base pay plus a KRW 200,000 monthly cash meal allowance gives KRW 2,200,000 of qualifying pay (about KRW 10,526 an hour). That clears the 2026 floor but falls short of the 2027 floor of KRW 2,236,300, so the package must rise by 1 January 2027. Our Korea compensation guide explains how base pay, allowances and bonuses are usually structured.
Who is covered, including foreign employees
The Minimum Wage Act covers all employees regardless of employment type, nationality or visa status: full-time, part-time, fixed-term, temporary and daily workers alike. The main exclusions are businesses that employ only relatives living with the employer and domestic (household) workers.
Two rules adjust how the floor applies:
- Probation: for the first three months of probation, you may pay 90% of the minimum wage, but only if the contract runs for one year or more and the job is not simple manual work. After three months, the full rate applies.
- Part-time staff: the hourly minimum applies to every hour worked, and employees on 15 or more hours a week also earn the paid weekly holiday.
The Act protects employees, not genuine independent contractors. If a "contractor" works like an employee (fixed hours, supervision, exclusivity), Korean authorities can treat the relationship as employment, with the minimum wage and every other statutory entitlement attached. Our employment types guide covers how to choose the right model.
Penalties for paying below the minimum
Underpayment is a criminal offense, not just a back-pay issue. An employer who pays below the minimum wage faces imprisonment of up to 3 years or a fine of up to KRW 20 million, and both can be imposed together. When the violation happens in the course of a company's business, both the responsible individual and the company can be punished.
Employers must also tell staff the applicable minimum wage, for example by posting it in the workplace, before it takes effect. Failing to do so draws an administrative fine of up to KRW 1 million. Before 1 January 2027, review everyone whose qualifying pay works out below KRW 10,700 an hour, update payroll, and post the new rate. For the wider rulebook on hours, leave and termination, see our Korean labor law guide.
The full cost of a minimum-wage hire
In 2026, a full-time employee on the minimum wage costs roughly KRW 2.56–2.58 million a month once employer social insurance and a severance accrual are added.
| Cost item (2026) | Basis | Monthly amount |
|---|---|---|
| Minimum monthly wage | 209 hours × KRW 10,320 | KRW 2,156,880 |
| Employer social insurance | about 10.5–11.5% of wages | about KRW 226,000–248,000 |
| Severance accrual | about one-twelfth of annual wages | about KRW 179,740 |
| Total | about KRW 2.56–2.58 million |
The employer's share of the four major insurances (4대보험, sadae boheom) in 2026:
- National Pension: 4.75% (9.5% in total, split equally), rising to 5% each in 2027 as the total reaches 10%.
- Health insurance: 3.595% (7.19% in total, split equally). The rate is frozen at 7.19% for 2027.
- Long-term care: 13.14% of the health premium, about 0.945% of wages in total, split equally.
- Employment insurance: 0.9% plus an employer-only 0.25–0.85% that depends on company size.
- Industrial accident insurance: employer-only, 1.47% on average in 2026, varying by industry.
For office-type roles, that adds up to roughly 10.5–11.5% on top of gross pay, more in industries with higher accident-insurance rates. For 2027, the monthly base rises to KRW 2,236,300 and the employer pension share rises by 0.25 points; assuming other rates stay at 2026 levels, budget roughly KRW 2.66–2.69 million a month. Our tax and social insurance guide walks through each line, plus the employee's income tax withholding.
Other statutory costs sit on top:
- Premium pay: overtime, night work (22:00–06:00) and holiday work earn at least a 50% premium; holiday work beyond 8 hours earns 100%. These premiums do not count toward the minimum wage, so they are a genuine add-on.
- Annual leave: 1 paid day per month of service in the first year (up to 11), then 15 days after one year with at least 80% attendance, plus 1 day every two years from the third year, up to 25.
- Severance pay (퇴직금, toejikgeum): at least 30 days' average wage per year of service for employees with one year or more of service working 15 or more hours a week, paid within 14 days of leaving. See severance pay in Korea, explained.
Most professional roles pay well above the floor, but the minimum wage still anchors part-time, entry-level and support positions, and it sets the legal baseline for your whole Korean payroll. For a full cost model at professional salary levels, see the cost of hiring an employee in Korea.
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Frequently asked questions
What is Korea's minimum wage in 2027?
It is KRW 10,700 per hour from 1 January 2027, up 3.7% from KRW 10,320 in 2026. For a full-time employee on 209 paid hours, the monthly minimum is KRW 2,236,300. The Minimum Wage Commission set the rate in July 2026 and MOEL announced it on 5 August 2026.
Does the minimum wage apply to foreign employees and part-timers?
Yes. The Minimum Wage Act applies to every employee regardless of nationality, visa status or employment type, with no separate rate for foreign workers. Part-time staff must be paid at least the hourly minimum for every hour, and those working 15 or more hours a week also earn the paid weekly holiday.
Can I pay less than the minimum wage during probation?
Only in limited cases. You may pay 90% of the minimum wage for the first three months of probation if the employment contract runs for at least one year and the job is not simple manual work. Otherwise, the full minimum wage applies from day one.
Does the minimum wage apply to remote contractors in Korea?
It applies to employees, not to genuine independent contractors. If a contractor in practice works like an employee, with fixed hours, close supervision or exclusivity, the relationship can be reclassified as employment, bringing the minimum wage, social insurance and severance with it. Our guide to hiring remote workers in Korea covers the safer structures.
Sources
- Korea JoongAng Daily — Hourly minimum wage set at 10,700 won for 2027 — 2027 rate and 3.7% increase
- Minimum Wage Commission — Employer obligations — notice duty, underpayment penalty (3 years / KRW 20 million) and KRW 1 million notice fine
- KOTRA — 2025 Labor Laws in Korea (PDF) — 2025 rate (KRW 10,030; KRW 2,096,270 monthly), coverage of all workers, probation reduction
- Labor Law Firm SAERO — 2025 Minimum Wage in Korea: Allowances Included — which payments count and full inclusion from 2024
- Korea Legislation Research Institute — Minimum Wage Act (English) — scope exclusions and liability of the company alongside the offender
- National Health Insurance Service — Contribution rate — 2026 health insurance rate of 7.19%, split equally
This article is general information, not legal or tax advice. Rules change — confirm specifics with a licensed Korean labor attorney (노무사) or tax accountant.