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Minimum Wage System
Minimum Wage System
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Determination unit
- Minimum wage shall be expressed in hourly, daily, weekly or monthly terms. In such cases, where the minimum wage is determined in daily, weekly, or monthly terms, the amount shall also be expressed as an hourly rate.
Wage elements counted
- The wage, for the purpose of calculating minimum wage rates, is defined as follows
Wage for the purpose of Calculating minimum wage rate = Wage as define in the Labor Standards Act - Wage elements not counted for calculating Minimum wage rates(1+2+3)
Under the Labor Standards Act, wage is defined as "wages, salary and any other kinds of money or valuables, regardless of their titles, which the employer pays to an employee as remuneration for work".
The wage elements not counted for calculating minimum wage rates are:
- 1. Wages other than those paid in a currency
- 2. Wages other than those paid for the contractual working hours or the contractual working days
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3. ⓐ 5% of a monthly bonus based on the monthly conversion amount of the minimum wage
ⓑ 1% of the wages for living subsidy or welfare(such as food, accommodation, and transportation expenses) based on the monthly conversion amount of the minimum wage
>> The part exceeding the above amount(ⓐ, ⓑ) shall be calculated as a minimum wage.
※ All included in 2024
Reference: ｢Minimum Wage Act｣ Article 5, 6 and ｢Enforcement Decree of the Minimum Wage Act｣ Article 2