South Korea to hike minimum wage

About 15,000 Nepali EPS workers in the country to benefit South Korea — the most lucrative job destination for Nepali migrant workers — has decided to hike the minimum wage by 7.2 per cent. About 15,000 Nepali Employment Permit System (EPS) workers will benefit from the decision from January 2014. The Minimum Wage Committee of the country has forwarded a proposal to hike the minimum wage to the Ministry of Labour and Employment. Every year, on June 30, the committee takes a decision on wage hike and trade unions can challenge the deci sion by July 16. The decision is finalised on August 1, after approval from the ministry. The current minimum wage in South Korea is about 4,860 won (Rs 410) an hour for standard eight working hours. According to the committee, the salary base for 40 hours in a week is 194,400 won (Rs 16,400) and monthly salary is 1,015,740 won (Rs 85,689). According to the hike, monthly salary of workers will be 1,088,890 won (Rs 91,860). The absolute hike in minimum wage is 73,150 won (Rs 6,171). About 2.65 million low level workers — engaged in physical work — will benefit from the hike. South Korea has been fixing the minimum wage from 1988. Around 15,000 Nepalis are working in South Korea as EPS workers. The hike will also increase other benefits including overtime allowances, bonuses and welfare benefits. Meanwhile, trade unions have been protesting against the hike saying it has not addressed inflation and other living costs. They are demanding for a hike of at least 11 per cent. Trade unions have protested against the 6.1 per cent hike but it has not been readjusted despite immense pressure from workers.