2027 minimum wage ₩10,700: notify workers by December 31, 2026

Every employer in Korea must notify workers of the new minimum wage before it takes effect. This guide is for foreign founders and managers, and for HR and payroll staff. The 2027 minimum wage is ₩10,700 an hour, and the notice is due by December 31, 2026.

Notify first: the rule and the deadline

When the rate is announced each August, companies usually plan January payroll first. But Article 11 of the Minimum Wage Act (최저임금법) adds a separate duty to make the minimum wage known to workers (주지 의무).

• Legal basis: Minimum Wage Act Article 11 and Article 11 of its Enforcement Decree (시행령).
• Who: every employer covered by the Act, meaning every company with workers.
• How: post it where workers can easily see it, or announce it widely by another suitable method.
• When: by the day before the minimum wage takes effect.
• Penalty: an administrative fine (과태료) of up to ₩1 million (Article 31(1), item 1).

The 2027 minimum wage was announced in Ministry of Employment and Labor Notice No. 2026-60 (고용노동부고시 제2026-60호) of August 5, 2026, and takes effect on January 1, 2027 (Article 10(2)). The notice deadline is therefore December 31, 2026.

The 2027 figures

The 209 hours come from the formula in Article 5(1), item 3 of the Enforcement Decree: 40 contractual hours a week plus 8 hours of paid weekly holiday (주휴) make 48 hours, multiplied by the average number of weeks in a year and divided by 12. For staff who work fewer than 40 hours a week, put their own contractual working hours (소정근로시간) into the same formula.

The four items to notify, with a sample notice

Article 11(1) of the Enforcement Decree lists four items. A notice with only the amount misses three of them.

1. The minimum wage for the workers covered: ₩10,700 an hour for 2027. Add the probation rate if anyone receives it.
2. Wages not counted toward the minimum wage under Article 6(4) of the Act (next section).
3. Workers excluded from the minimum wage: only people approved by the Minister of Employment and Labor under Article 7; if none, write "None".
4. The date the minimum wage takes effect: January 1, 2027.

Under Article 11(2) of the Decree, the deadline is the day before the effective date, so a notice posted on January 1 is late.

This sample follows the order of Article 11(1); change only the bracketed parts.

The law requires only an easily visible place or another suitable method, so keep three records to avoid disputes:

• a photo or screenshot that shows the posting date;
• for an internal notice or email, the sending date and recipients;
• a record of the separate notice to remote workers.

Wages not counted toward the minimum wage

Notice item 2 is the one most often wrong. Article 6(4) counts wages paid regularly at least once a month toward the minimum wage, except these:

• Item 1: wages other than those for contractual working hours or days, as set by Ministry of Employment and Labor Ordinance.
• Item 2: the part of monthly bonuses and similar pay up to a set percentage of the monthly minimum wage equivalent.
• Item 3(a): welfare-type pay, such as meal, lodging and transport allowances, given in a form other than money.
• Item 3(b): the part of welfare-type pay in money up to a set percentage of the monthly amount.

Article 2 of the Addenda to Act No. 15666 lowered the percentages for items 2 and 3(b) year by year, and they have been 0/100 since 2024. So bonuses and meal allowances paid monthly in cash count in full toward the minimum wage in 2027. These are still not counted:

• bonuses paid quarterly, half-yearly or yearly (they are not paid at least once a month);
• welfare benefits given in kind, such as meals or housing;
• wages outside contractual hours under item 1.

Checks to finish by December 31

A correct notice does not cover underpaid January wages, which carry heavier penalties. Check these in order:

1. Hourly equivalent for each employee: divide monthly pay by that employee's monthly reference hours for the minimum wage and confirm the result is at least ₩10,700. Calculate part-time workers separately.
2. Probation reduction: Article 5(2) requires a fixed-term contract of one year or more, a date within 3 months from the start of probation, and a job that is not a simple manual job designated by the Minister of Employment and Labor. If any one is missing, pay ₩10,700 in full.
3. Employment contracts: any pay term below the minimum wage is void and is deemed an agreement to pay the minimum wage (Article 6(3)).
4. Existing pay levels: you cannot lower existing wages because of the minimum wage (Article 6(2)).
5. Changing the bonus cycle: to count a quarterly bonus by paying it monthly at the same total, you must hear the opinion of a majority union or of a majority of workers (Article 6-2). Failing to do so carries a fine of up to ₩5 million (Article 28(3)). If you change your work rules (취업규칙), see also Filing a work rules change.
6. Subcontracting rates: if the client placing a contract (도급인) sets the labor cost per unit below the minimum wage, it is jointly liable with the contractor doing the work (수급인) (Article 6(7) and (8)).

Penalties

The head of the regional employment and labor office (지방고용노동관서) imposes the administrative fine (Enforcement Decree Article 21-2). To contest it, file an objection within 30 days of being notified (Article 31(3)). The amount for each violation is in a table (별표) annexed to the Enforcement Decree.

Checklist

• Notify all four items by December 31, 2026.
• Base the "wages not counted" line on what you actually pay.
• Keep dated proof of the notice.
• Check that each employee's January pay is at least ₩10,700 an hour.
• Apply the ₩9,630 probation rate only if all Article 5(2) conditions are met.
• Do not lower existing wages because of the minimum wage.