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Joseph SY Zoh

CPA, California, a member of AICPA  |  Jz Associates/Tax Accounting Firm Hae-An

F:+82-31-273-5078  |  Skype: joezoh  |  Email: jz@taxjz.com

Web : www.taxjz.com  |  Blogs: www.koreantaxblog.com

Korean Tax Blog

since 1981-

Minimum Hourly Wage

2016: 6,030won(1,260,270=6,030won*209Hours)

2017: 6,470won(1,352,230=6,470won*209Hours)

2018: 7,530won(1,573,770=7,530won*209Hours)

 

Moon regime raised hourly wage 16.4% for 2018FY according to the Minimum Wage Acts and they worried some negative effects to small and medium sized employers thereafter.

So Mr. Moon planned to give a kind of subsidy 130,000won to an employer per month and totally 3Trillion.won per year for every employee whose salary is less than 1.9mil.won, is it crazy!

 

This may hit our economy badly next year in inflation rate, unemployment rate, as well as other area including a competency of our country.

We employer used to pay 300,000won more than this minimum wage since every company used to pay 100,000won lunch meal and 200,000won car allowance, so total salary is 1,873,770won around 1.9mil.won, Great!

 

So my recommendation is to delete all of allowances, and just pay for incentive, position allowance and basic salary only which is legally count for minimum wage.

 

If you charged by this law, you may be jailed for less than 3 years or 20mil.won fine.

 

 

 

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