The 2023 minimum wage has been decided. At this time of year, a meeting is held to determine the minimum wage for the next year, and it seems to have been a more intense meeting than expected due to the wide gap between the prices offered by the workers and the employers. Finally, the 2023 minimum wage was set at 9,620 won, an increase of 460 won (about 5%) from this year’s minimum wage of 9,160 won. 2022년 연봉 실수령액표
The amount suggested by the worker was 10,080 won, and the amount suggested by the employer was 9,330 won. The difference between them is 750 won, which seems a small difference at first glance, but the difference in positions between them is clear because there is a monthly salary difference of over 200,000 won. It’s a negligible amount when calculated as an annual salary. 이베이스매뉴얼
The workers’ side expressed a voice that the real wage would decrease because there was only a 0.3% difference from this year’s inflation forecast of 4.7%, and the employer wanted the increase, while the long-term economic downturn and the risk of an interest rate hike overlapped the risk of small business owners. They shouted that it was an hourly wage that did not take into account ability to pay.
As their differences of opinion did not narrow, the public interest chairperson suggested a median price of 9,620 won, and in the end, the 2023 minimum wage was 9,620 won. However, it seems that these results are unreliable, and as workers and employers raise objections, please note that there is a possibility of change in the future.
What is the minimum wage?
It is a system created by the state to protect the basic income of workers. Although the Labor Standards Act was introduced in 1953, it began to be implemented in earnest on January 1, 1988.
Every May to June, the Minister of Labor holds the Minimum Wage Committee to determine the wage level for the following year in consideration of workers’ basic cost of living, wage levels in the same industry, labor productivity and income distribution. The Minimum Wage Committee consists of 9 workers, 9 employers, and 9 public interest members designated by the Minister of Employment and Labor. It is composed of a total of 27 people, and if ‘more than half attend, more than half agree’ for each proposed wage level, it will be voted on and the final result will be announced by August 5th.
This year marks the 35th anniversary of the minimum wage. It has been rising steadily while exceeding the inflation rate. In 2018, during the administration of former President Moon Jae-in, it rose 16.4%, showing the highest rate of increase. Compared to the previous 2.75% ~ 8.1%, this is a really huge increase.
The minimum wage in 2022 was 9,160 won per hour. Compared to the previous year, it rose by 5.1%, but the inflation rate was only 0.7%. However, this year’s inflation rate is 4.7%, but the wage increase rate is only 5%, similar to the previous year. In terms of real wages, nothing has really changed.
So far, we have looked at the 2023 minimum hourly wage. Now is the time to calculate how much your real monthly salary will be according to the 2023 minimum wage and what will be your actual annual salary through the wage calculator provided by Naver.
2023 Minimum Wage Salary Real Amount Calculator
2023 Minimum Wage Monthly Real Income Calculator. The total working hours per month was calculated as 209 hours, including 8 hours a day, 5 days a week, and 35 hours per week.
Workers on the 2023 minimum wage will receive KRW 2,010,580 for working for one month. However, since the government deducts tax and insurance without receiving the full amount, the expected monthly real income will be reduced to 1,815,250 won.
2023 Minimum Wage Annual Real Income Calculator
First of all, this is the 2023 Minimum Wage Annual Real Income Calculator. After calculating the monthly wage according to the minimum wage, I also calculated the actual annual salary. The minimum wage in 2023 will be 24,126,960 won. Similarly, excluding the national pension, health and employment insurance, income tax, etc., the actual amount received was 21,783,000 won, which is an increase of about 1 million won compared to this year.
Based on a simple calculation, it takes about 4 years and 6 months to raise 100 million won without spending a single penny while receiving the minimum wage. However, after the workers’ basic living expenses and various insurance and utility bills are deducted, the actual amount (savings) that can be saved will be around 700,000-800,000 won at most. If you are an independent beginner or if you have a family to support, there are cases where you save much less or have little or no savings.
Inflation goes up, insurance premiums go up, and various living expenses go up. Moreover, this year, the electricity bill goes up step by step in April, July, and October, and the unemployment insurance also increases from this month, so it seems to be getting tougher.
2023 Minimum Wage Simulator
If there are allowances, bonuses, welfare expenses, etc. in addition to the basic fixed salary (basic salary), the actual amount received may differ from the table above. If it does not match your calculation, please refer to the minimum wage calculator provided by the Ministry of Employment and Labor for more accurate calculation.
Annual salary 10 million won – annual salary 24 million won
Salary
real amount
deductible total
National Pension
Health Insurance
long-term care
Employment Insurance
Income tax
local income tax
10 million won
771,033
62,300
32,990
22,870
1,680
4,760
0
0
11 million won
847,286
69,380
36,740
25,470
1,870
5,300
0
0
12 million won
923,500
76,500
40,500
28,080
2,070
5,850
0
0
13 million won
998,863
84,470
44,240
30,670
2,260
6,390
830
80
14 million won
1,073,736
92,930
47,990
33,270
2,450
6,930
2,090
200
15 million won
1,148,580
101,420
51,750
35,880
2,640
7,470
3,350
330
16 million won
1,223,463
109,870
55,490
38,470
2,830
8,010
4,610
460
17 million won
1,297,826
118,840
59,240
41,070
3,030
8,550
6,320
630
18 million won
1,372,040
127,960
63,000
43,680
3,220
9,100
8,150
810
19 million won
1,446,313
137,020
66,740
46,270
3,410
9,640
9,970
990
20 million won
1,520,566
146,100
70,490
48,870
3,600
10,180
11,790
1,170
21 million won
1,594,790
155,210
74,250
51,480
3,790
10,720
13,610
1,360
22 million won
1,669,043
164,290
77,990
54,070
3,990
11,260
15,440
1,540
23 million won
1,743,296
173,370
81,740
56,670
4,180
11,800
17,260
1,720
24 million won
1,817,310
182,690
85,500
59,280
4,370
12,350
19,270
1,920
Annual salary 25 million won – annual salary 38 million won
25 million won
1,890,463
192,870
89,240
61,870
4,560
12,890
22,100
2,210
26 million won
1,963,596
203,070
92,990
64,470
4,750
13,430
24,940
2,490
27 million won
2,036,710
213,290
96,750
67,080
4,950
13,970
27,770
2,770
28 million won
2,109,853
223,480
100,490
69,670
5,140
14,510
30,610
3,060
29 million won
2,179,916
236,750
104,240
72,270
5,330
15,050
36,240
3,620
30 million won
2,248,340
251,660
108,000
74,880
5,520
15,600
43,330
4,330
31 million won
2,316,813
266,520
111,740
77,470
5,710
16,140
50,420
5,040
32 million won
2,384,896
281,770
115,490
80,070
5,900
16,680
57,850
5,780
33 million won
2,451,470
298,530
119,250
82,680
6,10