최저임금의 합리적 인상방안에 관한 소고

Abstract

The rapid raise of the minimum wage of 2017 and 2018 caused a severe nationwide debate over the effect of the minimum wage rise on the employment rate. It is still on debate and the conclusion is not yet made, but it seems that a proper adjustment of the speed of the raise is needed at this point of time, given the current labor market situation and employment rate. Nevertheless, I think minimum wage and its continuous raise is necessary for the enhancement of the substantial living standards of the low income laborers in the long term. The crucial point is how to make the minimum wage increase at a proper ratio in terms of the economic protection guideline for the low income laborers, while it does not adversely affect the employment status of those laborers. Our government, also under the recognition of the rapidity of the recent minimum wage rise, introduced job funds system in 2018, which is to reimburse the raise amount directly to the employers who paid for the recent minimum wage difference to their employee workers. In my opinion this type of direct reimbursement is not desirable, in that it is not really given out of the employers’ pockets to the employee workers, but that it is given from the government to the workers just through the hands of the employers. We should not forget that the final goal of the minimum wage regulation is to improve the quality of the labor force by guaranteeing a certain minimum level of wages to employees, thereby contributing to the sound development of the national economy. To achieve the goal, we need a more specific and careful plans to further increase the minimum wage acceptable for both sides of employers and employees in the long term. In this regards, I think we had better apply more diverse welfare services in-kind benefits, e.g. food stamps, housing benefits, medical benefits, child care and other educational and support activities to the specific needs of the low income employees. I would also like to suggest a more lenient legislation of the labor encouragement subsidies of the ‘Restriction of the Special Taxation Act’, so that the low income employees will be endowed with substantially more income, by widening the income brackets of their tax benefits. In addition to that, tax benefits legislation for employers who raise the minimum wage for their employees outstandingly is also recommendable, so that sustainable minimum wage increase will continue in the labor market, while promoting the willingness of both employers and employees to continuously participate in the labor market. There have been voices about the readjustment of the calculation of the minimum wage, and differentiation of minimum wages vis-a-vis different types of business, or working areas, etc. Given all the social and financial circumstances of Korea, I don’t think we need any readjustment of the calculation or differentiation of the minimum wage immediately. Such matters, in my opinion, are not the ones to be decided shortly, but need to be pondered over a period of years to come.