The Minimum Wage Commission will hold its first plenary session on January 21 to determine next year's minimum wage. Labor groups are demanding a significant increase, arguing that this year's minimum wage rose only 2.9% from the previous year, setting the stage for intense negotiations between labor and management. This session will mark the first full-scale discussion on whether to apply minimum wage standards to "contract workers" such as delivery riders and courier drivers, as labor groups have advocated.
Minister of Employment and Labor Kim Young-hoon stated in his review request that "the commission should consider whether to set separate minimum wages for contract-based (or similar) wage workers for whom it is deemed inappropriate to determine minimum wages on an hourly, daily, weekly, or monthly basis."
Applying minimum wage standards to contract workers is not a matter to be decided by majority vote at the commission. Contract workers, including platform workers and special employment workers, are compensated based on performance metrics such as the number of deliveries rather than hours worked. Given the vast differences in types of contract workers and their working conditions, it is questionable whether calculating a minimum wage for them is even feasible.
Moreover, the Minimum Wage Commission is only authorized to deliberate and determine minimum wage levels—it has no legal authority to expand the definition of workers. Courts currently recognize "worker status" only when contract workers are under the substantial direction and supervision of an employer. Business groups argue that extending minimum wage coverage to all contract workers would violate existing law. This is precisely why public interest members of the commission drew a clear line last year, stating that determining whether and how to apply minimum wages to contract workers falls outside the commission's jurisdiction.
The intent to guarantee basic legal rights and minimum living costs for workers in blind spots is understandable. However, there are concerns this could trigger a "paradox of good intentions," including increased costs for self-employed business owners and job losses. With artificial intelligence rapidly transforming the very concepts and forms of employment, forcing outdated "worker standards" across all occupations would stifle innovation industries.
The "Worker Presumption Act" should not be pushed through unilaterally by the ruling party and government. Small business associations are crying out that it amounts to "a death sentence forcing social insurance premium bombs and chain bankruptcies." Labor policies involving conflicting interests should be implemented through social compromise. Expanded application of minimum wages must also go through tripartite agreement procedures centered on the Economic, Social and Labor Council.
