South Korea Rejects Separate Minimum Wage for Contract Workers Like Delivery Riders

A proposal to establish a separate minimum wage for contract workers, such as delivery riders, has been rejected by the Minimum Wage Committee. This decision means these workers, who are compensated based on performance rather than fixed working hours, will not be subject to a distinct minimum wage. Contract workers, including gig economy participants like delivery riders and couriers, are not legally classified as employees, thus falling outside the scope of the Labor Standards Act and its minimum wage regulations. Labor unions had been advocating for the inclusion of contract workers under the minimum wage system, starting with the 2025 minimum wage deliberations. The issue gained significant traction this year when the Minister of Employment and Labor requested a review of whether a separate minimum wage could be set for contract or similarly compensated workers. Union representatives continued to press for this application during committee meetings. Ryu Ki-seop, the Korean Confederation of Trade Unions' secretary-general and a labor representative on the committee, argued that focusing solely on legal interpretations of contract work would hinder progress in extending minimum wage coverage.

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Focusing solely on legal interpretations of contract work would hinder progress in extending minimum wage coverage.