Gyeonggi Province Launches Research on Appropriate Living Wage Standards for 2022 in Corona Era

[Suwon Ilbo = Reporter Park No-hoon] Gyeonggi Province under the 7th Popular Election administration will launch a "2022 Gyeonggi Province Living Wage Calculation Standard Research" beginning in April to determine next year's living wage.

According to Gyeonggi Province on the 30th, this research is designed to derive various measures to establish reasonable calculation grounds for next year's living wage, and will be conducted through the Gyeonggi Research Institute from April to August.

Specifically, the 2022 Gyeonggi Province living wage calculation standards will be derived by comprehensively considering household spending and household income, average earned income of regular and irregular workers, and average wage increase rates.

Additionally, the research includes analysis of the achievements and issues of the living wage system that has been promoted thus far in preparation for the upcoming minimum wage era of 10,000 won, and also incorporates the future development direction of the living wage system going forward.

The target population to receive living wage benefits is estimated to reach approximately 2,200 people, similar to last year, including employed workers belonging to the province and its invested/endowed institutions. The standards will also be used as reference calculation criteria for cities and counties within the province that have already enacted ordinances implementing the living wage system.

Based on the research results, the province plans to hold a "2022 Gyeonggi Province Living Wage Calculation (Draft) Public Discussion Forum" to gather opinions from various sectors on appropriate living wages.

Following this, the living wage will be finalized through "Gyeonggi Province Living Wage Committee Review" to be held in August, and is scheduled to be formally announced by September.

Kim Gyu-sik, head of the Department of Labor, said, "We expect improved living conditions and quality of life for workers through reasonable living wage calculations," and added, "We hope that the living wage in the public sector expands to the private sector, contributing to income increases and consumption activation for vulnerable workers struggling due to COVID-19, revitalizing the stagnant local economy, and realizing a society that respects labor."

A "living wage" refers to wages determined in consideration of the minimum wage and other factors to enable workers to support their families and maintain human dignity and substantive living in fields such as education and culture.

Since enacting the "Gyeonggi Province Living Wage Ordinance" in 2014 as the first such ordinance among provincial local governments, the province has consistently expanded the scope of recipients. Currently, the province and its affiliated public institutions provide living wages to direct and indirect workers they employ.

The 2021 living wage was presented as 10,428 won to 10,580 won based on relative poverty baseline, housing costs, education expenses, transportation costs, communication fees, and the economic impact of COVID-19. Taking into account difficult economic conditions for workers and the minimum wage increase rate (1.5%), it was determined at 10,540 won.

This is a 1.7% increase from the 2020 living wage of 10,364 won.