The new minimum wage taking effect in January 2010 will rise 2.75 percent to W4,110 an hour (US$1=W1,273). The Minimum Wage Council at the Ministry of Labor on Tuesday said it set the minimum wage for next year after a vote of representatives from labor, management, and public interest groups. That brings the daily minimum wage to W32,880 for an eight-hour working day. The minimum wage for this year is W4,000 per hour.

The council says the decision will increase the wages of some 2.57 million workers.

The increase rate is the second lowest after 2.7 percent during the financial crisis in 1998. Earlier this year, labor groups called for an increase of 28.7 percent to W5,150, while employers suggested cutting it by 5.8 percent.

The minimum wage applies to all workers except domestic staff. It will be officially be announced on Aug. 5 and take effect in January after a formal appeal procedure for labor and employers organizations.