[Anchor]

Can a minimum wage be applied to workers who are paid based on the number of tasks they perform, such as delivery riders, home appliance installation technicians, and private tutors? We have obtained a report commissioned by the government regarding a minimum wage for contract-based labor. The conclusion is that it is possible to apply a minimum wage to all of these occupations.

Here is an exclusive report by Jeon Hyeong-u.

[Reporter]

This report was commissioned by the Ministry of Employment and Labor to the Korea Labor & Society Institute and submitted to the Minimum Wage Commission this year.

It contains the results of a survey on whether it is possible to apply a minimum wage to contract-based workers, such as special employment workers and platform workers, who are not recognized as employees under the Labor Standards Act.

The study surveyed approximately 1,400 individuals across six occupations—delivery riders, parcel delivery drivers, designated drivers, private tutors, care and domestic workers, and home appliance installation technicians—and conducted interviews with 23 of them.

Among the respondents, 64 percent stated that they earn less than the statutory minimum wage.

[Kim Mi-rye / Private Tutor: Even if I work outside for about 12 hours, my monthly income is around 1.4 million won. When you calculate it, it comes out to about 6,850 won per hour.]

Furthermore, 93 percent reported that their compensation is unilaterally determined by companies or platforms, and 74 percent said they receive work instructions from them.

In particular, for private tutors and home appliance installation technicians, the level of subordination to the employer was found to be even higher than that of typical office workers, as companies control their work locations and hours.

Delivery riders, parcel delivery drivers, and designated drivers also showed a significant degree of subordination, as they must follow the companies' work rules despite having the freedom to choose their working hours, and they are not allowed to have others perform their work on their behalf.

[Jung Heung-jun / Professor at Seoul National University of Science and Technology (Participated in the study): We determined that a minimum compensation system could be applied, perhaps by adopting methods similar to the Safe Rates System used in the freight transport industry, where wages are determined annually.]

The report concluded that an hourly minimum wage could be applied to private tutors and home appliance installation technicians, while a minimum wage per task could be introduced for the remaining occupations, including delivery riders, parcel delivery drivers, and designated drivers.

(Video reporting: Kang Dong-cheol, Kim Hyun-sang | Video editing: Park Na-young)

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[Anchor]

Reporter Jeon Hyeong-u, who covered this story, is here with us.

Q. What kind of report is this?

[Reporter Jeon Hyeong-u: This report was created as supporting material for the Minimum Wage Commission to discuss the application of a minimum wage for contract-based labor this year. It was commissioned by the Ministry of Employment and Labor. It was kept private by the commission after the business sector opposed its disclosure, claiming that the research institute had a pro-labor stance.]

Q. Will a contract-based minimum wage be effective?

[Reporter Jeon Hyeong-u: I met with a delivery rider who told me that the pay per delivery, which used to be 3,000 won, has dropped to the 2,000-won range, and in some regions or time slots, it has even fallen to the 1,000-won range. The biggest problem is that livelihoods are being threatened as platforms unilaterally lower compensation. Labor groups argue that applying a minimum wage per task can prevent this uncertainty. The six occupations covered in this study involve people who work manually on their own, and they are estimated to total 650,000 people.]

Q. Who would pay the minimum wage?

[Reporter Jeon Hyeong-u: For delivery riders or designated drivers, it would be the platform companies; for parcel delivery drivers, it would be the delivery agencies; and for private tutors, it would be the tutoring companies. The idea is to impose a legal obligation on the companies that have been running their businesses through these workers to pay them at least the minimum wage. However, there is a possibility that companies might pass the costs on to consumers due to the burden of labor costs.]

Q. When could it be introduced?

[Reporter Jeon Hyeong-u: Introducing a minimum compensation system for special employment and platform workers is part of the current government's national agenda. The Minister of Employment and Labor requested that the Minimum Wage Commission discuss this issue this year, but it was rejected by a vote of 11 in favor and 15 against. As labor and management are in conflict over this issue, the casting vote lies with the public interest commissioners appointed by the government. Institutional improvement measures recommended by the commission to the government could emerge next year, and as the three-year terms of the public interest commissioners appointed by the previous administration are ending and they are being replaced, next year is expected to be a turning point for the application of a contract-based minimum wage.]