The South Korean government Wednesday announced next year’s minimum wage at 6,030 won ($5.14) per hour, up 8.1 percent from this year -- despite the ongoing opposition from labor unions and management -- vowing to strengthen the enforcement to prevent fallout.

The hourly wage of 6,030 won translates to 48,240 won a day and 1.26 million won a month for those who work eight hours a day.

The government said the pay raise will affect an estimated 3.42 million people, which makes up 18.2 percent of all the salaried workers in the nation.

Last month, employers, employees and labor experts of the Minimum Wage Council agreed to raise the minimum wage next year by 8.1 percent from the current 5,580 won, the highest increase since 2008.

The government confirmed the plan despite vocal opposition from both the labor and management blocs.

The nation’s two largest trade unions -- the Korean Confederation of Trade Unions and the Federation of Korean Trade Unions -- filed an appeal to the Labor Ministry, claiming it is not enough to boost low-income earners’ quality of life.

The employers’ representatives, for their part, also raised objections, asking the ministry to reconsider the “drastic” hike that could deal a blow to small and medium-sized companies.

The labor ministry, however, refused to accept their pleas, pushing for the hike proposed by the Minimum Wage Council.

The council also agreed to stipulate hourly and monthly wages in the employment contract to endorse workers’ rights to be paid for a day off work when working 40 hours a week.

Currently, only hourly wages are written in the contract, which labor experts and laborers in the council saw as encouraging employers to dodge legal obligations to give staff members paid holidays.

In response to concerns over the growing number of underpaid workers here, the government vowed to ramp up its crackdown on businesses failing to pay their staff the minimum wage.

It plans to impose a financial penalty on lawbreakers on the spot to more effectively induce them to abide by the law. The relevant bill is held up at the National Assembly, it said.

Nearly 15 percent of salaried workers in South Korea are paid the legal minimum wage or less as of 2013, the highest rate among OECD member countries, according to a recent study.

The labor unions have lashed out at the government for its poor enforcement of the law.

Talks among labor, management and experts collapsed several times due to continued clashes over the extent of the hike, failing to meet a June 29 legal deadline.

The negotiations came to an end on July 9, when employers and labor experts put to vote the increase plan. The labor representatives in the council boycotted the vote in protest.

The labor unions initially demanded a 79 percent rise to 10,000 won, arguing that the hike would curb the nation’s income inequality and spur consumer spending.

Business leaders, on the other hand, campaigned for a freeze, citing possible job losses and soaring production costs, especially for smaller companies.

Since the government adopted the minimum wage in 1989, the Minimum Wage Council has set the minimum wage through discussion. This year, the discussion began in early June.

By Ock Hyun-ju (laeticia.ock@heraldcorp.com)