Beauty Salons Worst Offenders in Undercutting Minimum Wage
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Restaurants, beauty shops and gas stations are the worst offenders among small businesses failing to abide by wage and other working regulations.
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According to an investigation by the Labor Ministry announced on Monday, 2,424 out of 3,002 businesses or 80.7 percent were cited for 4,613 violations like paying less than the minimum wage or withholding back pay.
Some 63.3 percent of restaurants, 62.9 percent of gas stations and 55 percent of beauty shops failed to give staff proper contracts.
Beauty salons are the worst offenders in failing to pay the full minimum wage with 7.7 percent, while the rate was 4.1 percent for restaurants and 3.8 percent for gas stations. Some 37 percent failed to pay their staff on time.
The ministry said it will check more thoroughly whether small businesses employing less than 30 staff pay the minimum wage, which has been raised to W7,530 an hour for this year (US$1=W1,068).