(evolution of wage system) Seniority-based wage system in wartime and right after the war Job-based wage system advocated in 1950s and 1960s Skill-based wage system prevalent until 1980s Performance-based wage system advocated recently
(1) Minimum Wage System ILO Convention No.26 on Minimum Wage adopted in 1928 required involvement of social partners. 1939 Wage Control Order fixed maximum wage rate. 1940 revised WCO fixed minimum wage rate.
(a) Pseudo Minimum Wage System 1947 Labor Standards Law provided on minimum wage, but not implemented. Ministry of Labor tried to fix them in 4 sectors, but failed in 1950. MoL promoted pseudo minimum wage rate agreed among employers (not among social partners). 1959 Minimum Wage Law provided two types: collective agreement type and employers agreement type (pseudo minimum wage).
(b) Proper Minimum Wage System 1968 revised MWL abolished the pseudo type and established minimum wage fixed by tripartite Council. Regional minimum wage fixed in each prefecture. Sectoral minimum wage fixed for specific sectors. Sectoral minimum wage lost criminal effect in 2007 revision. Minimum wage level is very low (36% of the average wage). 2007 revision required consideration on public assistance payment level/
(2) Minimum Wage for Industrial Homeworkers 1959 Minimum Wage Law provided minimum homework wage (conditional on fixed minimum wage), but no such wage fixed. Industrial accidents by homeworkers pushed the fixing in 1966. 1970 Industrial Homework Law established minimum homework wage fixed by Homework Council. ILO Convention No.177 on Home Work adopted in 1996.
(3) Payment of Unpaid Wages Unpaid wage cases after oil crisis 1976 Security of Wage Payment Law obliged employers to preserve savings. Payment service of unpaid wages by government include not only bankruptcy but also other insolvency. Age at retirement day Maximum limit of unpaid wages Maximum limit of payment 45+ 30-44 -29 \3.7 million \2.2 million \1.1 million ×0.8 = \2.96 million ×0.8 = \1.76 million ×0.8 = \0.88 million