The two Koreas will sign an agreement to increase wages for North Korean workers at the Gaeseong Industrial Complex this week.

The two sides are expected to agree on the North’s proposed five-percent wage hike. Unification Ministry spokeswoman Lee Jong-joo said the government is in the final process of collecting the opinion of South Korean firms operating in the industrial park.

In June, Pyongyang demanded that South Korean firms increase wages by four times to 300 U.S. dollars. However, it withdrew the initial demand last week and proposed the five-percent hike.