Half-Year 30% Discount on Industrial Accident Insurance Premiums... Employment Insurance Premium Payment Deadline Extended by 3 Months

Government Announces Measures to Ease Social Insurance Premium Burden in Response to COVID-19
Targets Businesses with Fewer Than 30 Employees, Solo Self-Employed, and Special Types of Workers

[Asia Economy Reporter Kim Bo-kyung] The government has decided to reduce workers' compensation insurance premiums by 30% for six months for workplaces with fewer than 30 employees and to extend the payment deadline by three months. Employment insurance premiums will have no reduction but the payment deadline will be extended by three months.

On the 30th, the government held the '3rd Emergency Economic Meeting' chaired by President Moon Jae-in and announced measures to ease the social insurance premium burden for groups struggling due to the novel coronavirus infection (COVID-19).

First, workers' compensation insurance premiums will be reduced by 30% for six months starting from this month's payment, and the payment deadline will be extended by three months. The targets are workplaces with fewer than 30 employees, self-employed individuals with one person, and workplaces in special types of employment (teukhyung hyeong geunro jongsaja, teukgo) occupations. It is expected that 2.59 million workplaces and 80,000 teukgo workers will benefit. The deferral and reduction of workers' compensation insurance premiums are expected to have effects of 735.2 billion KRW and 443.5 billion KRW respectively. However, individual applications are required to extend the payment deadline.

Employment insurance premiums will only have the payment deadline deferred by three months without any discount. The payment deadline for this month's employment insurance premiums will be extended from April 10 to July 10, and the April premiums will be extended to August 10. This applies to workplaces with fewer than 30 employees. If 100% of the eligible workplaces apply, employment insurance premiums amounting to 788.8 billion KRW for 6.12 million workers and 2.28 million workplaces will be deferred.

The Ministry of Employment and Labor explained that they did not take measures to reduce employment insurance premiums because "it is more effective to support groups facing difficulties in the labor market through increased expenditures such as employment retention subsidies and unemployment benefits."

This content was produced with the assistance of AI translation services.