Construction Workers Must Use 'Electronic Cards' for Commuting... Simplifying Retirement Deduction Process

Amendment to the Enforcement Decree of the Construction Workers Employment Improvement Act Approved at the Cabinet Meeting

Construction site reference photo / Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Kim Bo-kyung] From now on, construction workers will be required to scan an electronic card when entering construction sites. The operation of the construction workers' retirement allowance system is expected to become more convenient.

On the 17th, the government deliberated and approved the amendment to the Enforcement Decree of the Act on the Improvement of Employment for Construction Workers, under the jurisdiction of the Ministry of Employment and Labor, at the Cabinet meeting.

The amendment includes a provision requiring workers to use electronic cards when entering construction sites to prevent omission in reporting the number of days worked for retirement allowance purposes.

The construction workers' retirement allowance system is a scheme where employers pay a retirement allowance contribution of 6,500 KRW per day worked to the Construction Workers' Mutual Aid Association, which accumulates and pays out the funds. It is designed to provide retirement security for construction day laborers who find it difficult to receive severance pay due to their employment type.

With this amendment to the enforcement decree, it is expected that the retirement allowance funds of construction workers will be better protected, while simplifying the employers' reporting of working days.

The newly introduced electronic card system will be mandatorily applied to large-scale construction projects ordered after the 27th, with public projects valued at 10 billion KRW and private projects at 30 billion KRW or more.

It will be gradually expanded and applied to all construction projects subject to mandatory retirement allowance enrollment (public projects of 1 billion KRW and private projects of 5 billion KRW or more) starting from January 2024.

Electronic cards can be issued as credit or debit cards at Hana Bank and post offices.

Construction workers wishing to obtain a card can visit any Hana Bank or post office branch nationwide with their ID card or apply online.

Lee Jae-gap, Minister of Employment and Labor, said, "The introduction of the electronic card system for construction workers signifies a shift from an 'employer-centered' reporting method of working days to a 'worker-centered' approach."

He added, "We will do our best to ensure the electronic card system is smoothly established at construction sites through active promotion of the system and increasing the card issuance rate."

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