Employment Insurance Applied to 12 Special Employment Types Including Insurance Planners in July... Insurance Premium Rate 1.4%

Deputy Prime Minister Hong Nam-ki to Preside Over the 30th Emergency Economic Central Countermeasures Headquarters Meeting on the 24th

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is delivering opening remarks at the 'Emergency Economic Central Countermeasures Headquarters Meeting' held on the 24th at the Government Seoul Office in Jongno-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Sejong=Asia Economy Reporter Moon Chaeseok] Starting July 1, the government will begin revising laws to allow special-type workers (teukgo), including insurance planners and 11 other occupations, to enroll in employment insurance.

On the 24th, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, stated at the 30th Emergency Economic Central Countermeasures Headquarters meeting held at the Government Seoul Office, "Following artists, employment insurance enrollment for teukgo workers is scheduled to begin on July 1."

One of the agenda items at the meeting, "Status and Plan for Expanding Employment Insurance Coverage," is part of the government's nationwide employment insurance initiative. The nationwide employment insurance policy aims to ensure that all employed workers are covered by employment insurance by 2025.

The insurance premium rate for teukgo workers has been set at 1.4%, lower than the 1.6% rate for regular employees. Eligibility requirements have been adjusted to consider the characteristics of teukgo occupations, allowing unemployment benefits to be received even in cases of job separation due to income reduction.

Specifically, a beneficiary will be recognized if the wages for the three months prior to separation have decreased by 30% or more compared to the previous year, or if there are five or more months within the 12 months prior to the month of separation where the monthly wage decreased by 30% or more compared to the previous year's monthly average wage.

In cases of job separation due to income reduction, a waiting period of 4 weeks applies if the income decrease rate is 30% or more, and 2 weeks if it is 50% or more.

Deputy Prime Minister Hong said, "We will ensure thorough preparation so that the implementation in July, including the preparation of enforcement ordinances, proceeds without any issues."

The government plans to announce the legislative proposal for public comment for 40 days starting early next month, followed by regulatory review, legal review, and vice-ministerial meetings, aiming to approve the proposal at the Cabinet meeting around June.

According to the nationwide employment insurance roadmap, additional occupations eligible under the current insurance operation system will be identified next year. After conducting occupation-specific surveys in the first half of the year and discussing application plans in the second half, the coverage will be applied starting next year.

The government will also prepare measures to apply employment insurance to self-employed individuals. From the first half of the year, a social dialogue body involving stakeholders, related ministries, and experts will be formed to decide on the target groups, methods of enrollment, timing of application, and phased expansion plans.

Discussions on the composition of the dialogue body will be held through the Economic, Social and Labor Council’s Social Safety Net Improvement Committee, a presidential social dialogue organization.

From the second half of the year, related ministries, platform companies, representatives of freelancers, platform workers, small business owners, and experts in employment insurance and taxation will share current status and promote social discussions together.

Deputy Prime Minister Hong stated, "We will carefully prepare measures for applying employment insurance to self-employed individuals by forming a social dialogue body within the first half of the year."

Meanwhile, the government also discussed youth employment measures and women's employment recovery measures on the same day and plans to finalize and announce detailed contents around next week.

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