Special Employment Insurance Enrollment for Workers Earning Over 800,000 Won Monthly... Employers and Employees Share Insurance Premiums Equally

Priority Application for 12 Industries Including Insurance Planners in July
Quick Service and Substitute Driving from January Next Year
Golf Caddies Excluded from Industrial Accident Coverage
After-School Instructors Added as Non-Covered
Insurance Rate 1.4%... Daily Job-Seeker Benefits 66,000 KRW, etc.

Minister Lee Jae-gap of the Ministry of Employment and Labor is holding a briefing on the promotion of nationwide employment insurance at the Government Seoul Office in Jongno-gu, Seoul, on the 23rd. Photo by Kang Jin-hyung aymsdream@

[Sejong=Asia Economy Reporter Moon Chaeseok] Employment insurance eligibility requirements for special-type workers (STWs) such as insurance planners and home tutors have been announced. Those earning more than 800,000 KRW per month can enroll, and insurance premiums will be shared equally between the employer and the worker.

The Ministry of Employment and Labor announced a partial amendment to the Enforcement Decree of the Employment Insurance Act and the Employment and Industrial Accident Insurance Premium Collection Act on the 19th. This regulation sets the necessary conditions for the special-type workers' employment insurance starting July 1, as part of the "Universal Employment Insurance" policy aimed at providing employment insurance to all workers by 2025.

Starting in July, 12 occupations including insurance planners, home tutors, educational material visiting instructors, delivery drivers, loan solicitors, credit card membership recruiters, door-to-door salespersons, rental product visiting inspectors, home appliance delivery drivers, after-school instructors, construction machinery workers, and freight truck owners will be covered by employment insurance. In January next year, two additional occupations?quick service couriers and designated drivers?will be added.

Those earning less than 800,000 KRW per month are excluded from employment insurance coverage. A Ministry of Employment official explained, "Among regular workers who are not STWs, those working less than 15 hours per week are not covered by employment insurance, and their average monthly wage is 800,000 KRW. The same standard has been applied." However, starting January next year, if a person has multiple labor provision contracts, the combined monthly wage must be 800,000 KRW or more to qualify for employment insurance.

The insurance premium rate for STWs is set at 1.4%, lower than the 1.6% rate for regular workers. Both the labor provider and the employer will each pay 0.7%. The income used to calculate premiums is the amount after excluding non-taxable income and expenses from business income and other income under the Income Tax Act. The premium cap is set at ten times the average subscriber premium.

If income decreases due to COVID-19 leading to job loss, job-seeking benefits of up to 66,000 KRW per day can be received. Eligibility requires that the wage for the three months before job loss decreased by 30% or more compared to the same period a year earlier, or that there are five or more months in the previous 12 months where the monthly average wage decreased by 30% or more compared to the previous year. Additionally, those who meet requirements such as having been insured for at least three months before childbirth can receive maternity benefits. They can receive 100% of their average monthly wage for 90 days during the period before and after childbirth.

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