South Korea Without 'Paid Sick Leave'... Introducing Sick Leave Benefits to Allow Time Off When Ill

Promotional material related to the introduction of sickness allowance by the Federation of Korean Trade Unions (Provided by the Federation of Korean Trade Unions)

[Asia Economy Reporter Lee Chun-hee] As COVID-19 spread, the awareness of "rest at home when sick" has increased, but cases of forced attendance at work due to livelihood issues continue. 54% of the public responded that "resting when sick" is the most difficult COVID-19 daily quarantine rule to follow.

In this regard, discussions on introducing "sickness benefits," which guarantee a certain portion of income when one needs to rest or be hospitalized due to illness or injury unrelated to work, are being actively pursued.

The Ministry of Health and Welfare announced that it launched the "Sickness Benefits System Planning Advisory Committee" and held its first meeting on the afternoon of the 15th.

The sickness benefits system is a social security system that guarantees a certain portion of income so that workers can receive timely treatment when they are unable to work due to illness or injury unrelated to their job. Except for Korea and some states in the United States, most of the 36 OECD countries already operate sickness benefits systems, and the need for such a system has recently emerged in Korea amid the spread of COVID-19.

Going forward, the advisory committee will gather diverse opinions on the basic direction of a Korean-style sickness benefits system and operate to activate social discussions. Kang Do-tae, the 2nd Vice Minister of the Ministry of Health and Welfare, and Shin Young-seok, Senior Research Fellow at the Korea Institute for Health and Social Affairs, will serve as co-chairs. Related ministries such as the Ministry of Economy and Finance, Ministry of Employment and Labor, and Financial Services Commission, as well as experts from medical, employment, and welfare sectors, and stakeholders including business, labor, and patient organizations will participate together.

Excerpt from 'Understanding the Sick Leave Allowance System for the Discussion on Introducing a Korean-style Sick Leave Allowance' (Provided by the Ministry of Health and Welfare)

At the committee meeting, a presentation titled "Understanding the Sickness Benefits System for the Discussion on Introducing a Korean-style Sickness Benefits" was given by the Ministry of Health and Welfare's sickness benefits task force (TF) team. Byun Sung-mi, head of the sickness benefits TF team, described sickness benefits as a "social vaccine" and "the last remaining puzzle of the social welfare system," explaining the necessity of its introduction.

According to the data, a 2018 OECD survey showed that the number of sick days taken by workers per year was 12.3 days in Belgium, 9.7 days in Finland, and 4.0 days in the United States, whereas Korea showed a notably low figure of only 2.0 days. Additionally, research from 2020 indicated that low-income and vulnerable workers tend to go to work despite being sick, and health issues cause a 26.6% loss in labor productivity.

Regarding funding, which will be a key issue in the actual introduction process, among 34 OECD countries, 4 countries use taxes, 28 use social insurance, and 2 rely on employer contributions. Among countries funding through social insurance, various types of funding exist, including ▲sickness benefits insurance ▲employment insurance affiliation ▲pension insurance affiliation ▲health insurance (integrated or independent).

Also, the target population and benefit levels vary by country. Austria, Spain, the Netherlands, and Japan limit the target to wage workers only, while the UK, Sweden, and Finland provide sickness benefits to non-wage workers as well. Regarding benefit levels, some countries adopt a fixed amount, while others use a fixed rate. Fixed amounts range from a maximum of 350,000 KRW (Iceland) to 2.9 million KRW (Denmark) per month, and fixed rates are generally set at 60-80% of previous income, often higher than unemployment benefits but lower than industrial accident insurance leave benefits.

The government plans to start a pilot project next year and then implement the system after social consensus. Since no specific funding system has been established yet for the full-scale project beyond the pilot, social consensus on methods such as tax burden or health insurance contributions is necessary.

Kang Do-tae, Vice Minister of Health and Welfare, said, "Sickness benefits are an important system that contributes to achieving universal health coverage by preventing infectious diseases, breaking the vicious cycle of illness and poverty, and enabling workers to continue working healthily." He added, "We will create a sickness benefits system suitable for Korea's conditions and circumstances through active social discussions."

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