Unemployment Benefits Cut by Up to 50% After 3 Claims in 5 Years... Employment Insurance for Artists Applies from Age 15

Establishment of Repeated Benefit Restriction Device... Legislative Notice for Related Law Amendment Bill

[Sejong=Asia Economy Reporter Moon Chaeseok] The government has initiated legislative procedures to reduce unemployment benefits for those who repeatedly receive benefits above a certain level in order to prevent moral hazard.

The Ministry of Employment and Labor announced on the 23rd that it has given prior notice of amendments to the Employment Insurance Act and related laws reflecting this content. The bill will be finalized after collecting opinions until September 1, when the prior notice period ends.

Since April, the Ministry of Employment and Labor has prepared the amendment through discussions by a task force (TF) composed of labor and management representatives and experts to improve the employment insurance system. The amendment includes provisions to limit repeated receipt of unemployment benefits.

The amendment stipulates that for those who have received unemployment benefits three or more times within five years, the benefit amount will be reduced by up to 50% starting from the third receipt. The specific reduction method will be determined by a presidential decree.

The waiting period from qualification recognition to benefit receipt will also be extended up to four weeks. However, exceptions will be made for those who show active efforts to re-employ, such as re-employment before half of the benefit period has passed and working for more than 12 months, or in cases where the wage level is significantly low, or for daily workers who frequently change jobs.

The amendment allows for an increase in the employer’s unemployment insurance premium burden if the proportion of recipients with less than a certain length of continuous service among unemployment benefit recipients over three years is high, and if the amount of unemployment benefits paid over three years exceeds the unemployment insurance premiums imposed. Related standards will be delegated to a presidential decree.

In addition, the amendment includes improvements to the employment insurance system, such as setting the minimum age for employment insurance coverage for artists and others at 15 years old and allowing voluntary enrollment if desired.

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