If Monthly Salary Exceeds 100 Million Won, Health Insurance Premium is 3.65 Million Won... Must Pay at Least 9,750 Won Regardless of Salary

Office workers are heading to work wearing thick coats at the Sejongno intersection in Jongno-gu, Seoul. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Lee Chun-hee] Ultra-high-income employees earning more than 100 million won per month will see their health insurance premiums increase by about 130,000 won per month this year, paying a total of 7.3 million won. Even employees with the lowest income will have to pay nearly 10,000 won in health insurance premiums monthly.

According to the Ministry of Health and Welfare on the 10th, the "monthly upper and lower limits of health insurance premiums" applicable for one year have been set. The upper limit of the monthly salary-based insurance premium, calculated by multiplying the insurance rate by the employee's monthly salary (called "wage monthly amount"), has been raised by 259,200 won from last year's 7,047,900 won to 7,307,100 won. Considering the insurance rate of 6.99%, employees earning more than 104.54 million won per month must pay this upper limit.

However, since workplace subscribers split the insurance premium equally between the employer and employee, the actual amount paid by the employee is half of this, 3,653,550 won. Adding up for the entire year, the insurance premium amounts to 43,842,600 won.

The lower limit of the wage monthly insurance premium also increased from 19,140 won last year to 19,500 won. This is the minimum monthly premium that must be paid regardless of how low the salary is. Considering the equal split with the company, employees pay about 9,750 won monthly, close to 10,000 won.

Citizens are heading to work wearing masks at Sindorim Station in Guro-gu, Seoul. Photo by Jinhyung Kang aymsdream@

The upper limit of the income monthly insurance premium and regional subscriber premium, usually set at about half the wage monthly insurance premium upper limit, is 3,653,550 won. The income monthly insurance premium is separately levied when the total "non-wage income" such as interest income, stock dividends, and real estate rental income exceeds 34 million won annually. This is why it is also called the "insurance premium outside of salary."

If an employee earns enough separate asset income while working to reach the income monthly insurance premium upper limit, the actual insurance premium paid monthly can reach 7,307,100 won even as a workplace subscriber. If an individual receives more than 100 million won per month from multiple workplaces, they must pay the wage monthly insurance premium upper limit for each workplace, which can increase the total insurance premium paid accordingly.

Unlike taxes, health insurance is a social insurance, so no matter how high the income or assets are, the premium does not increase indefinitely but is capped at a set upper limit. The government adjusts the upper limit annually based on the regulations set in the National Health Insurance Act, considering wage increases and other factors, by referencing 30 times the average wage monthly insurance premium of workplace subscribers from two years prior (15 times for income monthly and regional subscriber premiums). The lower limit is set within a range of 8.0% or more but less than 8.5% of the average wage monthly insurance premium from two years prior (6.0% or more but less than 6.5% for regional subscribers).

As of June last year, the number of ultra-high-income earners paying the wage monthly health insurance premium upper limit was 3,021. This accounts for only 0.016% of the total 18,148,573 workplace subscribers. The number of employees paying the income monthly insurance premium due to non-salary income exceeding 34 million won annually was 235,281, or 1.29% of workplace subscribers. Those paying the income monthly insurance premium upper limit numbered 3,640, representing 0.02% of all workplace subscribers.

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