9.65 Million Employees Receive Pay Raise... An Average of 200,000 Won Deducted from This Month's Salary for Health Insurance Fee

Refunds to 3.1 Million Subscribers with Reduced Conservative Membership

9.65 million people whose total compensation increased compared to the previous year must pay an additional average of 200,000 KRW per person.
Photo by Asia Economy

[Asia Economy Reporter Na Yeeun] According to the National Health Insurance Service's (NHIS) year-end health insurance premium settlement, 9.65 million people whose total wages increased compared to the previous year will pay an additional average of 200,000 KRW per person.

On the 22nd, NHIS announced that the settlement premiums reflecting last year's wage changes of workplace subscribers and the April premiums will soon be notified. NHIS calculates health insurance premiums for workplace subscribers based on the monthly wage amount, which is the total annual wage divided by the number of months worked.

NHIS finalized the insurance premium settlement amounts reflecting the 2021 wage changes of workplace subscribers and notified workplaces on the 18th.

Accordingly, 9.65 million people whose wages increased will pay an additional 200,000 KRW per person. Meanwhile, 3.1 million people whose wages decreased compared to the previous year will receive an average refund of 88,000 KRW, and 2.84 million people with no changes are not subject to refunds or additional payments.

According to NHIS, the total settlement amount for 15.59 million workplace subscribers in 2021 was 3.3254 trillion KRW, a 54.7% increase from the previous year. The average settlement premium per person was 213,352 KRW, up 50.7% from the previous year.

This year's additional year-end settlement payments will be divided into 10 installments, doubling from the previous 5 installments, considering the economic situation related to COVID-19. Subscribers who wish to change the number of installments can pay in any number of installments up to 10.

However, payers whose 2022 subscriber burden amount is below the minimum threshold (9,750 KRW) are excluded from installment payments.

NHIS stated, "The year-end settlement is the payment of the amount that should have been paid last year based on actual wages. It is not a new premium charge. It reflects wage increases and bonuses that occurred in the previous year to settle premiums, and has been implemented since 2000 to ensure accurate premium charges based on income."

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