'If Sick, Allowed to Rest' Sick Leave Benefits Pilot Project Implemented with 3 Models

Pilot Project Phase 1 in 6 Regions, Implemented for 1 Year from July
"Complete National Model After 3 Phases of Pilot Projects Over 3 Years"

[Asia Economy Reporter Kim Young-won] A pilot project for sickness benefits, which pays 60% of the minimum wage to allow workers to take sick leave, will be implemented for one year starting from the 4th of next month. The six regions where the project will be conducted will each apply one of three models, with two regions per model.

On the 15th, the Central Disaster and Safety Countermeasures Headquarters announced that they received a report from the Ministry of Health and Welfare on the "Implementation Plan for the Pilot Project of Sickness Benefits to Allow Sick Leave" and discussed it.

Lee Sang-min, the 2nd Deputy Director of the Central Disaster and Safety Countermeasures Headquarters (Minister of the Ministry of the Interior and Safety), stated in his opening remarks at the Central Disaster Headquarters meeting, "The government plans to implement the pilot project for sickness benefits, which allows workers to take sick leave for infection prevention and timely treatment, starting early next month," adding, "In six pilot regions including Jongno in Seoul, we plan to pay 60% of the minimum wage to eligible recipients during periods when they are unable to work."

The pilot project regions are six locations: Jongno in Seoul, Bucheon in Gyeonggi, Cheonan in Chungnam, Suncheon in Jeonnam, Pohang in Gyeongbuk, and Changwon in Gyeongnam. Eligible recipients are employed persons residing in the pilot project regions and workers at partner workplaces designated by local governments. They will receive 43,960 KRW per day during periods when they cannot work due to illness or injury unrelated to their job.

The Ministry of Health and Welfare plans to divide the six regions into three groups and apply different pilot models of sickness benefits to each group, then compare and analyze the scale of eligible recipients, required budget, and policy effects by model.

Model 1, applied in Bucheon and Pohang, allows support without restrictions based on illness or hospitalization status. It provides wage support during periods when work is impossible, with a waiting period of 7 days and a maximum coverage period of 90 days.

Model 2, applied in Jongno and Cheonan, has a waiting period of 14 days and a maximum coverage period of 120 days, with other conditions the same as Model 1.

Model 3, applied in Suncheon and Changwon, applies only in cases of hospitalization. Benefits are paid proportionally to the number of inpatient and outpatient treatment days, with a waiting period of 3 days and a maximum coverage period of 90 days.

Son Young-rae, head of the Social Strategy Division at the Central Accident Response Headquarters, explained the waiting period for sickness benefits: "If sickness benefits were paid immediately upon temporary or complete withdrawal from the labor market, it could promote moral hazard. Therefore, a certain waiting period is set, and sickness benefits are paid only after this waiting period, a system that is operated worldwide."

Specific eligibility requirements and application methods for sickness benefits will be announced separately within this month. Son said, "The related budget is sufficient so that anyone who qualifies can receive support," adding, "Since the pilot project is limited to six regions, anyone who meets the eligibility criteria in these areas will receive support."

Sickness benefits are a system that supports income when workers are ill due to diseases or injuries unrelated to their work. Serious discussions on introducing sickness benefits began in July 2020 when a social agreement among labor, management, and government was signed to overcome the COVID-19 crisis.

The sickness benefits pilot project is planned to proceed in three stages over three years, with this pilot project being the first stage. The Ministry of Health and Welfare plans to design the second stage pilot project based on evaluations and analyses of the advantages, disadvantages, and effects of the three models in the first stage, and aims to complete a nationwide sickness benefits system model through the three-year pilot project.

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