South Korea Employment Insurance
Employment Insurance (EI) is a social insurance program in South Korea that provides financial assistance to individuals who have lost their jobs or experienced reduced income due to various factors such as unemployment, injury, or illness. The Korea Employment Information Service manages this program.
Eligibility
To be eligible for Employment Insurance, individuals must have worked for a certain period (typically 6 months to 1 year) and contributed to the program.
Employee Insurance Benefits
Employee insurance benefits in South Korea encompass a wide-ranging support system to ensure employees’ well-being and financial security. Key components include:
- National Pension (NP)
- Provides income for retirement, disability, or death. Mandatory contribution system.
- Eligibility: Citizens and registered foreigners aged 18-60.
- National Health Insurance (NHI)
- Covers medical, surgical, and prescription costs. Includes dependents.
- Eligibility: All employees and their dependents.
- Long-Term Care Insurance (NHI-LCI)
- Employment Insurance (EI)
- Offers unemployment compensation and job training.
- Eligibility: Employees covered by the Employment Insurance Act.
- Offers unemployment compensation and job training.
- Workers’ Compensation (WCI)
- Covers work-related injuries, diseases, disability, or death.
- Eligibility: All employees regardless of nationality.
- Covers work-related injuries, diseases, disability, or death.
| Statutory Contributions | Employee Contribution | Employer Contribution | Maximum Salary Cap (KRW) | Minimum Salary Cap (KRW) |
| National Pension (NP) | 4.5% | 4.5% | 6.17 Mil | 390,000 |
| National Health Insurance (NHI) | 3.545% | 3.545% | 127,056,982 | 279,266 |
| Long-Term Care Insurance (NHI-LCI) | 0.4591% | 0.4591% | ||
| Employment Insurance (EI) | 0.9% | 1.15% to 1.75% | ||
| Worker’s Compensation Insurance (WCI) | 0.7% to 18.6% |
*Market Practice: Part-time employees who have worked more than 60 hours per month is included.
Sample: Monthly Salary KRW 7 Mil (Mil = 1,000,000 KRW)
| Statutory Contributions | Employee Contribution | Employer Contribution | Maximum Salary Cap (KRW) | Minimum Salary Cap (KRW) |
| National Pension (NP) | 6.7 Mil x 4.5% | 6.7 Mil x 4.5% | 6.17 Mil | 390,000 |
| National Health Insurance (NHI) | 7 Mil x 3.545% | 7 Mil x 3.545% | 127,056,982 | 279,266 |
| Long-Term Care Insurance (NHI-LCI) | 7 Mil x 0.4591% | 7 Mil x 0.4591% | ||
| Employment Insurance (EI) | 7 Mil x 0.9% | 7 Mil x 1.15% to 1.75% | ||
| Worker’s Compensation Insurance (WCI) | 7 Mil x 0.7% to 18.6% |
Register / Deregister of Four Major Compulsory Insurances
As of 15th of each month, the insurance premium of the person entering or leaving the company for the month is included in or excluded from the bill.
- If register/de-register report is filed before 15th -> reflected in the current month’s bill.
- If register/de-register report is filed after 15th -> reflected in the next month’s bill.
| 4 Insurances | Report Deadline | Type | Data Required | |
| National Health Insurance (NHI) | Within 14 days | New Hire | Name / Resident registration number / Nationality / Join date / Monthly salary / Working hours per week / Job duty | |
| National Pension (NP) | By the 15th of the month following the month of employment | |||
| Employment Insurance (EI) | By the 15th of the month following the month of employment | Resignee | Name / Resident registration number / Last working date / Total remuneration for the year (number of working months) / Total remuneration for the previous year (number of working months) / Reason for leaving company | |
| Worker’s Compensation Insurance (WCI) | By the 15th of the month following the month of employment |
Employment Insurance for Foreigners
Foreign workers in South Korea are eligible for employment insurance benefits, provided they hold appropriate visas and employment contracts. This ensures they can access unemployment benefits, job assistance, and vocational training programs similar to South Korean nationals.
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Understanding and utilising employee benefits in South Korea, such as employment insurance, is crucial for securing employees’ well-being and financial stability. These comprehensive benefits ensure a supportive and equitable work environment for all.
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Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of South Korea employment laws and regulations, please visit the official governmental websites.
Updated on: 16th January 2025
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