Employment Insurance (SAP-Bibliothek

Employment Insurance

Use

Any business that has five or more employees must by law join the employment insurance scheme. Employees not liable for employment insurance are:

Newly hired employees aged 60 years or older
Employees aged more than 65 years
Employees who work less than 80 hours a month
Seasonal and temporary workers who work less than one month
People who work for the nation, a local autonomous entity or a private school
Sailors
Non-Korean-resident foreign workers

Features

When employees join the company, their acquisition for employment insurance is effective automatically from the joining date.

The deduction of employment insurance premium from an employee’s income is calculated starting from the month in which their eligibility is acquired.

Notification of acquisition by the employer should be made within 14 days of the acquisition date to the corresponding authority. If employees retire (or die), they lose their eligibility for employment insurance.

The insurance premium is collected from the employer and the employee.

By business	Premium rate	Share
Unemployment allowance	0.6% of total amount of wage/salary provided by the employer	50% paid by employer and employee respectively
Stable employment	0.2% of total amount of wage/salary provided by the employer	All paid by the employer
Occupation ability development	0.1–0.5% of total amount of wage/salary provided by the employer	All paid by the employer

The employee is liable only for the insurance premium of the company unemployment insurance payment.

See also:

Social Insurance Infotype (0543)