1. Reason for Revision
The current system for calculating and imposing employment and industrial accident insurance premiums is based on the total wages of the previous year, creating a time lag between actual wages and those reported.
Additionally, employers are burdened with the dual obligation of reporting both income and total wages to the tax authorities.
Therefore, it is necessary to restructure the premium calculation and assessment system to focus on monthly wages for the current year and allow the use of national tax income information for premium calculation to reduce the administrative burden on employers.
2.Key Contents
a. Change in Reporting System for Regular Workers' Wages (Article 16-10, Article 48-2, Paragraph 4)
1) The reporting of "wages," which is the basis for calculating employment and industrial accident insurance premiums for regular workers, will change from an annual report of the previous year’s total wages to a monthly report of current year’s wages. However, if the employer reports monthly income to the National Tax Service, this will be considered as reporting monthly wages to the Korea Workers' Compensation & Welfare Service.
2)The provision related to the reporting of total wages for artists, which maintains the current reporting system, will be specified in the special provision for artists' employment insurance (Article 48-2).
b. Change in Monthly Premium Calculation Standard for Regular Workers (Article 16-3, Article 16-5)
- The monthly insurance premiums for regular workers will be calculated based on "current year's monthly wages" rather than "previous year's average monthly wages."
c. Change in Monthly Premium Calculation Method Due to Changes in Employment Status (Article 16-4, Article 48-2, Paragraph 9)
- With the change to monthly wage reporting, the method for calculating monthly insurance premiums for regular workers will be revised in cases of mid-month changes in employment status.
d. Other Provision Revisions (Article 13, etc.)
- Changes will be made to referenced provisions, applicable phrases, and terminology in line with the new regular worker wage reporting system.
