Premiums and Benefits    

Benefit Premiums
The benefits fall into two general categories and are calculated using different rates.  The fist category is Unemployment Benefits are they are calculated at a rate of 0.9% of the employee’s total annual wage of which both the employer and employee must pay 0.45% each.  The second category is described as Employment Security and Vocational Development and it is paid by the employer only.  The amount paid by the employer ranges from 0.25% (for a company with less than 150 employees) to 0.85% (for companies with more than 1,000 employees) and the percentage is applied to the year’s total wage of all employees.  The amount is estimated, paid to the Bank of Korea (or an authorized agent) and then adjusted at year’s end, so if the original amount is over paid then the employer will receive a refund with their next year’s amount also being adjusted.

Scope of the Employment Insurance Program
The Employment insurance projects are divided into unemployment benefits, employment security and vocation training projects.  The program is very comprehensive and benefits employers and employees alike.  Most employers fail to utilize the programs available to them and fail to benefit from subsidized labor and training programs offered by the Employment Insurance Program.

Unemployment Benefits
Unemployment benefits include job-seeking benefits and early re-employment benefits.  The intent of the program is to assist the workers in finding a job and to provide a minimal living allowance during the process.  The amount paid is 50% of the standard daily wage, which is calculated using the average wage.  The amount paid for all employees is the same; the duration of the insurance program is dependent upon the age of the worker and the length of the employment with the former employer.  The minimum benefit for all workers is 90 days of payments, while the maximum benefit is 180 days for people under the age of 30, 210 days for people from the age of 31 to 50, and 240 people for people who are over 50 or who are disabled.  If you manage to find a job quickly, you receive 50% of the remaining benefit as a bonus for being re-employed quickly.  For example if you are entitled to 6 months of benefits and you find a job in the second month you would have 4 months of benefits left, at which time you would receive 50% of that amount, or two months as a cash payment because you were re-employed so quickly.

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