Hello, today in Korea, workers and business owners must subscribe to four major insurances: national pension, health insurance, employment insurance, and industrial accident insurance. Each of the four typical insurance calculation methods has slightly different standards for each insurance, and the monthly salary of workers can be the main calculation standard.사대보험 계산기
National pension among the four major insurances
The national pension is a public pension system directly operated by the government, which refers to a pension system paid to individuals or their bereaved families when they are old or stopped due to disabilities such as accidents and diseases.
National Pension Service Salary Standards
Basically, in the case of old-age pensions, those who have been fully old for 20 years or longer will be 60 years old
In the case of old-age employees who work as office workers, this is the case for those who have joined for more than 10 years and have been engaged in work with income between 60 and 65 years of age.
Please refer to the table above for other information such as disability pensions and survivor pensions.
The method of calculating the national pension is as follows.
It is calculated by applying a certain percentage (9% as of 2023) to the monthly salary of workers.
And workers and business owners each bear half the burden.
Example: If the monthly salary is 5 million won, the national pension will be 5 million won * 9% = 450,000 won, and workers and business owners will pay 225,000 won each.
How to calculate health insurance
Health insurance is the best insurance in Korea, and it is a system that allows people to receive necessary medical services by paying insurance premiums on a regular basis and providing insurance benefits if necessary to prevent customers’ medical expenses from being too burdensome to households.
Health insurance calculation methods are as follows.
When you apply the health insurance rate (7.09 percent as of 2024) to your monthly salary, you will be charged an additional long-term care premium (12.95%), and the health insurance premium will be paid by workers and business owners in half, just like the National Pension Service
For example, if the monthly salary is 5 million won, the health insurance premium is 5 million won per month * 7.09% = 35.45 million won, and the long-term care insurance premium is
35.45 million won * 12.95% = 4.59 million won, which will be 40.04 million won, plus two more.
Workers and users will pay KRW 200.02 million each.
Employment insurance, unemployment benefits explained
Employment insurance is one of the social insurance policies that promote job placement and re-employment of job seekers along with the unemployment benefit program that pays them for a certain period of time to stabilize their lives when workers are unemployed. If you look at it as unemployment benefits, it will be easy to understand.
The method of calculating employment insurance is as follows
The employment insurance rate will vary depending on the burden ratio of workers and business owners, and the rate will vary by about 0.9% for workers and the size of the company’s employees. For companies with fewer than 150 employees, the 0.25% rate will be applied.
For example, if a worker’s monthly salary is 5 million won, and the employment insurance rate is 0.9% for workers and 0.25% for business owners
5 million won * 0.9% = 4.5 million won, and the employer will pay 1.25 million won.
Description of industrial accident insurance
Lastly, industrial accident insurance is a compulsory insurance that the Cabinet is responsible for to guarantee the lives of injured workers and their families, and it is a compulsory insurance that the state is responsible for to guarantee the livelihood of injured workers and their families.
Except for other explanations on industrial accident insurance, I will guide you on how to calculate industrial accident insurance
Industrial accident insurance premiums are fully borne by the employer. Rates vary by industry and by industry due to different risks and are generally calculated as a ratio to the total monthly salary.
The highest premium rate is 5.76-18.56 percent for mining, and 0.56 percent for the relatively safe financial and insurance industries.
According to the mining maximum rate, if the monthly salary is 5 million won, the industrial accident insurance premium will be 5 million won * 18.56% = 928,000 won.
As above, we have learned how to calculate the four major insurances, and rates may vary from year to year, so please refer to the Health Insurance Corporation, the Pension Service, and the Ministry of Employment and Labor. Thank you.