The South Korean government is set to overhaul the eligibility criteria for employment insurance, moving away from work hours and focusing instead on workers' income levels.
The reform aims to expand coverage to previously excluded groups such as freelancers and multi-job holders, who often fall through the cracks due to non-traditional work patterns.
It marks the first major change in employment insurance rules since the system was introduced in 1995.
On 7 July, the Ministry of Employment and Labor announced plans to legislate amendments to the Employment Insurance Act and the Act on the Collection of Employment and Industrial Accident Insurance Premiums by 18 August.
Under the proposed changes, any worker earning above a certain income threshold—regardless of how many hours they work—would be eligible for employment insurance.
Currently, only those working more than 60 hours per month (or 15 hours per week) qualify for enrollment.
Freelancers and platform workers have long struggled to meet these hour-based requirements or prove consistent working hours. The ministry noted that enrollment is also hindered when employers fail to properly report employees, causing some workers to miss out on benefits.
To address this, the government will utilise national tax data to identify workers who should be enrolled. A real-time income tracking system being developed by the National Tax Service will help detect and register eligible workers automatically.
Additionally, workers with multiple part-time jobs will be allowed to combine their income across all workplaces to meet the threshold for insurance eligibility. The exact income benchmark will be finalised after consultations with labour groups, employers, and policy experts.
The system for calculating insurance premiums will also be updated. Currently, premiums are based on an average of the previous year’s wages, as reported annually by employers. Under the new system, premiums will instead be calculated based on actual wages, offering a more accurate and fair contribution model.
These reforms are designed to modernise Korea’s employment insurance framework and extend its safety net to a broader range of workers in a changing labour market.
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