Annual settlement of Social Insurance Premiums required in April 2019 (excluding National Pension)

Annual settlement of Social Insurance Premiums required in April 2019 (excluding National Pension)

Employers are required to perform annual settlement of social insurance premiums in March of the following year after each calendar year end for the national health insurance, employment insurance and industrial accident compensation insurance, and reflect any overpayment (underpayment) during the year resulting from the annual settlement in April payroll accordingly. There is no annual settlement required for national pension.

For national health insurance, if the additional insurance resulting from 2018 year-end settlement is greater than the April 2019 insurance amount, employees may choose to pay by installment over 2 - 10 months starting from April 2019.

For your future reference, the statutory social insurance rates in effect for year 2019 can be summarized as below:

Social Insurances:

Employee portion

Employer portion

Total

Remark

National Pension (NP)

4.5%

9.0%

Won 210,600 of monthly contribution ceiling each

National Health Insurance (NHI)

a. National Health Insurance (NHI)

b. Long-term Care Insurance

for the Elderly (NHI-LTCI)

3.23%

8.51%

3.23%

8.51%

6.46%

17.02%

Won 3,182,760 of monthly contribution ceiling each

Assessed at 8.51% of NHI premium above

Employment Insurance (EI)

0.65%

0.9%

~1.5%

1.55%

~2.15%

Vary depending on the number of employees

Industrial Accident Compensation Insurance (IACI)

NIL

0.76%

~28.31%

0.76%

~28.31%

Vary depending on type of business