l Statutory employment insurance premium
rate to be raised by 0.3% effective from October 1, 2019
Premium rate for statutory unemployment insurance will be raised
by 0.3% from 1.3% to 1.6% effective from October 1, 2019.
October 1, 2019 and thereafter
0.8% ~ 1.40%
As a result of the rapid increase in payout of unemployment
benefits to the unemployed in the wake of the business recession, the
unemployment benefit reserves have hovered below the level prescribed in
Article 84 of the Employment Insurance Act (the reserves of Won 5.5 trillion may
be exhausted in the next five years by 2024 without insurance premium rate
increase). This means that even if employees lose their jobs, there will be no
fund available to pay for their employment benefits. This made it inevitable
for the Korean government to raise employment insurance premiums.