Statutory Social Insurance Tips in 2022
l Rate change for the statutory national health insurance and long-term care for the elderly in 2022
Effective from January 1, 2022, the insurance rate of the statutory national health insurance has been increased from 6.86% to 6.99% of monthly salary income (excluding non-taxable income). Employer and employee portion each has risen from 3.43% to 3.495% each. The insurance rate of the long-term care for the elderly (which is the surcharge of the national health insurance) has also been increased from 11.52% to 12.27% of the national health insurance premiums.
As an example, if an employee’s monthly average taxable salary is KRW 5,600,000, the employee portion of the national health insurance and the long-term care for the elderly insurance premiums are calculated as follows:
(Korean Won)
|
|
2021 |
2022 |
|
National health insurance |
5,600,000 * 3.43% = 192,080 |
5,600,000 * 3.495% = 195,720 |
|
Long-term care insurance |
192,080* 11.52% = 22,128 |
195,720* 12.27% = 24,015 |
The total national health insurance rate including the long-term care for the elderly rate will be 3.9238% for employer and employee, respectively.
l Rate change for the statutory employment (unemployment) insurance in 2022
Considering the financial status of the employment (unemployment) insurance fund and expectations for an economic recovery after COVID-19, the government will raise the employment insurance rate by 0.2% from 1.6% to 1.8% (employee and employer each bear 0.1% increase portion) from July 1, 2022.
|
Employment Insurance: |
Before |
From |
|
|
Employee portion |
0.8% |
0.9% |
|
|
Employer portion |
1.05% ~1.65% |
1.15 ~ 1.75% |
Vary depending on the number of employees |
l Annual settlement of the statutory social insurance premiums required in April 2022 (excluding national pension)
Employers are required to perform annual settlement of statutory 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. On the other hand, there is no annual settlement required for national pension.
For national health insurance, if the additional insurance resulting from 2021 year-end settlement is greater than the April 2022 insurance amount, employees may choose to pay by installment over 2 - 10 months starting from April 2022.
For your future reference, the statutory social insurance rates in effect for year 2022 can be summarized as below:
|
Social Insurances: |
Employee portion |
Employer portion |
Total |
Remark |
|
National Pension (NP) |
4.5%
|
4.5%
|
9.0% |
Monthly contribution ceiling of Won 235,800 each |
|
National Health Insurance (NHI) a. Health Insurance (HI)
b. Long-term Care Insurance for the Elderly (HI-LTCI) |
3.495%
12.27% |
3.495%
12.27% |
6.99%
12.27%(*) |
Monthly contribution ceiling of Won 3,653,550 each (*) Assessed at 12.27% of HI premium above |
|
Employment Insurance (EI)
|
0.8%
|
1.05% ~1.65% |
1.85% ~2.45% |
Vary depending on the number of employees |
|
Industrial Accident Compensation Insurance (IACI) |
NIL
|
0.60% ~18.6% |
0.60% ~18.6% |
Vary depending on type of business |