Tips for Statutory Social Insurance effective from July 1, 2022
l Max contribution ceiling of statutory national pension increased
Effective from July 1, 2022, the monthly max contribution ceiling of the statutory national pension increased from KRW 235,800 to KRW 248,850 each for employer and employee (Ministry of Health and Welfare (MOHW) of Korea announcement, April 1, 2022). This has impact to the employees whose monthly gross salary is over and above the max threshold of Won 5,530,000.
l Contribution rate of statutory employment (unemployment) insurance increased
Effective from July 1, 2022, the employment insurance rate was raised by 0.1% each for employee and employer as summarized below.
|
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 |
For your future reference, the statutory social insurance rates in effect from July 1, 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 248,850 each from July 1, 2022 |
|
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)
|
0.9%
|
1.15% ~1.75% |
2.05% ~2.65% |
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 |