What should the employment insurance line on a Korean payslip be? The premium has two parts: unemployment benefit and job security and skills development. Article 13 of the Premium Collection Act (the Act on the Collection of Employment and Industrial Accident Insurance Premiums) has the employee pay their pay × half the unemployment-benefit rate, and the employer pay pay × (the job security and skills rate + half the unemployment-benefit rate). Decree Art. 12 sets unemployment benefit at 18/1,000 and job security and skills at 25–85/10,000 by employer size. So in 2026 employees pay 0.9% of pay and employers 0.9% plus 0.25–0.85%. And no unemployment-benefit premium is collected for people newly hired at 65 or over (Art. 13(3)). Enter monthly pay and employer size to see both shares.
1. Employee: 0.9% of pay — half the 1.8% unemployment-benefit rate (Art. 13(2)).
2. Employer: 0.9% plus 0.25–0.85% for job security and skills — 0.25% under 150 staff, 0.45% priority-support firms, 0.65% for 150–999, 0.85% for 1,000+ and government (Decree Art. 12).
3. No unemployment premium if hired at 65 or over — not if you were already covered before 65 and stayed on (Art. 13(3)).
Calculator
Updates as you type. Rates: unemployment benefit 18/1,000 split equally; job security and skills 25–85/10,000, employer only. Each part is rounded down to the won (our method; actual bills may round differently). “Monthly pay” means pay as defined in Art. 2(3), not gross salary.
The provisions
| Type | What the source says | Worth noting (ours) |
|---|---|---|
| Act Art. 13(1) | Premiums are collected for job security and skills development and unemployment benefit (employment insurance) and for industrial accident insurance | Two parts added together |
| Art. 13(2) | The employee’s premium is their pay × half the unemployment-benefit rate | No employee share of the skills part |
| Art. 13(3) | For those hired at 65 or over under Employment Insurance Act Art. 10(3) (except those insured before 65 who stay on) or starting self-employment, the unemployment-benefit premium isn’t collected | Nor the employer’s half, on our reading |
| Art. 13(4) | The employer’s premium is each employee’s pay × (1) the job security and skills rate plus (2) half the unemployment-benefit rate | — |
| Art. 14(1) | Rates are set by Decree within 30/1,000, split into the two parts | 3% ceiling |
| Decree Art. 12(1) | Job security and skills: under 150 staff 25/10,000; 150+ priority-support firms 45/10,000; 150–999 others 65/10,000; 1,000+ others and direct central/local government business 85/10,000. Unemployment benefit: 18/1,000 | Last amended 26 Dec 2023, as shown |
| Decree Art. 12(2), (4) | Staff numbers add up all the employer’s businesses in Korea; if growth raises the rate, the old rate applies for three insurance years from the next (not for large business groups) | Three years’ grace |
“Pay” under Art. 2(3) is earned income under Income Tax Act Art. 20 minus items set by Decree. We didn’t read which non-taxable items come out, so the calculator’s monthly pay means pay on that basis, not necessarily gross salary.
Four sums — our example
| Case (our example, pay 3 million won a month) | Employee / employer | Worth noting (our arithmetic) |
|---|---|---|
| Under 150 staff | 27,000 / 34,500 won | Employer = 7,500 + 27,000; together 61,500 |
| 1,000+ staff | 27,000 / 52,500 won | Skills part 25,500 |
| 150+ priority-support firm | 27,000 / 40,500 won | Skills part 13,500 |
| Under 150, hired at 65 or over | 0 / 7,500 won | No unemployment premium, skills part only |
The employee’s 27,000 won over 12 months is 324,000 won, and the year-end deduction is in social insurance premium deduction. For every deduction from pay at once, use salary take-home calculator.
What you pay and what it buys
Employees pay only the unemployment-benefit part; the employer’s skills part funds job retention and training schemes (our gloss). Counting insured days for unemployment benefit is in insured unit period calculator. Not paying the unemployment premium after being hired at 65 ties in with benefit coverage — see unemployment benefit after 65.
Checklist
- ☐ Payslip line = pay × 0.9%
- ☐ Employer size (all businesses in Korea added up)
- ☐ Hired at 65 or over, or covered since before 65
- ☐ Claim the premium deduction at year-end
Questions that remain
Will rates rise in 2027?
The Decree Art. 12 text we read (effective 23 December 2025) sets unemployment benefit at 18/1,000. Art. 14 only says rates are set within 30/1,000 after the Employment Insurance Committee reviews them, so any change would come by Decree amendment.
How are fractions of a won handled?
The articles we read don’t say. The calculator rounds each part down, so bills may differ by a few won.
Sources
- Korean law database (law.go.kr) — Premium Collection Act Arts. 2, 13, 14 — source (current text, effective 8 October 2026, Act No. 21532; checked 2 November 2026). Definition of pay, the two premium parts, employee share (half the unemployment rate), no unemployment premium for hires at 65+, employer share, the 30/1,000 ceiling.
- Korean law database — Premium Collection Act Enforcement Decree Art. 12 — source (current text, effective 23 December 2025, Decree No. 35935; checked 2 November 2026). Skills rates 25, 45, 65, 85/10,000; unemployment 18/1,000; staff counting; three-year grace.
- Not read. Items excluded from pay (Decree), the priority-support firm definition, rounding, industrial accident rates.
- What we added. The “worth noting” column and the Korean everyday gloss.
Where to check further
- The social insurance information centre (Korea Workers’ Compensation and Welfare Service, National Health Insurance Service) — your billing.
- Your payroll team — how pay and size are worked out.
Written on 2 November 2026. The content is from the source; the glosses are ours.
