For the self-employed in Korea, the employment insurance premium is not set by takings or income. When you join you pick one of seven base amounts in a Ministry of Employment and Labor notice, and the premium is that amount times the rate. Article 49-2(6) of the Premium Collection Act (the Act on the Collection of Employment and Industrial Accident Insurance Premiums) says so, and Decree Art. 56-19 sets the rates at 25/10,000 for job security and skills development and 20/1,000 for unemployment benefit — 2.25% in all. At the lowest grade (1,820,000 won a month) that is 40,950 won a month; at the highest (3,380,000 won) 76,050 won. To change grade for next year you must apply by 20 December (Art. 49-2(5)). Pick a grade below to see the month's premium and the benefit that grade buys.
1. Premium = chosen base × 2.25% — 0.25% job security and skills + 2% unemployment benefit (Decree Art. 56-19). There is no employer to pay half, so it is all yours.
2. Seven grades, 1,820,000 to 3,380,000 won a month — 260,000 won apart (Notice 2022-497).
3. Change grade by 20 December; pay by the 10th of the next month — six straight months unpaid ends the cover (Art. 49-2(5), (9), (10)).
Calculator
Updates as you type. The premium is the base you chose × the rate (Act Art. 49-2(6)) — takings and income do not enter it. Rates: job security and skills 25/10,000, unemployment benefit 20/1,000 (Decree Art. 56-19). If cover starts or ends mid-month the premium is pro-rated by days (same paragraph) — rounded down to the won (our method). The daily benefit is our sum, assuming the same base throughout: × 12 ÷ 365 × 60%; claiming it needs one year of insured units and an accepted reason for closing.
The provisions
| Provision | What it says | Note (ours) |
|---|---|---|
| Act Art. 49-2(1) | A self-employed person who employs no one or fewer than 50 workers and meets the Decree’s conditions may, with the Service’s approval, join employment insurance as if an employee | Voluntary — you apply |
| Act Art. 49-2(3), (4) | The base amounts are set and notified by the Minister; the person chooses one with the level of benefit they want in mind | You are choosing a benefit level |
| Act Art. 49-2(5) | To change the chosen amount for the next insurance year, choose again and apply by 20 December of the year before | No changes mid-year |
| Act Art. 49-2(6) | Notwithstanding Art. 13(2) and (4), the premium is the chosen amount × the rate; if cover starts or ends mid-month it is pro-rated by days | Replaces the employee half-and-half rule |
| Act Art. 49-2(7) | The rate is set by Decree within 30/1,000, split into the two parts | Ceiling 3% |
| Act Art. 49-2(8)–(10) | Charged monthly by the Service and collected by the National Health Insurance Service; due by the 10th of the next month; if unpaid for six months in a row the cover ends the day after the last insured period paid for (unless an unavoidable reason such as a natural disaster is proved) | Missed months also limit the benefit |
| Decree Art. 56-18 | Business registration (or a unique number, or farm and fishery registration) and actually trading; no self-employed job-seeking benefit in the 2 years before applying; not in the businesses listed in Employment Insurance Decree Art. 2(1) or property letting | Landlords cannot join |
| Decree Art. 56-19 | Job security and skills 25/10,000; unemployment benefit 20/1,000; premiums are adjusted when the rates change | Higher than the 18/1,000 for employees |
| Notice 2022-497, items 1 and 2 | Grades 1 to 7 for unemployment benefit plus job security and skills: 1,820,000 · 2,080,000 · 2,340,000 · 2,600,000 · 2,860,000 · 3,120,000 · 3,380,000 won; for those covered for job security and skills only under the addendum to Act No. 10894, 2,600,000 won | In force since 1 Jan 2023, still current |
The grade table in the notice is printed as an image, so we read the figures off the image (checked again on 5 November 2026). Item 2 says the “job security and skills only” group comes from the addendum to Act No. 10894, which we did not read this time; the calculator includes it because the notice gives the amount. Grades 1 to 7 are 260,000 won apart (our sum — 2,080,000 − 1,820,000).
Grade by grade — our sums
| Example (our sums, a full 30-day month) | Monthly / 12 months | Benefit at that grade (our sums) |
|---|---|---|
| Grade 1 — 1,820,000 won | 40,950 / 491,400 won | 35,901 won a day; 4,308,120 won for 120 days |
| Grade 4 — 2,600,000 won | 58,500 / 702,000 won | 51,287 won a day; 6,154,440 won for 120 days |
| Grade 7 — 3,380,000 won | 76,050 / 912,600 won | 66,673 won a day; 8,000,760 won for 120 days |
| Grade 1, 10 days of a 30-day month | 13,650 won | 40,950 × 10 ÷ 30 |
| Job security and skills only | 6,500 / 78,000 won | No unemployment cover, so none |
Premium and benefit both move with the chosen base, so 120 days of benefit come to about 8.8 times a year of premiums at every grade (our sums — 4,308,120 ÷ 491,400). Moving from grade 1 to grade 7 adds 35,100 won a month to the premium and 30,772 won a day to the benefit. To claim, you need insured units totalling at least one year in the 24 months before closing and an accepted reason for closing; those rules and the limit on missed premiums are in unemployment benefit for the self-employed.
How it differs from an employee’s premium
An employee pays only half (0.9%) of the 18/1,000 unemployment-benefit rate and the employer pays the rest (employment insurance premium calculator). Art. 49-2(6) sets that rule aside for the self-employed, so you pay the whole rate, and the unemployment part is a little higher at 20/1,000. An employee’s job-seeking benefit also has a floor of 66,048 won a day (2026), but the floor provision (Employment Insurance Act Art. 46) is not applied to the self-employed, so grade 1 gives 35,901 won a day — we set out that difference from the text in the same guide.
The base daily amount is the notified amounts for the three years before the last closure (or the whole insured period if shorter) added up and divided by the number of days (Employment Insurance Act Art. 69-4), so raising your grade just before closing only counts for that year. The calculator’s daily figure assumes the same base throughout.
Checklist
- ☐ Business registered and actually trading, and not property letting
- ☐ No self-employed job-seeking benefit in the last 2 years
- ☐ Which of grades 1 to 7 — premium and benefit move together
- ☐ To change next year’s grade, apply by 20 December this year
- ☐ Pay by the 10th each month — six straight months unpaid ends cover, and missed months limit the benefit
Questions that remain
How much does the small-business premium subsidy take off?
The Act, Decree and notice we read say nothing about subsidies. We did not read the subsidy scheme, so the calculator shows the amount before any support.
Do you pay the unemployment premium if you start a business after 65?
Act Art. 13(3) says no unemployment-benefit premium is collected from someone who starts self-employment after 65. We did not read how the Employment Insurance Act Art. 10(3) it points to fits with the self-employed rules, so the calculator leaves it out. Ask the Korea Workers’ Compensation and Welfare Service.
Is the premium tax-deductible?
The provisions we read do not deal with tax. The deduction for employees’ social insurance is in social insurance premium deduction, but we did not read how a self-employed person’s own premium is treated.
Sources
- Korea Law Information Center — Premium Collection Act Art. 49-2 — text (current page, in force 8 Oct 2026, Act No. 21532; checked 5 November 2026). Who can join, choosing a notified amount, changes by 20 December, premium = amount × rate and pro-rating, rate ceiling 30/1,000, monthly charge due on the 10th, cover ending after six unpaid months.
- Korea Law Information Center — Enforcement Decree Arts. 56-18 and 56-19 — text (current page, in force 23 Dec 2025, Presidential Decree No. 35935; checked 5 November 2026). Conditions for joining; rates of 25/10,000 and 20/1,000.
- Korea Law Information Center — Ministry of Employment and Labor Notice No. 2022-497, base amounts for the self-employed premium — text (in force 1 Jan 2023; checked 5 November 2026, still shown as current). Grades 1 to 7; 2,600,000 won for job security and skills only.
- Not read. The addendum to Act No. 10894, the small-business premium subsidy, tax treatment, rounding, Employment Insurance Act Art. 10(3).
- Added by us. The grade-by-grade sums, the daily benefit conversion (× 12 ÷ 365 × 60%), and the notes column.
Where to check further
- Korea Workers’ Compensation and Welfare Service — approval to join, choosing or changing grade.
- National Health Insurance Service — monthly bills and payment.
- Your local employment centre — whether you qualify for benefit after closing.
Written on 5 November 2026. The provisions are set out as written; the notes and sums are ours.
