Understanding 4 Major Insurance Deductions for Temporary Workers
In South Korea, the landscape of employment benefits can be quite complex, especially for temporary workers. While full-time employees typically understand the deductions from their pay, temporary workers often find themselves confused when their paycheck is unexpectedly reduced. This article aims to clarify the criteria for the deduction of the four major insurances for temporary workers.
Not All Insurance Applies Equally
Temporary workers are eligible for the four major insurances, but each has different application criteria. Employment insurance is deducted even if only one day is worked. In contrast, national pension, health insurance, and long-term care insurance require meeting specific conditions before deductions begin. This results in a staggered deduction process for temporary workers.
Employment Insurance: Immediate Deduction
Employment insurance applies from the first day of work for temporary workers. For instance, if you work one day and receive a salary, employment insurance is deducted from that day’s wages. Employers must report temporary workers’ employment insurance to the Ministry of Employment and Labor, enabling workers to qualify for unemployment benefits later.
Criteria for Employment Insurance
Employment insurance is applicable on a daily basis, and workers are considered insured under the Employment Insurance Act. However, if a worker’s monthly working hours are less than 60 or they work fewer than 15 days, they are classified as “temporary workers.” If they work 15 days or more, or more than 15 hours per week for at least a month, they are classified as “regular workers.”
Other Three Insurances: ‘8 Days a Month’ Rule
National pension, health insurance, and long-term care insurance only apply if a worker is employed at the same business for at least eight days in a month. If a temporary worker shifts between different employers, they must work at least eight days at one employer for deductions to occur.
Clarifying the ‘8 Days’ Misconception
A common misunderstanding is that working from the first of the month means all four insurances apply. The crucial factor is whether the worker has surpassed eight days at the same workplace. For example, if you work until May 8th, deductions for the other three insurances start from May 9th. If you don’t meet the eight-day threshold in a month, only employment insurance is deducted.
Calculating Insurance Application Days
For temporary workers, understanding the timing of deductions is vital. Here’s a breakdown:
- Start work on May 1st as a temporary worker
- May 1-8: Only employment insurance is deducted
- From May 9: Deductions for national pension, health insurance, and long-term care insurance begin
If the eight-day requirement isn’t met, only employment insurance applies that month.
Mandatory National Pension Contribution
Once national pension deductions start after eight days of work, contributions are mandatory. Each month, a certain percentage of your income is allocated to the national pension, which will eventually count towards your retirement benefits.
Transition to Employment-Based Health Insurance
Health insurance also transitions to employment-based status after exceeding eight days of work in a month. If you’re paying separately as a regional member, employment-based status takes precedence. Long-term care insurance is deducted at approximately 12.81% of health insurance premiums as of 2025, providing for elderly care services.
Verifying Deductions: A Crucial Step
While these rules are straightforward, discrepancies can occur if employers fail to accurately report workdays or only report employment insurance. It’s essential to use the ‘4 Major Social Insurance Information Connection Center’ online to verify your deduction history and insured status.
Accessing Your Work History
To check your insurance status:
- Visit the 4 Major Insurance Information Connection Center
- Select ‘Individual Services’ → ‘Qualification History Inquiry’
- Verify the acquisition dates for employment insurance, national pension, and health insurance
Given the complexity and differing application criteria, temporary workers should meticulously track their workdays and verify they meet the eligibility requirements to ensure accurate insurance deductions.
Conclusion: Stay Informed and Proactive
The key takeaway is the importance of understanding how insurance deductions work for temporary workers. By keeping track of workdays and regularly checking deduction records, workers can avoid unexpected surprises and ensure their rights and benefits are accurately administered.