Monthly unemployment benefits in South Korea will fall by up to 230,000 won as early as next year after the government moves to exclude unpaid rest days from its calculations. Employment insurance premium rates will also rise for the first time in five years, increasing the amount deducted from workers' paychecks each month.
The Ministry of Employment and Labor reviewed the plan, titled "Employment Insurance System Reform Measures," at a meeting of the Employment Insurance Committee on the 1st. Under the plan, jobless benefits will be calculated on the basis of six days a week rather than seven, with unpaid rest days removed. The total number of payment days, ranging from 120 to 270, and the total amount paid will remain unchanged.
Applying next year's minimum wage, recipients at the floor will see monthly payments drop to 1.76 million won from 1.98 million won, a decrease of 220,000 won. The ceiling falls to 1.81 million won from 2.04 million won, down 230,000 won. The payment period lengthens in return, leaving the total unchanged. The ministry said the change is intended to narrow cases in which benefits exceed what recipients earned while working and to encourage faster returns to employment.
The employment insurance premium rate rises to 2.0% from 1.8% next year, the first increase in five years. Workers and employers will each shoulder an additional 0.1 percentage point. A worker earning 3 million won a month will pay 30,000 won in premiums, up 3,000 won from 27,000 won. In 2028, the government will create a separate "work-family balance account" to carve out spending on maternity protection, including parental leave benefits. The income threshold that disqualifies workers from the early reemployment allowance will also be lowered to 3 million won a month from 5.74 million won.
"This amendment was drawn up to secure the sustainability of the employment insurance fund," a ministry official said. "We plan to revise the law and its subordinate statutes within this year."
