Guide on EPS 4 Major Insurances

Application and claim procedure for four major insurances under EPS
  • What is the 4 major insurances of the Employment Permit System?
    • the four insurance policies (Departure Guarantee Insurance, Guarantee Insurance, Return Cost Insurance, and Casualty Insurance) that foreign workers and their employers must subscribed based on “The Act on the Employment of Foreign Workers, etc.”
Type and content of EPS 4 major insurance
  • Purchased by employer
    • Category Departure Guarantee Insurance Guarantee Insurance
      Introduction As a relief burden on responsibility for retirement payment of small and minor enterprises business Guarantee for unpaid salary
      Person who subscribe to Insurance Employer
      (Employers hiring less than 4 regular employees including new and transferred ones with a labor contract that takes effect after the 1st of August 2011,are required to subscribe to the insurance.)
      Employer
      Person insured Employee (employers will get the benefit if the employee has not reached a minimum of 1 year service or if he has abandoned his work) Employee
      Insurance fee According to EPS 8.3% of employee’s salary per month Per employee 16,000won per year
      Application period Effectively start after 15 days from the conclusion of the contractt Effectively start after 15 days from the conclusion of the contract
      Case of insurance claim Saving as a retirement pay(when employee departure or change of working place without desertion worked Total unpaid salary
      - maximum of 2M won
      Claim procedures 1) foreign workers who has worked for more than one year without desertion or work abandonment (change of working place or departure)
      - claim application
      - copy of bank pass book(must reflect the employees' name)
      - copy of passport or foreigners registration card
      2) employers will get the benefit if the employee has not reached a minimum of 1 year service or if he has abandoned his work
      After verification from the department of labor inspector
      - application for insurance payment
      - confirmation of unpaid claimes and other monetary claims
      - detail of unpaid itemized statement
      - copy of bank passbook
      Penalties of non admission or non registration Pursuant to Act on the Foreign Worker’s Employment Article 13 and enforcement ordinance article 21, impose a penalty less than 5M won Pursuant to Act on the Foreign Worker’s Employment Article 23 and Enforcement Ordinance Article 27, impose a penalty less than 5M won
  • Purchased by foreign worker
    • Category Return Cost Insurance Casualty Insurance
      Introduction Savings or insurance to cover going-home expenses such as air fare of foreign workers Against death or disability of a foreign worker aside from occupational accidents
      Person who subscribe on the Insurance Employee Employee
      Person insured Employee Employee
      Insurance fee 4000,000~600,000won lump sum payment Lump sum payment(amount depends on gender, age and period of stay)
      Application period Effectively start after 80 days from the conclusion of the contract Effectively start after 15 days from the conclusion of the contract (* verify if its 15 days or 80 days)
      Case of Insurance claim Total amount will be paid upon departure of foreign workers for home country(except temporary return) Death or disability are not grounds for occupational case
      - injury : max 30M won
      - sickness : max 15M won
      Claim procedures After issuing the confirmation departure schedule from Job Center
      - claim application
      - copy of bank passbook
      - copy of passport or foreigners registration card
      - application for collection insurance
      - accident case:medical disorder certificate
      - death case:medical death certificate
      - family verification(death case)
      - proof of family certification(notarize by embassy )
      - letter of attorney(death case)
      - copy of passport or foreigners registration card
      - copy of bank passbook
      Sanction of non admission Pursuant to Act on the foreign worker’s employment article 15 and enforcement ordinance article 22, impose a fine for default less than 1M won Pursuant to Act on the foreign worker’s employment article 23 and enforcement ordinance article 28, impose a penalty less than 5M won