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Information on Employment Permit System (EPS) > Getting Various Insurances and Benefits
Employment Permit System (EPS)
Getting Various Insurances and Benefits
By systematically introducing and managing foreign workers,
the Employment Permit System alleviates the lack of laborers in small to mid-sized businesses and
contributes to the balanced growth of the nation’s economy.
Getting Various Insurances and Benefits
When foreign workers reside in Korea, steps are taken to ensure that they are insured at a minimal cost, and as violations are punishable by law, they must be insured.
- Verify the name of the insured and the cost, and then inquire to the insurance company concerned, and purchase insurance within the time limit.
- To check in detail, click on the name of the insurance.
| Number | Type of Insurance | Name of the Insured | Cost | Insurance Company in charge |
|---|---|---|---|---|
| 01 | Departure Guarantee Insurance |
Employer | 8.3% of average monthly wage in the Employment Permit |
Samsung Fire & Marine Insurance |
| 02 | Guarantee Insurance | Employer | 16,000 won | Seoul Guarantee Insurance |
| 03 | Return Cost Insurance | Foreign Worker | 400,000 won – 600,000 won by country |
Samsung Fire & Marine Insurance |
| 04 | Casualty Insurance | Foreign Worker | By foreign workers | Samsung Fire & Marine Insurance |
| 05 | Employment Insurance | Employer | Korea Workers’ Compensation & Welfare | |
| 06 | Industrial Accident Compensation Insurance |
Employer | Korea Workers’ Compensation & Welfare | |
| 07 | Health Insurance | Employer | National Health Insurance Service | |
| 08 | National Pension | Employer | National Pension Service |
| Departure Guarantee Insurance | |
|---|---|
| Intent and subject of insurance | This is a mandatory insurance used for the purpose of disbursing severance pay to the foreign worker upon his departure. Workplaces with one or more full-time workers (applicable to workplaces with four or less workers since August 2011) employing foreign workers must enroll in this insurance within 15 days of the effective date of the labor contract. ※ For workplaces with four (4) or less full-time workers, only new foreign workers and foreign workers with site changes after August 1, 2011 must enroll in the Departure Guarantee Insurance. |
| Instructions for getting insurance | One can enroll in the insurance through an Employment Training Center for Foreign Workers or through Samsung Fire & Marine Insurance. . (Samsung Fire & Marine Insurance: 02-2119-2400) |
| The insurance policy holder | businesses |
| Insurance premium | 8.3% of the worker's regular wages (for workplaces with four workers or less: 4.15% between August 1, 2011 through December 31, 2012; 8.3% from January 1, 2013 and onwards) must be submitted to the insurance provider (Samsung Fire & Marine Insurance) every month. |
| Note | The differential pay is disbursed when the worker has not met the requirements of the Guarantee of Workers’ Retirement Benefits Act. If not insured, fine for negligence up to 5 million won |
| Guarantee Insurance | |
|---|---|
| Intent and subject of insurance | This insurance provides safety against back wages. Employers who have less than 300 employees, or are not subject to the terms of the Wage Claim Guarantee Act are subject to this insurance; the user must enroll within 15 days of the effective date of the labor contract. |
| Instructions for getting insurance | Employers can enroll through an Employment Training Center for Foreign Workers or the Seoul Guarantee Insurance Company (SGI) (SGI Namdaemun Branch: 02-777-6689, Guro Digital Branch: 02-2081-1495) |
| The insurance policy holder | businesses |
| Insurance premium | 16,000 KRW a year per worker |
| Note | Exempt Workplaces: Worksites that only hire overseas Koreans with foreign citizenship or businesses or enterprises that are not subject to the Wage Claim Guarantee Act If not insured, fine for negligence up to 5 million won |
| Return Cost Insurance | |
|---|---|
| Intent and subject of insurance | As an insurance that foreign workers must hold within 80 days from the effective date of labor contract in order to secure their return cost, the insurance is mandatory for both general foreign workers and ethnic Korean foreign workers. |
| Instructions for getting insurance | Foreign workers must sign insurance contract at the employment training institution, and pay the premium within the payment period to the designated account. Committed foreign workers must re-sign the contract, so must inquire to the Samsung Fire & Marine Insurance company. |
| The insurance policy holder | Foreign Worker |
| Insurance premium | 400,000 won (China, Philippines, Indonesia, Thailand, Vietnam) 500,000 won (Mongolia and other countries) 600,000 won (Sri Lanka) |
| Note | If not insured, fine for negligence up to 1 million won |
| Casualty Insurance | |
|---|---|
| Intent and subject of insurance | As an insurance that foreign workers must hold within 15 days from the effective date of labor contract to prepare for injuries or diseases other than accidents on the job, the insurance differs depending on the age and gender of the holder (9,100 won per year for a 30 year old male). |
| Instructions for getting insurance | Foreign workers must sign insurance contract at the employment training institution, and pay the premium within the payment period to the designated account. |
| The insurance policy holder | foreign workers |
| Insurance premium | As an insurance that foreign workers must hold within 15 days from the effective date of labor contract to prepare for injuries or diseases other than accidents on the job, the insurance differs depending on the age and gender of the holder (9,100 won per year for a 30 year old male). |
| Note | If not insured, fine for negligence up to 5 million won |
| Employment Insurance | |
|---|---|
| Intent and subject of insurance | The Employment Insurance incorporates unemployment insurance as well as employment stabilization, technical abilities, and other labor market policies to form a comprehensive social security insurance. and enrollment for foreign workers is optional. |
| Instructions for getting insurance | The employer submits the “Employment Insurance Enrollment Application for Foreign Workers” to the local Employment Support Center for enrollment. |
| The insurance policy holder | foreign workers |
| Insurance premium | Worker’s Responsibility (Premium for Unemployment Benefits) = Monthly Pay x Employment Insurance Rate (Unemployment Pay) 0.45% Company’s Responsibility (Unemployment Pay + Employment Stabilization, Skills Development) = Monthly Pay x Employment Insurance Rate (Stabilization, Skills Development) 0.7% |
| Note | As this is an optional insurance, employers must receive consent of the foreign worker prior to enrollment After enrollment, unemployment benefits are the same as those of native workers. |
| Industrial Accident Compensation Insurance | |
|---|---|
| Intent and subject of insurance | Industrial accident compensation insurance is a compulsory insurance guaranteed by the government to provide security to injured workers and their families. The insurance is funded by a small fee collected from employers by the government in accordance with the Labor Standards Act, and is paid out to the injured worker as compensation on the employer’s behalf. Enrollment is mandatory for workplaces with one (1) or more employees. |
| Instructions for getting insurance | Employers must submit “Report Form on Establishment of Insurance Relationship” to the local Korea Workers’ Compensation and Welfare Service office within 14 days of hiring foreign workers |
| The insurance policy holder | Employer |
| Insurance premium | Insurance rates for each industry and occupation are announced annually on December 31 Insurance premium is calculated by the total salary for all employees multiplied by the insurance rate |
| Note | If not insured, fine for negligence up to 3 million won |
| Health Insurance | |
|---|---|
| Intent and subject of insurance | The Health Insurance is an insurance that covers medical expenses. Employers who hire foreign workers, and foreign workers themselves must enroll in it. |
| Instructions for getting insurance | Employers who have hired foreign workers must submit an Employee Enrollment Form to the local National Health Insurance Corporation within fourteen (14) days of hiring. |
| The insurance policy holder | foreign workers |
| Insurance premium | Health Insurance Premium = Monthly Pay x 2.54% Insurance Rate (Paid by Employers and Workers separately) |
| National Pension | |
|---|---|
| Intent and subject of insurance | The National Pension system is a social security scheme that stabilizes welfare and the livelihood of the people by collecting a pre-set fee from members, employers, and the country. This only applies for foreign workers from countries with reciprocal agreements with the Republic of Korea. If a foreign national satisfies the disbursement requirements placed on Korean nationals, the individual can collect the entirety of the pension. Foreign nationals who enrolled in the National Pension system with E-8 (Training Employment), E-9 (Non-professional employment), visas returning to their home nations (including foreign nationals who have returned already) can collect a one-time refund. |
| Instructions for getting insurance | Employers who have hired foreign workers must submit a Workplace Membership Eligibility Report form to the local National Pension Service by the 15th day of the month after the date of hiring. |
| The insurance policy holder | foreign workers |
| Insurance premium | Pension premium = Member’s Monthly Income x 4.5% (Pension Rate) (Paid by employers and workers separately) |
| Note | Countries with Reciprocal Pension Agreements (as of December 2012)
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