[Enforcement Date 04. Apr, 2011.] [Presidential Decree No.22826, 04. Apr, 2011., Partial Amendment]
Ministry of Employment and Labor (Employment Insurance Planning Division) , 044-202-7359 Ministry of Employment and Labor (Industrial Compensation Policy Division) , 044-202-7712
CHAPTER I General Provisions <Presidential Decree No. 22408, Sep. 29, 2010>
Article 1 (Purpose)
The purpose of this Decree is to stipulate matters delegated by the Act on the Collection, etc., of Premiums for Employment Insurance and Industrial Accident Compensation Insurance and particulars necessary for the enforcement thereof. <This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Article 2 (Definition)
(1)The meaning of the terms used in this Decree are as follows :
1."Total construction work" refers to a whole range of work carried out in relation to construction work for the following items:
A. Construction work such as civil engineering work, building work, and other construction work for structures, which are carried out to complete a final object, and the work of remodeling, repairing, altering and dismantling a building structure etc.
B. Preparation and finishing work, etc., needed to carry out each construction work under item A.
2."Total construction amount" refers to the amount of contract costs (including the market prices of materials in case a person who issues an order supplies materials) for carrying out total construction work : Provided that in the case of construction work carried out by a person who is not a constructor prescribed in Article 2 (5) of the Framework Act on the Construction Industry and not subject to restrictions on persons who carry out construction work pursuant to Article 41 of the same Act, an amount calculated according to the methods determined and announced by the Minister of Employment and Labor shall be the total construction amount; and
3."The number of ordinarily employed workers" is as follows : Provided that the businesses prescribed in each of the subparagraphs of Articles 15 (1) shall refer to the number of workers calculated pursuant to paragraph (2) of the same article:
A.In case a business begins before the insurance year concerned: the number produced by dividing the sum of the number of workers used as of the last day of each month of the previous year by the number of months of business operation : Provided that if it is difficult to confirm the number of workers in a construction business, it refers to the number produced according to the following formula. In this case, "construction amount actually recorded" refers to the amount produced by subtracting the amount of construction costs legally contracted out pursuant to the Framework Act on the Construction Industry and other relevant laws from the total construction amount actually recorded (referring to the total amount for construction work completed in the insurance year concerned), and "average monthly remuneration in the construction industry" refer to the average remuneration calculated and announced by the Minister of Employment and Labor on the basis of wages in the construction industry in the wage and working hours survey report prepared by the Minister of Employment and Labor among the designated statistics under Article 3 of the Statistics Act.
construction amount actually recorded for the previous year ×
labor cost ratio for the previous year
average monthly remuneration in the construction industry for the previous year × number of months of business operation
B.In case a business begins during the insurance year concerned : the number of workers used as of the date of the establishment of the insurance relationship.
(2) If the same construction work carried out to complete a final object is divided into two parts or more and they are contracted out under the name of entrustment or otherwise (including cases where the person issuing the order directly carries out part of the construction work), the total construction amount under paragraph (1) 2 shall be calculated by adding each of the contract amounts : Provided that this shall not apply, if each contract work is carried out separately and independently in terms of time and place.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Article 2-2 (Money and Valuables Excluded from Remuneration)
"The money and valuables prescribed by the Presidential Decree" in subparagraph 3 of Article 2 of the Act on the Collection, etc. of Premiums for Employment Insurance and Industrial Accident Compensation Insurance (hereinafter referred to as "the Act") shall refer to the non-taxable earned income under subparagraph 3 of Article 12 of the Income Tax Act.
<This Article Newly Inserted by Presidential Decree No. 22408, Sep. 29, 2010>
Article 3 (Application of Standard Remuneration)
(1)"Cases where there are reasons prescribed by the Presidential Decree" in Article 3 (1) of the Act refer to those falling under any of the following subparagraphs:
1. In case remuneration-related data are nonexistent or unclear; and
2.In case it is difficult to locate the business due to the relocation, etc., of the business or workplace (hereinafter referred to as "business")
(2)The standard remuneration under Article 3 (2) of the Act shall be applied according to the following classification:
1.Monthly standard remuneration shall be applied to regular workers paid the fixed amount of remuneration on a monthly basis;
2.Hourly standard remuneration shall be applied to part-time workers, workers (hereinafter referred to as "hourly remuneration workers" in this Article) who are paid remuneration according to the number of their working hours, and workers (hereinafter referred to as "daily remuneration workers" in this Article) who are paid daily remuneration according to the number of their working days, regarding the prescribed number of working hours per week as the actual number of working hours : Provided that if it is not clear whether a worker is a hourly wage worker or daily wage worker or if the prescribed number of working hours per week cannot be confirmed, monthly standard remuneration shall be applied.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Article 4 (Scope of Construction Businesses, etc.)
The scope of businesses prescribed by this Decree, if there is none specifically prescribed by this Decree, shall be subject to the Korean Standard Industrial Classification announced by the head of the National Statistical Office under the Statistics Act.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Article 5 (Agent)
(1) An employer may appoint an agent and have the agent do what the employer shall do under the Act and this Decree.
(2)When an employer appoints or dismisses an agent, he/she shall report this to the Korea Workers Compensation and Welfare Service (hereinafter referred to as "the Corporation") prescribed in Article 10 of the Industrial Accident Compensation Insurance Act. <This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
CHAPTER Ⅱ Establishment and Termination of Insurance Relationship
Article 6 (Conditions for Blanket Application for Businesses)
(1) "The conditions prescribed by the President Decree" in Article 8 (1) 3 of the Act refer to business done by a person falling under any of the following subparagraphs:
1.A constructor prescribed in subparagraph 5 of Article 2 of the Framework Act on the Construction Industry;
2.A housing constructor prescribed in Article 9 of the Housing Act;
3.A constructor prescribed in subparagraph 3 of Article 2 of the Electricity Construction Business Act;
4.An information and communications-related constructor prescribed in subparagraph 4 of Article 2 of the Information and Communications Work Business Act;
5.A fire-fighting system constructor prescribed in Article 2 (1) 2 of the Fire-fighting Service Act; and
6.A businessman engaging in repairing cultural properties prescribed in Article 27 of the Protection of Cultural Properties Act.
(2)An employer who intends to get approval for blanket application pursuant to the former part of Article 8 (2) of the Act shall apply to the Corporation.
(3)An employer who intends to get approval for the cancelation of blanket application pursuant to the former part of Article 8 (3) of the Act shall apply to the Corporation for this no later than seven days before the beginning of the following insurance year. <This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Article 7 (Blanket Application for Contract Business)
(1) "The business prescribed by the Presidential Decree, such as construction business" in Article 9 (1) of the Act refers to construction business.
(2) A subcontractor gaining recognition as an employer pursuant to the proviso of Article 9 (1) of the Act shall be limited to cases where a subcontractor is the employer of a business prescribed in Article 6 (1).
(3)If a subcontractor intends to gain recognition as an employer pursuant to the proviso of Article 9 (1) of the Act, the original contractor shall sign a written contract with the subcontractor over the takeover of the responsibility for paying premiums and apply for the approval of the subcontractor as an employer to the Corporation within 30 days from the starting date of the subcontracted work.
(4) In the case a work-related accident as prescribed in subparagraph 1 of Article 5 of the Industrial Accident Compensation Insurance Act occurs between 15 days from the start of construction of the subcontracted work to the date the application for approval is submitted by a original contractor who applied for the approval of the subcontractor gaining recognition as an employer under paragraph (3), the Corporation shall not approve recognition of the subcontractor as an employer.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Article 8 (Notification of Establishment and Termination of Insurance Relationship)
The Corporation shall, if an insurance relationship is established or terminated, inform the employer concerned of this without delay.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Article 9 (Report of Changes in Insurance Relationship)
Pursuant to Article 12 of the Act, an employer shall, if any change is made to the following matters concerning his/her business, report this to the Corporation within 14 days of the date on which the change is made: Provided that subparagraph 6 shall be reported within 14 days from the first day of the following insurance year:
1.The name and resident registration number of the employer(the representative, in the case of a corporation);
2. The name and location of the business;
3. The type of the business;
4.Business registration number (including corporation registration number in the case of a corporation);
5.Business period, in the case of businesses with a fixed term, such as construction work or logging; and
6.The number of ordinarily employed workers, in the case where any change is made to entitlement to preferentially supported enterprises under Article 12 of the Enforcement Decree of the Employment Insurance Act.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
CHAPTER Ⅲ Insurance Premiums
Article 10 (Vicarious Payment of Premiums by Persons Ordering Construction Work)
(1)In case the State, local governments, or public agencies under the Act on the Operation of Public Agencies, or other institutions to which the State or a local government contributes order construction work, they may pay premiums on behalf of the original contractor after obtaining approval from the Corporation, if premiums are clearly stated in the construction amount and the original contractor agrees.
(2)A person who vicariously pays premiums pursuant to paragraph (1) shall, if any change is made to the following matters, report this to the Corporation without delay :
1.The name and location of the person who vicariously pays premiums and the name of the representative; and
2.The amount, period and contents of the construction work.
(3) If it becomes unnecessary to vicariously pay premiums, or if it is deemed that there are other justifiable reasons, the Corporation may revoke its approval for the vicarious payment of premiums under the conditions as prescribed by the Ordinance of the Ministry of Employment and Labor.
(4)If revoking its approval for the vicarious payment of premiums pursuant to paragraph (3), the Corporation shall inform the person who vicariously pays premiums and the original contractor of the fact without delay.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Article 11 (Determination of Labor Cost Ratio, etc.)
(1)The methods of determining a labor cost ratio (hereinafter referred to as "labor cost ratio") under Article 13 (6) of the Act are described in the following subparagraphs :
1.The labor cost ratio for construction work shall be determined and announced by the Minister of Employment and Labor, separately for general construction work and for subcontracted construction work, in consideration of the proportion, etc., of the sum of total remuneration paid to workers by employers who were engaged in the construction business during the three years to June 30 of the year at the time of calculation (hereinafter referred to as "the base insurance year") in the sum of all construction amounts of the same employers; and
2.The labor cost ratio for logging shall be determined and announced by the Minister of Employment and Labor in consideration of the proportion, etc., of the sum of all remuneration paid to workers by employers who were engaged in logging business during the three years to June 30 of the base insurance year concerned in the sum of all logging expenses of the same employers and shall be expressed as the amount of remuneration per unit volume of lumber. <Amended by Presidential Decree No. 22269, Jul. 12, 2010>
(2)The methods of determining the amount of estimated total wages or total wages based on the labor cost ratio for construction work are described in the following subparagraphs.
1.The amount of estimated total remuneration shall be produced by multiplying the total construction amount by the labor cost ratio: Provided that in case the amount of estimated total remuneration produced based on the labor cost ratio exceeds 90/100 of the contract amount, 90/100 of the contract amount shall be the amount of estimated total remuneration; and
2.The amount of total remuneration shall be produced by adding the sum of the total amount of remuneration paid to workers directly employed for the construction work concerned to the amount calculated by multiplying the total amount for subcontracted construction work (excluding the amount for subcontracted construction work by subcontractors who get approval from the Corporation pursuant to the proviso of Article 9 (1) of the Act) by the labor cost ratio for subcontracted construction work. The equation for this calculation is as follows:
Total remuneration = total amount of remuneration paid to workers directly employed for the construction work concerned + {total amount for subcontracted construction work (excluding the amount for subcontracted construction work by subcontractors who get approval from the Corporation pursuant to the proviso of Article 9 (1) of the Act) x the labor cost ratio for subcontracted construction work}
(3)In the case of logging businesses, the amount of estimated total remuneration or total remuneration shall be produced by multiplying the volume of lumber by the labor cost ratio.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Article 12 (Employment Insurance Premium Rate)
(1) The employment insurance premium rates under Article 14 (1) of the Act are as follows: <Amended by Presidential Decree No. 22807, Mar. 30, 2011>
1.The premium rate for employment security and vocational skills development projects shall be determined as follow:
A.A business which employs less than 150 workers : 25/10,000;
B.A business which employs 150 workers or more and falling within the scope of preferentially supported enterprises prescribed in Article 12 of the Enforcement Decree of the Employment Insurance Act : 45/10,000;
C.A business which employs 150 or more but less than 1,000 workers and not falling under item B : 65/10,000; and
D.A business which employs 1,000 workers or more and not falling under item B and a business directly conducted by the State and a local government : 85/10,000
2. The premium rate for unemployment benefits : 11/1,000
(2)In applying the provisions of paragraph (1) 1, the number of workers shall be the sum of the numbers of workers in all businesses at home conducted by the employer concerned : Provided that in the case of a business which supervises public housing under subparagraph 2 of Article 2 of the Housing Act, the number of workers shall be calculated by type of business.
(3)In applying the provisions of paragraph (1) 1, a subcontractor who becomes an employer subject to the Act pursuant to the proviso of Article 9 (1) of the Act shall be subject to the premium rate for employment security and vocational skills development projects applicable to the original contractor : Provided that in regards to each of the businesses run by an employer who becomes subject to blanket application pursuant to Article 8 of the Act, if the subcontractor is deemed an employer subject to the Act pursuant to the proviso of Article 9 (1) of the Act, the premium rate for employment security and vocational skills projects applicable to the employer who is the subcontractor concerned shall be applied.
(4) Notwithstanding the provisions of paragraphs (1) 1 and (2), if a business is transferred or merged during the insurance year, the premium rate for employment security and vocational skills development projects applicable before the transfer and merge shall be applied to the transferred or merged business during the insurance year concerned.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Article 13 (Public Announcement of Industrial Accident Compensation Insurance Premium Rate)
When the Minister of Employment and Labor has determined premium rates (hereinafter referred to as "industrial accident insurance premium rate") for industrial accident compensation insurance (hereinafter referred as "industrial accident insurance") pursuant to Article 14 (3) of the Act, he/she shall announce it, along with the kinds and contents of the businesses to which the premium rates are applied, through an official gazette and general daily newspapers, etc., with a nationwide circulation under Article 9 (1) of the Act on the Promotion of Newspapers, etc. <This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Article 14 (Application of Industrial Accident Insurance Premium Rate)
(1)If a same employer carries out two or more businesses whose types are different under Article 14 (3) of the Act in the same workplace, the industrial accident insurance premium rate applicable to the principal business (hereinafter in this Act referred to as "principal business") which accounts for a larger share than others in terms of the number of workers, total remuneration, etc., shall be applied to all the businesses in the workplace.
(2)The principal business under paragraph (1) shall be determined in the following order:
1. Business with more workers than others ;
2.Business with more total remuneration than others, in case the number of workers is equal or it is impossible to know the number of workers; and
3.Business manufacturing goods or providing services with larger sales volume than others, in case the principal business cannot be determined pursuant to subparagraphs 1 and 2.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Article 15 (Business Subject to Special Case of Industrial Accident Insurance Premium Rate)
(1) "The businesses prescribed by the Presidential Decree" in Article 15 (2) of the Act refer to businesses described in the following subparagraphs :
1.Businesses in the construction industry which are subject to blanket application under Article 8 (1) and (2) of the Act and whose total construction amount actually recorded for the insurance year two years prior to the current insurance year is four billion won or more; and
2.Businesses, other than construction and logging businesses, which have 20 ordinarily employed workers or more
(2)In the case of applying the special case (hereinafter referred to as "merits rate") of the determination of industrial accident insurance premium rates under Article 15 (2) of the Act, the number of workers under paragraph (1) 2 shall be calculated according to the provisions of Article 2 (1) 3 A, and the calculation period shall be from July 1 of the year before the base insurance year until June 30 of the base insurance year.
(3)If the type of a business subject to the industrial accident insurance premium rate under paragraph (1) has changed during the three years to June 30 of the base insurance year, the merits rate shall not be applied to the business : Provided that even in the case the type of business has changed, if major working conditions for the business concerned, such as machine facilities, work process, etc. are deemed not to have been changed, the merits rate shall apply.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Article 16 (Ratio of Insurance Expenditure to Revenue for Application of Merits Rate)
"The ratio prescribed by the Presidential Decree" in Article 15 (2) of the Act refers to more than 85/100 or 75/100 or less.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Article 17 (Calculation of Ratio of Insurance Expenditure to Revenue for Application of Merits Rate)
(1) In the case of calculating the ratio of industrial accident insurance benefits to industrial accident insurance premiums (hereinafter referred to as "industrial accident insurance premiums") pursuant to Article 15 (2), the amount of industrial accident insurance premiums shall be the sum of the following amounts as of June 30 of the base insurance year:
1.In the case of the base insurance year: The sum of monthly insurance premiums (hereinafter referred to as "monthly insurance premiums") pursuant to Article 16-3 (1) of the Act from January to June [in the case of a business falling under Article 19-2, the amount equivalent to 1/2 of the estimated insurance premium (hereinafter referred to as "estimated premiums") pursuant to Article 17 (1) of the Act]
2.In the case of the two insurance years preceding the base insurance year: The sum of calculated premiums (hereinafter referred to as "calculated premiums“) pursuant to Article 16-9 (1) and (2) of the Act [in the case of a business falling under Article 19-2, the sum of final premiums (hereinafter referred to as "final premiums") pursuant to Article 19 (1) of the Act]
3. In the case of the three insurance years preceding the base insurance year: An amount calculated according to the following formula.
(Final premium amount for or calculated premiums amount for the insurance year three years before the base insurance year) × 6 ÷ (total number of months during which insurance relations continue in the insurance year three years before the base insurance year)
(2)In calculating the ratio of industrial accident insurance benefits to industrial accident insurance premiums pursuant to Article 15 (2) of the Act, the amount of the industrial accident insurance benefits shall be the sum of all amounts of industrial accident insurance benefits determined to be paid (referring to the causal act for disbursement; hereinafter the same shall apply) from July 1 of the insurance year three years prior to the base insurance year to June 30 of the base insurance year. In this case, if the industrial accident insurance benefits determined to be paid are disability or survivors' compensation annuities, it shall be deemed that the lump-sum disability or survivors' compensation are determined to be paid when the payment of such annuities is first determined.
(3)The vocational rehabilitation benefits pursuant to Article 72 of the Industrial Accident Compensation Insurance Act and the amount of insurance benefits determined to be paid due to an accident caused by a third party action pursuant to Article 87 (1) of the same Act or inevitable reasons such as natural disasters, blackouts, etc., shall be excluded from the sum of industrial accident compensation insurance benefits under paragraph (2): Provided that the amount of insurance benefits corresponding to the proportion that is not recognized as the third party's faults by the final ruling of the court, etc. shall be added.
(4) With regard to the amount of insurance benefits under the proviso of paragraph (3), the date on which the court delivers its final ruling shall be considered the date on which the insurance benefits concerned are determined to be paid.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Article 18 (Increase or Decrease Rates of Merits Rates)
(1) An increase or decrease in industrial accident insurance premium rates under Article 15 (2) of the Act shall be subject to the rates shown in Table 1.
(2) When the Corporation has decided to raise or lower industrial accident insurance premium rates pursuant to Article 15 (2) of the Act, it shall inform the employer concerned of the increased or decreased premium rates without delay.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Article 19 (Withholding of Employment Insurance Premiums)
If an employer intends to withhold at source employment insurance premiums (hereinafter referred to as "employment insurance premiums") pursuant to Article 16 (1) of the Act, he/she shall, whenever paying remuneration to an insured worker, deduct the amount of employment insurance premiums to be borne by the insured worker, which are calculated on the basis of the amount of remuneration added by remuneration that have been paid irregularly since the immediately preceding regular payday, from the amount to be paid.
<This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010>
Article 19-2 (Businesses Excluded from Imposing and Collecting on a Monthly Basis)
"Business such as construction business etc. prescribed by the Presidential Decree" pursuant to Article 16-2 (2) of the Act shall refer to businesses falling under the following subparagraphs:
1. Construction business (excluding construction equipment operation businesses)
2. Logging from among forestry
<This Article Newly Inserted by Presidential Decree No. 22408, Sep. 29, 2010>
Article 19-3 (Reasons for Calculating Monthly Insurance Premium on a Daily Pro Rata Basis)
"Reasons prescribed by the Presidential Decree such as a worker's leave etc." pursuant to Article 16-4 (3) of the Act shall refer to reasons falling under any of the following subparagraphs:
1. Workers temporarily off work or taking leave
2. Protective leave pursuant to Article 74 (1) and (2) of the Labor Standards Act
3. Other reasons deemed by the Minister of Employment and Labor as a condition of a worker not providing work
<This Article Newly Inserted by Presidential Decree No. 22408, Sep. 29, 2010>
Article 19-4 (Remuneration Excluded from Monthly Average Remuneration etc. when Calculating Premiums)
(1) "Reasons prescribed by the Presidential Decree such as allowances during business suspension etc. pursuant to Article 46 (1) of the Labor Standards Act" under Article 16-5 of the Act shall refer to reasons prescribed in each subparagraph of Article 19-3.
(2) Remuneration during the period falling under the reasons pursuant to paragraph (1) shall be excluded from the monthly average remuneration or total remuneration when calculating industrial accident insurance premiums.
<This Article Newly Inserted by Presidential Decree No. 22408, Sep. 29, 2010>
Article 19-5 (Report of Total Remuneration etc.)
(1) Matters to be reported by an employer by the end of February every year pursuant to Article 16-10 (1) of the Act are as the following subparagraphs:
1. Worker's name and resident registration number
2. If an employer newly hired a worker during the previous year, the date of employment (referring to the date of acquisition of the qualification of the insured pursuant to Article 13 of the Employment Insurance Act)
3. If an employer terminated the employment relationship with a worker during the previous year, the date of employment relationship termination (referring to the date of loss of qualification of the insured pursuant to Article 14 of the Employment Insurance Act).
4. If an employer transferred a worker to another workplace, the transfer date (referring to the transfer date pursuant to Article 9 of the Enforcement Decree of the Employment Insurance Act).
5. The worker's individual
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