[Enforcement Date 01. Oct, 2019.] [Presidential Decree No.30084, 17. Sep, 2019., 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 PROVISONS
Article 1 (Purpose) The purpose of this Decree is to prescribe matters delegated by the Act on the Collection of Insurance Premiums, etc. for Employment Insurance and Industrial Accident Compensation Insurance as well as matters necessary for enforcing the said Act.
[This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010]
Article 2 (Definitions) (1) The terms used in this Decree shall be defined as follows: <Amended by Presidential Decree No. 23282, Nov. 1, 2011; Presidential Decree No. 25047, Dec. 30, 2013; Presidential Decree No. 27051, Mar. 22, 2016>
1. The term "entire construction project" means all the work performed in relation to each of the following construction works:
(a) Public works, construction works, or any other works to build structures or to remodel, repair, modify, or dismantle buildings, which are performed to complete the final subject matter in the relevant construction project;
(b) Preparatory works, finishing works, etc. to perform each of the construction works specified in item (a);
2. The term "total construction cost" means the contract price (including the amount calculated by converting the relevant materials into the market price, if a person placing an order supplies such materials) for the entire construction project to be executed: Provided, That in cases of construction works executed by a person other than the constructors defined in subparagraph 7 of Article 2 of the Framework Act on the Construction Industry, among construction works not subject to restrictions on executors of buildings under Article 41 of the same Act, the amount calculated by the method determined and publicly notified by the Minister of Employment and Labor shall be the total construction cost;
3. The term "number of regular workforce" means the following: Provided, That in cases of the business specified in the former part of Article 15 (1) 2, the number of regular workforce means the number of employees calculated under the latter part of the same subparagraph:
(a) Where a business has commenced before the relevant insurance year: The number calculated by dividing the sum of each number of employees employed as at the last day of each month in the preceding year, by the number of months of operation in the preceding year: Provided, That where it is impracticable to ascertain the number of employees in cases of a construction business, the number of employees means the number calculated based on the following calculation formula; and in such cases, "amount of construction performance" means the remainder after deducting the construction cost for a portion lawfully subcontracted under the Framework Act on the Construction Industry or any other relevant statutes, from the amount of total construction performance (referring to the total construction cost for a portion already completed out of the construction project executed in the relevant insurance year); and "average monthly remuneration for construction business" means the average remuneration calculated and publicly notified by the Minister of Employment and Labor based on the wages for a construction business employing at least five regular employees, which are specified in the survey on workforce of business entities prepared by the Minister of Employment and Labor, among designated statistics defined in Article 3 of the Statistics Act:
Amount of construction performance x Ratio of labor for the preceding year
-------------------------------------------------- -------------------------------------------------- -
Average monthly remuneration for construction business for the preceding year x Number of months of operation
(b) Where a business has commenced during the relevant insurance year: The number of employees employed as at the date the relevant insurance relationship is formed.
(2) Where an identical construction work performed to complete the final subject matter is contracted (including where the person placing an order directly engages in part of the construction work) by dividing it into at least two construction works through outsourcing or any other activity, regardless of the name of such activity, each contract price shall be aggregated when the total construction cost referred to in the main sentence of paragraph (1) 2 is calculated: Provided, That this shall not apply where construction works for each contract unit are separated in time and place and executed independently.
[This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010]
Article 2-2 (Money and Goods Excluded from Remuneration) "Money and goods prescribed by Presidential Decree" in subparagraph 3 of Article 2 of the Act on the Collection of Insurance Premiums, etc. for Employment Insurance and Industrial Accident Compensation Insurance (hereinafter referred to as the "Act") means non-taxable income referred to in 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) "Where any ground prescribed by Presidential Decree exists" in Article 3 (1) of the Act means any of the following cases:
1.Where data related to remuneration is nonexistent or unclear;
2.Where it is impracticable to identify the location of a business due to relocation, etc. thereof or its place of business (hereinafter referred to as "business").
(2) The standard remuneration referred to in Article 3 (2) of the Act shall apply according to the following classifications:
1.For full-time employees who receive a fixed amount of monthly remuneration, the standard remuneration on a monthly basis shall apply;
2. For part-time employees; employees who receive remuneration based on working hours (hereafter in this Article, referred to as "hourly paid employees"); and employees who receive remuneration as daily wages based on working days (hereafter in this Article, referred to as "daily paid employees"), the prescribed working hours per week shall be deemed the actual working hours and thus, the standard remuneration on an hourly basis shall apply: Provided, That where it is unclear whether an employee is an hourly paid employee or daily paid employee, or where it is impracticable to determine the prescribed working hours per week, the standard remuneration on a monthly basis shall apply.
[This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010]
Article 4 (Scope of Construction Business, etc.) Except as otherwise expressly provided for in this Decree, the standard classification concerning industries publicly notified by the Commissioner of the Statistics Korea pursuant to Article 22 of the Statistics Act (hereinafter referred to as "Korean Standard Industrial Classification"), shall apply to the scope of businesses specified in this Decree. <Amended by Presidential Decree No. 23466, Dec. 30, 2011>
[This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010]
Article 5 (Agents) (1) A business owner may appoint an agent to conduct matters, to be conducted under the Act and this Decree, on his/her behalf.
(2) Where a business owner appoints or dismisses an agent, he/she shall report such appointment or dismissal to the Korea Workers' Compensation and Welfare Service established under Article 10 of the Industrial Accident Compensation Insurance Act (hereinafter referred to as "COMWEL" ).
[This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010]
Chapter II FORMATION AND TERMINATION OF INSURANCE RELATIONSHIP
Article 6 (Requirements for Blanket Application for Businesses) (1) "Requirements prescribed by Presidential Decree" in Article 8 (1) 3 of the Act means construction business under the sectors of the Korean Standard Industrial Classification. <Amended by Presidential Decree No. 29455, Dec. 31, 2018>
(2) A business owner who intends to obtain approval for blanket application under the former part of Article 8 (2) of the Act, shall file an application therefor with COMWEL.
(3) A business owner who intends to obtain approval to terminate the blanket application relationship under the former part of Article 8 (3) of the Act, shall file an application therefor with COMWEL seven days before the following insurance year.
[This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010]
Article 7 (Blanket Application for Contracted Businesses) (1) "Construction business or any other business prescribed by Presidential Decree" in the main sentence of Article 9 (1) of the Act means construction business.
(2) A subcontractor can be deemed a business owner under the proviso of Article 9 (1) of the Act if the subcontractor is: <Amended by Presidential Decree No. 29455, Dec. 31, 2018>
1.A constructor defined in subparagraph 7 of Article 2 of the Framework Act on the Construction Industry;
2. A housing constructor registered under Article 4 of the Housing Act;
3. A constructor defined in subparagraph 3 of Article 2 of the Electrical Construction Business Act;
4. An information and communications construction business entity defined in subparagraph 4 of Article 2 of the Information and Communications Construction Business Act;
5. A fire-fighting system business entity defined in Article 2 (1) 2 of the Fire-Fighting System Installation Business Act;
6.A cultural heritage repair business entity defined in subparagraph 5 of Article 2 of the Act on Cultural Heritage Maintenance.
(3) Where a subcontractor is intended to be deemed a business owner under the proviso of Article 9 (1) of the Act, the relevant original contractor shall conclude a written contract on the transfer of payment of insurance premiums with such subcontractor; and shall file an application with COMWEL for approval to deem the subcontractor a business owner, within 30 days from the date the relevant subcontracted construction project commences.
(4) COMWEL shall not grant approval to deem a subcontractor a business owner, if any of the following grounds arises in connection with the subcontracted construction project with respect to which the original contractor has filed an application for approval to deem the subcontractor a business owner pursuant to paragraph (3): <Amended by Presidential Decree No. 23910, Jun. 29, 2012>
1.Where any occupational accident defined in subparagraph 1 of Article 5 of the Industrial Accident Compensation Insurance Act occurs, during the period from 15 days after commencement of the subcontracted construction project until the application for such approval;
2. Where any occupational accident defined in subparagraph 1 of Article 5 of the Industrial Accident Compensation Insurance Act occurs during the period from commencement of the subcontracted construction project until the application for such approval; and insurance benefits must be collected from the original contractor in connection with such accident pursuant to Article 26 (1) 1 of the Act.
[This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010]
Article 8 (Notice on Formation and Termination of Insurance Relationship) Where an insurance relationship is formed or terminated, COMWEL shall notify the relevant business owner of the formation or termination thereof without delay.
[This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010]
Article 9 (Reporting on Change in Insurance Relationship) Where any of the following matters changes in an insured business, the relevant business owner shall report such change to COMWEL within 14 days from the date the change occurs, pursuant to Article 12 of the Act: Provided, That in cases falling under subparagraph 6, such report shall be filed within 14 days from the first day of the following insurance year:
1.Name and resident registration number of the business owner (the representative in cases of a corporation);
2. Name and location of the business;
3. Type of the business;
4. Business registration number (including the corporate registration number in cases of a corporation);
5. Period of business in cases of businesses with a fixed period, such as a construction project or logging business;
6.Number of regular workforce, if any change occurs in relation to whether the business is an enterprise eligible for preferential support referred to in 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 Insurance Premiums by Person Placing Order for Construction Project) (1) The State, a local government, a public institution prescribed in the Act on the Management of Public Institutions, or any other institution funded by the State or a local government, may pay insurance premiums for an original contractor on his/her behalf with approval from COMWEL, if the insurance premiums are expressly specified in the construction cost when it places an order for the relevant construction project and if the original contractor gives consent to such payment.
(2) A person who vicariously pays insurance premiums pursuant to paragraph (1) shall file a report with COMWEL without delay, if any of the following matters changes:
1.Name and location of the person who vicariously pays the insurance premiums, as well as the name of the representative;
2.Construction cost, construction period, and the details of the construction project.
(3) Where the vicarious payment of the insurance premiums becomes unnecessary or any other justifiable grounds exist, COMWEL may revoke its approval to vicariously pay the insurance premiums, as prescribed by Ordinance of the Ministry of Employment and Labor.
(4) Upon revocation of its approval to vicariously pay the insurance premiums under paragraph (3), COMWEL shall notify the person who vicariously pays the insurance premiums and the relevant original contractor of the revocation, without delay.
[This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010]
Article 11 (Determination, etc. of Ratio of Labor) (1) The method of determining the ratio of labor referred to in Article 13 (6) of the Act (hereinafter referred to as "ratio of labor") shall be as follows:
1.The ratio of labor for construction projects shall be determined and publicly notified by the Minister of Employment and Labor based on the share, etc. of the total remuneration calculated by aggregating each of the total remunerations paid to employees by individual business owners operating a construction business for the three years before June 30 of the year in which the point of time for calculation falls (hereinafter referred to as "base insurance year"), in the total construction cost calculated by aggregating each of the total construction costs of the same business owners; but the ratio of labor for construction projects shall be determined by classifying it into the ratio of labor for general construction projects and the ratio of labor for subcontracted construction projects;
2.The ratio of labor for logging business shall be determined and publicly notified by the Minister of Employment and Labor based on the share, etc. of the total remuneration calculated by aggregating each of the total remunerations paid to employees by individual business owners operating a logging business for the three years before June 30 of the base insurance year, in the total costs calculated by aggregating each of the costs spent by the same business owners for logging works; but such ratio of labor shall be determined based on the amount of remuneration paid for each unit logging volume.
(2) The method of determining an estimated total remuneration or the total remuneration based on the ratio of labor for construction projects shall be as follows:
1.The estimated total remuneration shall be the amount calculated by multiplying the total construction cost by the relevant ratio of labor: Provided, That where the estimated total remuneration calculated based on the ratio of labor exceeds 90/100 of the contract price, the estimated total remuneration shall be 90/100 of the contract price;
2.The total remuneration shall be the amount calculated by aggregating the total remuneration paid to employees directly employed for the relevant construction project, and the amount calculated by multiplying the sum of the subcontracted construction costs (excluding the subcontracted construction cost of a subcontractor who has obtained approval from COMWEL under the proviso to Article 9 (1) of the Act) by the ratio of labor for subcontracted construction projects. The method shall be specified by the following calculation formula:
Total remuneration = Total remuneration paid to employees directly employed for the relevant construction project + (Sum of subcontracted construction costs (excluding the subcontracted construction cost of a subcontractor who has obtained approval from COMWEL under the proviso to Article 9 (1) of the Act) x Ratio of labor for subcontracted construction projects}
(3) An estimated total remuneration or the total remuneration for logging business, shall be the amount calculated by multiplying the logging volume by the relevant ratio of labor.
[This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010]
Article 12 (Employment Insurance Premium Rates) (1) The employment insurance premium rates referred to in Article 14 (1) of the Act shall be as follows: <Amended by Presidential Decree No. 22807, Mar. 30, 2011; Presidential Decree No. 24650, Jun. 28, 2013; Presidential Decree No. 30084, Sep. 17, 2019>
1.Insurance premium rate for employment security and vocational skills development programs: The insurance premium rate classified as follows:
(a) A business operated by an owner whose regular workforce is less than 150: 25/10,000;
(b) A business operated by an owner whose regular workforce is at least 150, which falls within the scope of enterprises eligible for preferential support referred to in Article 12 of the Enforcement Decree of the Employment Insurance Act: 45/10,000;
(c) A business operated by an owner whose regular workforce is at least 150 but less than 1,000, which does not fall under item (b): 65/10,000;
(d) A business operated by an owner whose regular workforce is at least 1,000, which does not fall under item (b) or is directly operated by the State or a local government: 85/10,000;
2. Insurance premium rate for unemployment benefits: 16/1,000.
(2) For the purposes of paragraph (1) 1, the number of regular workforce shall be the number calculated by aggregating the number of regular workforce in all the businesses within the Republic of Korea operated by the relevant business owner: Provided, That in cases of a business managing multi-family housing defined in Article 2 (1) 1 (a) of the Multi-Family Housing Management Act, the number of regular workforce shall be calculated for each business. <Amended by Presidential Decree No. 27445, Aug. 11, 2016>
(3) For the purposes of paragraph (1) 1, the insurance premium rate for employment security and vocational skills development programs applicable to an original contractor, shall apply to a subcontractor who becomes a business owner subject to the Act under the proviso of Article 9 (1) of the Act: Provided, That where a subcontractor is deemed a business owner subject to the Act under the proviso of Article 9 (1) of the Act, in relation to individual businesses of a business owner who becomes subject to blanket application under Article 8 of the Act, the insurance premium rate for employment security and vocational skills development programs applicable to the business owner who is the subcontractor, shall apply.
(4) Where a business is transferred or businesses are merged during the insurance year, the insurance premium rate for employment security and vocational skills development programs applied before the transfer or merger, shall apply to the transferred or merged business only during the relevant insurance year , notwithstanding paragraphs (1) 1 and (2).
[This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010]
Article 13 (Public Notice of Industrial Accident Insurance Premium Rates) Where the Minister of Employment and Labor has determined an insurance premium rate (hereinafter referred to as "industrial accident insurance premium rate") for industrial accident compensation insurance (hereinafter referred to as "industrial accident insurance") pursuant to Article 14 (3) of the Act, he/she shall publicly notify the types of applicable businesses and the details thereof in the Official Gazette, a daily newspaper registered for nationwide circulation under Article 9 (1) of the Act on the Promotion of Newspapers, Etc., or any other media.
[This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010]
Article 14 (Application of Industrial Accident Insurance Premium Rates) (1) Where the same business owner operates at least two different types of businesses under Article 14 (3) of the Act at a single place, the industrial accident insurance premium rate applicable to the main business with the largest number of employees, the highest total remuneration, etc. (hereafter in this Article, referred to as "main business"), among the businesses, shall apply to all the businesses operated at such place.
(2) The main business referred to in paragraph (1) shall be determined in the following order:
1. A business with a large number of employees;
2. A business with a high total remuneration, if the number of employees is same or unascertainable;
3.A business which manufactures products with high sales or provides services, if it is impracticable to determine the main business under subparagraph 1 or 2.
[This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010]
Article 15 (Businesses Subject to Special Cases concerning Industrial Accident Insurance Premium Rates) (1) "Business prescribed by Presidential Decree" in Article 15 (2) of the Act means the following: <Amended by Presidential Decree No. 25587, Sep. 3, 2014; Presidential Decree No. 27051, Mar. 22, 2016; Presidential Decree No. 28505, Dec. 26, 2017>
1. A business subject to blanket application under Article 8 (1) or (2) of the Act, among construction businesses, for which the total construction cost for the insurance year two years preceding the relevant insurance year exceeds six billion won; and in such case, the total construction cost shall be the amount calculated by excluding the cost of construction executed by a subcontractor, who has obtained approval from COMWEL under the proviso of Article 9 (1) of the Act, from the construction cost reported pursuant to Article 11 (1) and (3) of the Act;
2.A business, other than a construction business and logging business, whose regular workforce is at least 30; and in such case, the number of regular workforce shall be calculated pursuant to Article 2 (1) 3 (a), based on a report filed under Article 16-10 (3) through (5) and (7) of the Act and a report and application filed under Article 125 (3) and (4) of the Industrial Accident Compensation Insurance Act, but the calculation period shall be from July 1 of the year preceding the base insurance year to June 30 of the base insurance year.
(2) Where a business owner fails to report under Article 11 (1) or (3) of the Act, Article 16-10 (3) through (5) and (7) of the Act, and Article 125 (3) of the Industrial Accident Compensation Insurance Act, or where matters are falsely reported, COMWEL may calculate the total construction cost or the number of regular workforce based on the facts, notwithstanding paragraph (1). <Amended by Presidential Decree No. 27051, Mar. 22, 2016>
(3) Where the type of business subject to the industrial accident insurance premium rate referred to in paragraph (1) changes during the three years before June 30 of the base insurance year, special cases concerning determination of an industrial accident insurance premium rate referred to in Article 15 (2) of the Act (hereinafter referred to as "individual performance rate") shall not apply to such business: Provided, That where the actual conditions of major works of the relevant business, such as machine equipment or working processes, are deemed unchanged even when the type of business has changed, the relevant individual performance rate shall apply to such business. <Amended by Presidential Decree No. 27051, Mar. 22, 2016>
(4) "Business prescribed by Presidential Decree" in Article 15 (3) of the Act means any of the following businesses whose regular workforce is less than 50: <Newly Inserted by Presidential Decree No. 25047, Dec. 30, 2013; Presidential Decree No. 29455, Dec. 31, 2018>
1. Manufacturing;
2. Forestry;
3.Sanitary and similar services among the types of business to which the industrial accident insurance premium rates determined under the former part of Article 14 (3) of the Act are applicable.
(5) The relevant insurance year applicable when the number of regular workforce is calculated under paragraph (4), shall be the insurance year for which industrial accident prevention activities referred to in Article 18-2 have been recognized. <Newly Inserted by Presidential Decree No. 25047, Dec. 30, 2013>
[This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010]
Article 16 (Insurance Balance Ratio to Apply Individual Performance Rates) "Case that constitutes the ratio prescribed by Presidential Decree" in Article 15 (2) of the Act means where the relevant ratio is more than 85/100 or not more than 75/100 .
[This Article Wholly Amended by Presidential Decree No. 22408, Sep. 29, 2010]
Article 17 (Computation of Insurance Balance Ratio to Apply Individual Performance Rates) (1) When the ratio of the amount of industrial accident insurance benefits to the insurance premiums for industrial accident insurance (hereinafter referred to as "industrial accident insurance premiums") is calculated pursuant to Article 15 (2) of the Act, the amount of the industrial accident insurance premiums shall be the aggregate of the following amounts as of June 30 of the base insurance year:
1. In cases of the base insurance year: The aggregate of the monthly insurance premiums referred to in Article 16-3 (1) of the Act (hereinafter referred to as "monthly insurance premiums") for the period from January to June (in cases of a business specified in Article 19-2, the equivalent of 1/2 of the estimated insurance premium referred to in Article 17 (1) of the Act (hereinafter referred to as "estimated insurance premiums"));
2. In cases of the two insurance years immediately preceding the base insurance year: The aggregate of the insurance premiums calculated pursuant to Article 16-9 (1) or (2) of the Act (hereinafter referred to as "settled insurance premiums") (in cases of a business specified in Article 19-2, the aggregate of the finalized insurance premiums referred to in Article 19 (1) of the Act (hereinafter referred to as "finalized insurance premiums"));
3.In cases of the insurance year three years preceding the base insurance year: The amount calculated based on the following calculation formula:
(Settled insurance premium or finalized insurance premium for the insurance year three years preceding the base insurance year x 6/ (The total number of months during which the relevant insurance relationship was maintained in the insurance year three years preceding the base insurance year)
(2) When the ratio of the amount of industrial accident insurance benefits to the industrial accident insurance premium is calculated pursuant to Article 15 (2) of the Act, the amount of industrial accident insurance benefits shall be the aggregate of the amounts of industrial accident insurance benefits for which a payment decision (referring to an encumbrance; hereinafter the same shall apply) was made from July 1 of the insurance year three years preceding the base insurance year to June 30 of the base insurance year. In such case, where the industrial accident insurance benefits decided to be paid are a disability compensation annuity or survivors' compensation annuity, the payment of the disability compensation annuity or survivors'
(3) When the aggregate of amounts of industrial accident insurance benefits is calculated under the former part of paragraph (2), none of the following amounts of insurance benefits shall be added: <Amended by Presidential Decree No. 23910, Jun. 29, 2012; Presidential Decree No. 27051, Mar. 22, 2016; Presidential Decree No. 29455, Dec. 31, 2018>
1.The amount of a vocational rehabilitation benefit referred to in Article 72 of the Industrial Accident Compensation Insurance Act;
2.The amount of an insurance benefit decided to be paid due to an accident caused by a third person's act referred to in Article 87 (1) of the Industrial Accident Compensation Insurance Act (excluding the amount of insurance benefits corresponding to the share for which a third person's negligent conduct has not been recognized in a conclusive court judgment, etc.);
3. The amount of an insurance benefit decided to be paid, for an occupational disease referred to in Article 37 (1) 2 of the Industrial Accident Compensation Insurance Act;
4.The amount of an insurance benefit decided to be paid, for an accident that occurred due to a natural disaster, power failure, or any other force majeure;
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