This report details the South Korean Ministry of Employment and Labor's draft amendment to shift employment insurance eligibility criteria from hours to income-based standards.
The core of the amendment shifts employment insurance eligibility criteria from 'labor hours' to 'income/compensation.' Specifically, it will use 'earned income under the income tax law minus non-taxable income' as the standard, utilizing National Tax Service income data to simplify verification procedures. This could potentially extend coverage to 1.742 million short-time workers currently working less than 15 hours per week.
For workers with multiple employers, if their combined income exceeds certain thresholds, they can voluntarily join employment insurance upon application. Specific income thresholds will be determined in future enforcement decrees. This reform will make it easier for freelancers, platform workers, and others in diverse employment arrangements where verifying work hours is difficult to access insurance coverage.
The draft is currently in a 40-day legislative notice period and is scheduled for National Assembly submission in October 2025. Benefits include simplified administrative procedures for employers and expanded social insurance coverage for workers.
The report evaluates this reform as a significant policy shift to provide social safety nets for all workers in Korea's changing labor market, representing a meaningful step toward modernizing the employment insurance system.