Health Insurance and Industrial Accident Insurance Premiums Reduced by Up to 50% for 3 Months... National Pension Deferral Expected

[Asia Economy Reporter Jang Sehee] The government is expected to temporarily reduce health insurance and industrial accident insurance premiums by up to 50% for low-income groups and small business owners for three months from next month through June. National pension and employment insurance premiums are expected to have their payment periods deferred.

According to government departments on the 29th, measures including this are expected to be announced at the 3rd Emergency Economic Meeting held this week.

Among the four major social insurances, the government has decided to reduce premiums by up to half for health insurance and industrial accident insurance for three months starting in April, and is currently coordinating how to set the reduction target as the lower percentage of payers based on payment amounts and how to determine the reduction amount within the 50% range.

For health insurance payers in the bottom 20% based on payment standards, premiums will be reduced by half for four months from March to May, and the same benefit will be extended to payers in the bottom 50% living in the special disaster areas designated as Daegu and Gyeongbuk Gyeongsan, Cheongdo, and Bonghwa.

It is known that the direction for national pension and employment insurance premiums has been set toward deferral instead of reduction.

According to the "2019~2060 National Pension Financial Outlook Report" published by the National Assembly Budget Office, the national pension fund is expected to increase to 1,430 trillion won by 2039, then start to decrease, and be depleted by 2054.

Regarding employment insurance, it appears that the financial conditions are unfavorable considering that the employment insurance fund recorded a deficit exceeding 1 trillion won last year and the reserve fund is below the legally required reserve ratio.