Starting Tomorrow, Artists Also Covered by Employment Insurance... Receive Unemployment Benefits After 9 Months of Contributions

Cultural and Artistic Service Contracts Require Monthly Income of at Least 500,000 Won
Unemployment Benefits Provided Even if Job Change Due to Income Reduction
Employers Must Report Employment Insurance... Insurance Premiums Shared Equally

Asia Economy DB=Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kim Bo-kyung] Starting tomorrow (the 10th), employment insurance will be applied not only to general workers but also to artists. Artists who pay insurance premiums for a certain period will be able to receive unemployment benefits (job-seeking benefits) and maternity benefits.

The Ministry of Employment and Labor announced that the law applying employment insurance to artists will be enforced from the 10th.

Artists eligible for employment insurance are those who enter into contracts related to cultural and artistic services under the 'Artist Welfare Act' and personally provide labor. Employment insurance applies if the average monthly income earned through contracts is 500,000 KRW or more.

If an artist enters into two or more small contracts and the combined average monthly income is 500,000 KRW or more, employment insurance can also be applied upon the artist's request. However, short-term artists who have contracts for cultural and artistic services lasting less than one month are covered regardless of income.

Artists who have paid insurance premiums for at least 9 months out of the 24 months prior to their job separation and actively seek reemployment without disqualifying reasons can receive job-seeking benefits for 120 to 270 days. Considering the characteristics of artists, job-seeking benefits will also be paid if the artist leaves work due to income reduction as defined by presidential decree and actively strives for reemployment.

Pregnant artists who have paid insurance premiums for at least 3 months before the expected delivery date and do not provide labor around the delivery period can receive maternity benefits for 90 days (120 days in the case of multiple births).

Employers who have contracts with artists must report the acquisition of the artist's insured status to the Korea Workers' Compensation and Welfare Service by the 15th of the month following the day labor was provided. If the workplace has no employees and is not registered for employment insurance, the employer must also report employment insurance registration within 14 days from the first day labor was provided by the artist.

Employment insurance premiums are calculated by multiplying the artist's remuneration by the unemployment insurance premium rate (1.6%), with the artist and employer each bearing half of the cost.

Employers must withhold the employment insurance premiums that artists are responsible for and pay them to the Service. Low-income artists in small-scale businesses can receive 80% support for employment insurance premiums through the Durunuri program. A budget of 9.7 billion KRW will be invested next year to support 35,000 artists.

If it is unclear whether cultural and artistic services are involved or if there is no related written contract during the employment insurance application process, the matter will be handled through cooperation between the Korea Workers' Compensation and Welfare Service and the Artist Welfare Foundation.

The Service will operate a 'Concentrated Reporting Period for Employment Insurance Application and Insured Status' for three months starting from the 10th. Distribution of guidance materials and holding explanatory meetings are also planned within this month.

Minister of Employment and Labor Lee Jae-gap stated, "As the artist employment insurance marks the first step toward nationwide employment insurance, we will continue to expand the employment safety net based on this."