60% of Office Workers Pay 200,000 Won More for Health Insurance Premiums

NHIS, 2021 Health Insurance Premium Settlement ... 9.65 Million People with Salary Increase to Pay Additional Fees

As social distancing measures, including restrictions on private gatherings and business hours, were fully lifted, citizens hurried on their way to work at Gwanghwamun Station in the Seoul subway on the 18th, returning to pre-COVID-19 daily life. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Jo In-kyung] This year, three out of five office workers will have to pay an additional average health insurance premium of 200,000 KRW per person.

The National Health Insurance Service announced on the 22nd that the 2021 health insurance premium settlement, reflecting changes in wages, will be billed along with the April premiums for workplace subscribers.

The Service finalized the settlement amounts reflecting the 2021 wage changes of workplace subscribers and notified each workplace on the 18th.

As a result, 3.1 million people whose wages decreased will receive an average refund of about 88,000 KRW per person, while 9.65 million people whose wages increased will pay an additional average of about 200,000 KRW per person (20,000 KRW per month based on 10 installments). The 2.84 million people who accurately reported their wages do not require separate settlement.

The 9.65 million subscribers who must pay additional settlement premiums will pay the difference between the premiums calculated based on the previous year's increased wages through the year-end settlement this year.

The total settlement amount for 15.59 million workplace subscribers in 2021 was 3.3254 trillion KRW, an increase of 54.7% compared to the previous year. The average settlement premium per person was 213,352 KRW, up 50.7% (71,840 KRW) from 141,512 KRW last year.

The settlement premiums can also be paid in 10 installments. Considering the economic situation due to the COVID-19 pandemic, this year, as in the previous year, the number of installment payments has been expanded to up to 10 times to ease the burden on subscribers. Subscribers who wish to pay in a lump sum or change the number of installments can apply through their employer (company) by the 10th of next month, and payment can be made in the desired number of installments within 10 times or as a lump sum.

The National Health Insurance Service explained, "If wages change due to wage increases or seniority promotions, the workplace must immediately report the subscriber's wage changes to reduce the settlement premium," and added, "The year-end settlement is to pay the amount that should have been paid last year based on actual wages, so it does not mean the premium is increasing, but is due to unexpected wage occurrences such as bonuses."