A Worker Earning 120 Million Won Monthly, Next Year's Personal Health Insurance Premium 4.24 Million Won per Month

Ministry of Health and Welfare Announces Revision of Health Insurance Premium Upper and Lower Limits
Monthly Premium to Increase by 330,000 Won Compared to This Year

A 'super high-income' health insurance employee subscriber who earns more than 120 million won per month solely from their 'salary' will have to pay a maximum monthly insurance premium of about 4.24 million won next year. This is an increase of 330,000 won per month compared to this year.

According to the revised 'Notice on the Upper and Lower Limits of Monthly Health Insurance Premiums' announced administratively by the Ministry of Health and Welfare on the 19th, the upper limit of the monthly wage-based insurance premium will increase from 7,822,560 won this year to 8,481,420 won next year, a rise of 658,860 won per month. The upper limit will be applied from January to December 2024.

The health insurance premium upper limit is adjusted to reflect socioeconomic changes such as wage increases, according to Article 32 of the Enforcement Decree of the National Health Insurance Act. It is linked annually to 30 times the average insurance premium of employees two years prior to the year the premium is imposed (15 times for regional subscribers), and adjusted slightly each year.

However, unlike taxes, health insurance is a social insurance system, so the upper limit is set to prevent premiums from rising indefinitely regardless of how high income or assets are.

Health Insurance Premiums for Employee Subscribers Divided into Wage-Based and Income-Based Premiums

The upper limit of the monthly income-based insurance premium will also increase this year from 3,911,280 KRW per month to 4,240,710 KRW per month. Converting 4,240,710 KRW to monthly income amounts to approximately 61.48 million KRW. This means earning more than 61.48 million KRW every month solely from additional income sources such as financial income or rental income, excluding salary. Annually, this amounts to 737.75 million KRW.
[Photo by Yonhap News]

Health insurance premiums for employee subscribers are divided into 'wage-based monthly insurance premiums' (wage premiums), which are levied on the monthly salary received from the company, and 'income-based monthly insurance premiums' (non-wage premiums), which are imposed on comprehensive taxable income (including interest, dividends, rental income, etc.).

Among these, the wage-based insurance premium upper limit of 8,481,420 won per month corresponds to a monthly salary of 119,625,106 won. The wage-based insurance premium is shared equally between the company and the subscriber. Therefore, the actual upper limit amount paid by the super high-income employee subscriber will increase from 3,911,280 won per month this year to 4,240,710 won per month next year. This is an increase of 329,430 won per month, resulting in an additional 3,953,160 won annually.

Such super high-income employees paying these premiums are typically owners of large or small and medium-sized enterprises earning tens or hundreds of billions of won annually, executives, professional CEOs, or chaebol heads.

The upper limit for income-based monthly insurance premiums will also rise from 3,911,280 won per month this year to 4,240,710 won per month next year. Converting 4,240,710 won to monthly income corresponds to about 61.48 million won. This means earning more than 61.48 million won per month solely from additional income sources such as financial income or rental income, excluding salary. Annually, this amounts to 737.75 million won.