Seoul City to Fully Cover 290,000 KRW Social Insurance Fees for Construction Day Laborers

Must Work at City-Commissioned Sites for Over 8 Days
Targeting Youth Under 39 and Low-Wage Workers
Full Support Is the Nation's First

Youth and low-wage daily workers employed at public construction sites commissioned by the Seoul Metropolitan Government will receive full support for social insurance premiums.

Seoul announced on the 22nd that it has been providing full support for social insurance premiums, including the National Pension and Health Insurance, starting this month. This full support is the first of its kind nationwide.

Support for Daily Construction Workers on Seoul City Public Projects

On the 1st, when the daytime high temperature in Seoul was forecasted to rise close to 40 degrees Celsius, a worker at a construction site in Jung-gu, Seoul, took a break to quench his thirst. Photo by Jinhyung Kang aymsdream@

Since July 2021, the city has supported up to 80% of the social insurance self-payment portion based on age, wage, and number of working days. From this year, both the support amount and eligible recipients have been expanded.

The support targets domestic workers aged 39 or younger who have worked at least 8 days per month at public construction sites commissioned by the city with a project cost of 50 million KRW or more, and who earn less than 2.39 million KRW per month. The youth age criterion has been expanded from 34 to 39 years old, and the low-wage standard will be set annually linked to the Seoul Living Wage. Seoul stated, "Due to the avoidance of construction work by the youth and the increase of unskilled foreign workers, there is concern about the collapse of the construction industry's production base, so the support targets have been set accordingly."

The reason the city expanded social insurance premium support for daily construction workers is that their social insurance enrollment rate is lower compared to other industries. To enroll in social insurance, workers must pay about 8% of the premium themselves. A daily worker earning 3.65 million KRW per month must pay a total of 294,000 KRW in social insurance premiums. Daily construction workers generally do not enroll because their average number of working days is shorter than the average for all industries and their income is irregular.

About 4,800 Daily Construction Workers to Benefit

The city provides full support by reimbursing construction companies after they settle social insurance premiums. Support is only available if the construction site uses Seoul City's standard contract for daily construction workers, adopts the electronic card system (a system that manages workers' labor history by installing card terminals for clocking in and out), and complies with the Seoul Construction Information Management System.

Seoul expects that this expanded support will benefit a total of about 4,800 youth and low-wage workers annually. Furthermore, by expanding support, the city plans to continuously encourage the influx of youth into construction sites and promote long-term employment. Lim Chun-geun, Director of Construction Technology Policy at Seoul City, said, "We will continue to accompany the vulnerable in construction so that construction jobs can guarantee workers' employment and be recognized as skilled professions."