Pilot Operation of the Sickness Benefits Program Launched
- Regdate2022-07-11 14:45
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Pilot Operation of the Sickness Benefits Program Launched
상병수당 시범사업 본격 시작
PRESS RELEASE
Jul 4, 2022
The Ministry of Health and Welfare (MOHW) announced that the pilot operation of the sickness benefits program, designed to guarantee income for injured and ill workers, will begin on July 4 (Mon) in six regions of Jongno-gu, Seoul; Bucheon, Gyeonggi-do; Cheonan, Chungcheongnam-do; Pohang, Gyeongsangbuk-do; Changwon, Gyeongsangnam-do; and Suncheon, Jeollanam-do.
Sickness benefits are offered to workers incapable of engaging in economic activities due to non-occupational injury or illness to compensate their income and enable them to focus on treatment. Its main purpose is protecting workers against income loss and subsequent risk of poverty due to injury or illness, thus enhancing workers’ right to health. All OECD member countries but Korea and the USA (with the exception of some states) have such a program in place to serve as a significant social safety net.
Without statutory sick pay, only 46.4% of Korean workers (mainly employees of large corporations) are able to take sick leave. It is especially difficult for employees of small businesses or the self-employed to take time off work when they are sick, often because their livelihoods are at stake.
The COVID-19 pandemic highlighted social and economic problems which stem from the absence of sickness benefits program and statutory sick pay. Workers who hesitated to take time off work even when they were sick often inadvertently caused transmission of COVID-19 in the workplace. In response, the Labor-Management-Government Agreement to Overcome the COVID-19 Crisis was signed, opening social discussions to adopt sickness benefits in Korea.
The pilot operation of the program, which is an important first step towards the adoption of sickness benefits in Korea, is one of the Yoon Suk-yeol administration’s national projects..
Phase 1 of the pilot operation will be implemented for one year from July 4, 2022, and three different models will be applied to the six regions. These regions were selected through a public contest held in April.
MOHW and the National Health Insurance Service are leading the pilot operation with support from the local governments of the covered regions.
<Pilot Operation of the Sickness Benefits Program Phase 1>
∎Covered Locations: Bucheon, Gyeonggi-do, and Pohang, Gyeongsangbuk-do (Model 1); Jongno-gu, Seoul, and Cheonan, Chungcheongnam-do (Model 2); and Changwon, Gyeongsangnam-do, and Suncheon, Jeollanam-do (Model 3)
∎Eligibility
- (Place of Residence) Those residing in the locations covered by the program
- (Employment Type) Employees, economically dependent workers, the self-employed, etc., who fall under at least one of the following categories
① Employees subscribed to NHIS (subion status maintained over the previous 1 month or longer)
② Employment insurance subscribers, including economically dependent workers and platform workers (subion status maintained over the previous 1 month or longer)
③The self-employed (business maintained over the previous 3 months or longer + previous month’s sales recording at least KRW 1.91 million)
∎Other Conditions
- (Scope of Injury and Illness) Workers unable to work due to non-occupational injury or illness are entitled to apply for the allowance regardless of the type of injury or illness. Detailed conditions such as the waiting period vary by model.
| Category | Model 1 | Model 2 | Model 3 |
|---|---|---|---|
| Hospitalization | Unnecessary | Unnecessary | Hospitalization for 3 consecutive days or longer |
| Period of payment | Period of inability to work | Period of inability to work | Days of healthcare service use |
| Waiting period/Maximum period covered | 7 days / 90 days | 14 days / 120 days | 3 days / 90 days |
| Location | Bucheon, Pohang | Jongno-gu, Cheonan | Suncheon, Changwon |
- (Suspension of Labor) Injury and illness allowances are provided for the actual period of inability to work due to illness or injury. → Verification by the employer, income payer, etc., is needed.
∎ Details: KRW 43,960(60% of minimum wage) per day provided over the period of allowance eligibility (excluding the waiting period).
Findings from the pilot operation will contribute to lively public discussions on designing a sickness benefits program suited for Korea. The pilot will take place for the next three years, and the program is to be adopted nationally in 2025.
Director General of Bureau of Health Insurance Policy, Choi Jong-kyun, said, “The pilot operation of the sickness benefits program is an important first step in building a society that allows workers to take sufficient rest when injured or ill.
Choi added, “In order to ensure the success of the pilot operation, the participation and support of local residents, businesses, and healthcare providers are essential. The government will be all ears to diverse voices during the pilot operation and make thorough preparations to design the sickness benefits program adequate to Korea.”
//For Inquiries contact Media Relations, Ministry of Health and Welfare
044-202-2047 or fairytale@korea.kr
http://www.mohw.go.kr/react/al/sal0301vw.jsp?PAR_MENU_ID=04&MENU_ID=0403&page=2&CONT_SEQ=372015
(7.4) Pilot Operation of the Injury and Illness Allowance Program to Be Launched_(최종).hwp
(7.4) Pilot Operation of the Injury and Illness Allowance Program to Be Launched_(최종).pdf