"Even if you receive the least, it exceeds 1,980,000 won per month"... Unemployment benefit minimum exceeds maximum

[Financial News] The minimum amount of job-seeking benefits (unemployment benefits) paid to involuntarily unemployed people will be 1,981,440 won per month next year, exceeding the current legal maximum. The 2026 minimum wage will increase by 2.9% compared to this year, reversing the maximum and minimum unemployment benefits.

On the 11th, according to the Ministry of Employment and Labor, the minimum unemployment benefit for 2026 is set at 8,256 won per hour, with a daily payment (based on 8 hours of work) of 66,048 won, and a monthly payment (based on 30 days) of 1,981,440 won. This is because next year's minimum wage has been set at 10,320 won per hour, a 2.9% increase from this year. According to the Employment Insurance Act, the minimum unemployment benefit is set at 80% of the minimum wage.

Next year's minimum unemployment benefit will exceed the maximum for the first time in 10 years since 2016. The current maximum unemployment benefit is a daily payment of 66,000 won and a monthly payment of 1,980,000 won. This year, the minimum is slightly lower at 64,192 won per day and 1,925,760 won per month, but next year it will be 48 won more per day and 55,680 won more per month. The minimum becomes the maximum.

The Ministry of Employment and Labor is expected to pay the same benefits to all those who meet the conditions for unemployment benefits, based on the minimum that becomes the maximum.

However, there have been criticisms that it encourages moral hazard. Unemployment benefits are not subject to the four major insurance premiums and taxes. In a situation where unemployment benefits are already higher than the net amount received for working at the minimum wage, the gap is expected to widen next year, leading to criticism that the high minimum unemployment benefit reduces work motivation.


gaa1003@fnnews.com An Gaeul Reporter