Daily workers will also pay health insurance premiums if they earn more than 20 million won a year... Contribution system to be revised

[Financial News] The government is pushing to impose health insurance premiums on daily labor income that exceeds 20 million won a year. Until now, daily labor income was effectively exempt from premiums because it was considered income earned by vulnerable groups. But as employment patterns have changed, including a rise in short-term contracts for highly skilled workers, the government has decided to overhaul the contribution system.
According to industry sources on the 25th, the Ministry of Health and Welfare (MOHW) reportedly briefed a subcommittee of the National Health Insurance Policy Deliberation Committee on the 23rd about a plan to revise the health insurance premium system.
The revision is intended to improve fairness in premium burdens between workplace subscribers and regional subscribers, while also ensuring the sustainability of the health insurance fund.
Under the proposal, daily labor income above 20 million won a year would be subject to health insurance premiums based on 50% of the income.
Of the 5,282,568 daily workers reported to the National Tax Service in 2024, about 5.2% earned more than 20 million won a year.
By bracket, 144,761 people, or 2.7%, earned between 20 million won and 30 million won. Another 67,288 people, or 1.3%, earned between 30 million won and 40 million won, while 33,237 people, or 0.6%, earned between 40 million won and 50 million won. Those earning more than 50 million won totaled 29,969, or 0.6%. By contrast, 5,007,313 people with annual income of 20 million won or less would be excluded from the premium base. Of them, 87.2% earned 10 million won or less, and 7.6% earned between 10 million won and 20 million won.
The revision is expected to affect 55,000 workplace subscribers, or 0.3%, and 170,000 regional households, or 1.8%. The number of people expected to lose dependent status and begin paying premiums is estimated at 49,000, or 0.3%.
The government expects the reform to increase health insurance revenue by 265.8 billion won a year. Under current law, daily labor income is included among income sources subject to health insurance premiums, but premiums have not been effectively imposed until now.
As a result, some high-income daily workers have paid only the minimum premium or retained dependent status. In one case, a construction daily worker in 2024 earned 140 million won from daily labor income over 230 workdays, with a daily wage of 600,000 won, and was registered as a dependent. In another case, a worker earned 110 million won over 285 workdays, with a daily wage of 400,000 won, yet paid only the minimum premium as a regional subscriber.
The Ministry of Health and Welfare plans to reflect the revision by amending the Enforcement Decree and Enforcement Rules of the National Health Insurance Act.
[email protected] Park Ji-yeon Reporter