"Why Did My Pay Decrease?"... April Health Insurance Adjustment Brings Mixed Fortunes for Salaried Workers

Adjustment Based on Previous Year's Income
Additional Payment for Increased Earnings, Refund for Decreased Salaries

Salaried workers are expected to see mixed results in their April paychecks. As the results of the year-end settlement for health insurance premiums are reflected, some employees will face additional premiums, while others will receive refunds, leading to differences in actual take-home pay.

National Health Insurance Service

According to the National Health Insurance Service on March 30, health insurance premiums are initially charged based on the salary from two years prior, not the current year. Then, in April of the following year, the premiums are adjusted to reflect actual income. As a result, employees whose income has increased—due to promotions, higher pay grades, or performance bonuses—will be required to pay additional premiums. In contrast, those whose income has decreased—because of economic downturns or salary reductions—will receive a refund of a portion of their previous payments. No adjustments are made for those whose income has not changed.

The National Health Insurance Service's "2024 Health Insurance Premium Settlement Results" shows that out of 16.56 million eligible people, 10.3 million paid an additional average of 203,555 won. Meanwhile, 3.53 million people whose salaries decreased received an average refund of 117,181 won, and 2.73 million, whose income did not change, were excluded from the settlement.

The number of people required to pay additional premiums, as well as the total amount, has been increasing each year. This is interpreted as a result of the general rise in employee wages.

If the additional premium exceeds one month's insurance premium, payments can be made in up to 12 installments. This installment payment program is designed for those who find it difficult to pay a large additional amount at once. In contrast, those eligible for refunds will have the amount automatically deducted from their April insurance premium, without the need for a separate application.

This year, administrative procedures have also been streamlined. Previously, workplaces had to report the total amount of wages separately, but starting this year, an automatic settlement method linked to data from the National Tax Service has been introduced, which is expected to reduce administrative burdens and minimize errors. However, workplaces that have not submitted data to the National Tax Service or do not wish to use automatic settlement must apply separately.

This content was produced with the assistance of AI translation services.