Daily Wage Income Over 20 Million Won Per Year to Be Subject to National Health Insurance Premiums

50% of Daily Wage Income Exceeding 20 Million Won to Be Counted
Annual National Health Insurance Revenue Expected to Increase by 265.8 Billion Won

The government is moving forward with plans to impose National Health Insurance premiums on daily wage income exceeding 20 million won per year. Until now, daily wage income has been considered a source of income for vulnerable groups, and insurance premiums have not been routinely charged. However, the increasing number of high-income daily wage earners—due to factors such as highly skilled workers signing short-term contracts—has prompted the push for revising the contribution system.

Seoul Yeongdeungpo-gu National Health Insurance Service Yeongdeungpo Nambu Branch. Yonhap News Agency

According to sources in the healthcare sector on July 25, the Ministry of Health and Welfare reported a proposal to revise the National Health Insurance premium contribution system to a subcommittee of the Health Insurance Policy Deliberation Committee on July 23. This reform is being promoted to enhance fairness and equity between employee subscribers and local subscribers and to establish a sustainable financial foundation.

Under the proposed revision, for daily wage income exceeding 20 million won per year, the National Health Insurance premium will be levied by reflecting only 50% of the income amount.

Among the 5,282,568 daily wage earners reported to the National Tax Service in 2024, approximately 5.2% have earned more than 20 million won per year.

By income bracket: 144,761 people (2.7%) earned between more than 20 million won and up to 30 million won; 67,288 people (1.3%) earned between more than 30 million won and up to 40 million won; 33,237 people (0.6%) earned between more than 40 million won and up to 50 million won; and 29,969 people (0.6%) earned more than 50 million won. Those with income of 20 million won or less—5,007,313 people (of whom 87.2% earned 10 million won or less, and 7.6% earned more than 10 million won and up to 20 million won)—will be excluded from the new premium requirement.

As a result of this measure, 55,000 employee subscribers (0.3%) and 170,000 local subscriber households (1.8%) will be affected. Additionally, it is estimated that 49,000 people (0.3%) will lose their dependent status and newly become premium payers.

The government expects this change to increase National Health Insurance revenue by approximately 265.8 billion won per year.

Although current law deems daily wage income subject to health insurance contributions, premiums have in practice not been collected until now.

This has led to cases where high-income daily earners have paid only the minimum insurance premium or have registered as dependents and enjoyed benefits.

For example, in 2024, Person A earned 140 million won from daily wage construction work (230 days, 600,000 won per day) while registered as a dependent, and Person B earned 110 million won (285 days, 400,000 won per day) but only paid the minimum premium as a local subscriber.

There have also been concerns raised about foreign workers in Korea earning nearly 10 trillion won per year in daily wage income but being exempt from National Health Insurance premiums.

Regarding this matter, the Ministry of Health and Welfare intends to pursue revisions of the Enforcement Decree and Enforcement Regulations of the National Health Insurance Act.

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