Vulnerable Day Laborers Hit by Construction Slump... Retirement Allowance Contributions Down by 190,000

2025 Annual Report from the Construction Workers' Retirement Allowance Association

Last year, the number of construction workers who contributed to the Construction Workers’ Retirement Allowance Mutual Aid Association dropped by more than 10% compared to the previous year. Since the eligibility for membership was expanded in 2020, this is the lowest level recorded, indicating a significant decrease in day laborer jobs, who are considered a vulnerable group even within construction sites.

According to the 2025 annual report recently published by the association, the number of workers who contributed to the retirement allowance last year was 1,492,254. This is a decrease of about 190,000 compared to 1,680,365 in 2024. After recording more than 1.74 million in 2023, the figure has declined for two consecutive years. The total number of days contributed last year was 134,484, representing a decrease of approximately 17% over the same period.

An apartment construction site in Seongbuk-gu, Seoul. Photo by Yonhap News

The retirement allowance system targets day laborers and temporary construction workers whose contracts are less than one year. Construction business owners pay the contributions during the course of a project. For public projects exceeding 100 million won and private projects exceeding 5 billion won, employers calculate and pay monthly contributions according to workers’ days worked. For day laborers, it functions as severance pay. Since 2020, the scope of compulsory coverage for workplaces has expanded, but last year’s number of contributing workers was the lowest since then.

The decline in retirement allowance contributions means there are fewer day and temporary workers, suggesting that the livelihood crisis among vulnerable construction workers has intensified. Direct blows have been dealt as many new construction sites failed to materialize or existing sites could not operate properly due to higher construction costs caused by high interest rates and both domestic and international issues, as well as stagnation in the real estate market.

Last year, 324,709 workers received retirement allowance disbursements from the association, totaling 940.3 billion won. Compared to the previous year, the number of recipients fell by 1.4%, while the total payment amount increased by 8.3%. The number of contributing workplaces last year was 72,988, and the amount contributed totaled 822.7 billion won.

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