The industrial accident insurance premium rate will be frozen at 1.53% next year

Industrial accident insurance premiums paid by employers will be frozen next year.

On the 29th, the Ministry of Employment and Labor announced, “On the 30th, the standards for calculating the industrial accident insurance premium rate and the industrial accident insurance medical care benefit calculation standards for 2022 will be announced to maintain the industrial accident insurance premium rate at 1.53%.”

The industrial accident insurance premium rate is calculated and indicated by adding the ‘industrial accident insurance premium rate by business type’ and the ‘commuting accident rate’. It is decided by the Industrial Accident Compensation Insurance and Prevention Deliberation Committee, which consists of members of labor, management, and public interest.

The industrial accident insurance premium rate for next year is 1.53%, the same as this year. By business type, the industrial accident insurance premium rate is 1.43% and the commuting accident rate is 0.10%. The Ministry of Labor explained, “It is necessary to ease the burden of insurance premiums on companies and employees due to the COVID-19 outbreak.”

The criteria for recognition of medical care benefits will be expanded. New support will be provided for the oriental medical blood and vein blood test, which has not been recognized as medical care benefit under the Industrial Accident Compensation Insurance, and the fee for issuance of medical records borne by industrial accident workers. The subsidy for dental prosthetics has been increased, and the cost of purchasing a hearing aid, which was only paid in case of hearing impairment on both sides, is to be paid even if only one side is impaired.

It is questionable whether the premium rate freeze will continue. The amount of workers’ compensation insurance benefit expenditure increased from 5.529 trillion won in 2019 to 6.5 trillion won this year. Pension debt, which refers to the amount of pension benefit spending, increased from 41 trillion won in 2016 to 57 trillion won last year. The budget for the industrial accident prevention project also increased from 363.6 billion won in 2019 to 1.229 trillion won this year, and will further increase to 1.92 trillion won next year. The Ministry of Labor is planning to conduct research services to find an appropriate insurance premium level and ways to secure reserves in accordance with the increase in spending.

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