special type workers, platform workers, freelancers, and self-employed people, do not have
a system to compensate for the decrease in income due to injuries and illnesses. Platform
workers and small business owners cannot rest because the platform workers often decide
the conditions for providing labor to the other party or the platform operators, and small
business owners with low income lose all income during the period when they take a break
from work.
Sickness allowance refers to a social system that guarantees a certain amount of income so
the workers can focus on treatment while sick without worrying about income.570) Article 50
of the current ‘National Health Insurance Act’571) has a provision to serve as the basis for the
sickness allowance, but there is no related provisions in the Enforcement Decree, yet. In Jul.
2020, the government announced that it would introduce a Korean-style sickness allowance
system by 2025, through research and pilot projects under the “Korean New Deal
Comprehensive Plan.”572) Accordingly, the first phase sickness allowance pilot project will
be implemented in 6 cities and districts, including Jongno-gu in Seoul and Bucheon in
Gyeonggi-do, from Jul. 2022 to Jul. 2023.
The target of sickness allowance is employed persons between the ages of 15 and 65 living
in the pilot project area, and if sickness allowance is recognized, 43,960 KRW573) per day is
paid. Benefits began to be paid to those eligible in the pilot area from August,574) and as of
Sep. 14, a total of 996 people applied for the sickness allowance, and an average of 546,000
won (average 12.3 days) of sickness allowance was paid to 240 people. The Ministry of
Health and Welfare announced that in the future it would promote system improvements,
such as easing the requirements for submitting documents for special employed workers and
self-employed persons, or streamlining the application process, by combining the information
derived through the pilot project.575)
570) National Health Insurance Service Homepage, see policy center insurance benefits and illness allowances system
571) National Health Insurance Act Article 50 (Additional Benefits) In addition to the health care benefits prescribed in
this Act, the NHIS may provide benefits for medical expenses for pregnancy and childbirth, funeral costs, sickness
allowances, and other allowances, as prescribed by Presidential Decree.
572) Ahead of the 20th presidential election held in March 2022, each candidate announced the introduction of sickness
allowance as a pledge, and the content is also included in the 110 national tasks of the current government.
573) As of 2022, 60% of the minimum wage (9,160 KRW) × 8 Hours
574) Ministry of Health and Welfare Press Release, Aug. 3, 2022.
575) Ministry of Health and Welfare Press Release, Sep. 16, 2022.
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