Calculation of National Health Insurance Premiums
Calculation of Monthly Premiums- The monthly premium payable by an employer-sponsored insurance subscriber is calculated as follows (PArticle 69 of the National Health Insurance Act).
1. Premium based on monthly remuneration: Monthly remuneration X Premium rate
① Monthly remuneration
· The amount of monthly remuneration of the insured person shall be calculated based on the amount of remuneration received by each of insured employee (Article 70(1) of the National Health Insurance Act).
· The insurance premium based on monthly remuneration payable by an employer-sponsored insurance subscriber who is not issued all or part of the remuneration due to leave or another reason is calculated based on the monthly remuneration for the month preceding the one in which the reason for non-issuance of remuneration occurred (Article 70(2) of the National Health Insurance Act).
② Premium rates
· The premium rate shall be 709/10,000 (Article73(1) of the National Health Insurance Act and Article 44(1) of the EnforcementDecree of the National Health Insurance Act).
· The insurance premium rates for the insured employees working overseas shall be 50/100 of the insurance premium rates stated above (Article 73(2) of the National Health Insurance Act).
※ Definition of Remuneration
- "Remuneration" refers to money and goods (compensation of actual expenses excluded) received from a user or a central or local government in return for labor provided by workers, etc, such as a salary, wage, remuneration, annual allowance, and bonus, and is distinct from the following (the former part of Paragraph 3 of Article 70 of the National Health Insurance Act and Paragraph 1 of Article 33 of the Enforcement Decree of the National Health Insurance Act).
· Retirement pay
· Prize money and translation/manuscript fees
· Tafree income as specified by the Income Tax Act (tafree income specified by Item j·m and o of Subparagraph 3 of Article 12 of the Income Tax Act excluded)
- If there is no proof of remuneration, if the proof of remuneration is unclear, or if the National Health Insurance Service recognizes the proof of remuneration to be unreliable when taking into account the minimum wage and other relevant factors, the value indicated by the Standards of Insurance Premium Calculation for Workers Without Proof of Remuneration shall be used (the latter part of Paragraph 3 of Article 70 of the National Health Insurance Act and Paragraph 2 of Article 33 of the Enforcement Decree of the National Health Insurance Act).
2. Premium based on monthly remuneration: Monthly remuneration X Premium rate
① Monthly remuneration
· If the income of the insured employee, excluding the amount of remuneration included in the calculation of the amount of monthly remuneration (hereinafter referred to as "extra income other than remuneration"), exceeds KRW 20 million annually, the amount of monthly income shall be calculated according to the following formula (Article 71(1) of the National Health Insurance Act and Article 41(4) of the Enforcement Decree of the National Health Insurance Act:
√ (Annual extra income other than remuneration ― KRW 20 million) x 1/12
※ However, suppose the income of the insured employee under Article 14, paragraph 3, subparagraph 6 of the Income Tax Act, excluding non-taxable income, is less than KRW 10 million in total. In this case, the corresponding interest income and income from dividends are not included in the calculation (conditions excluding each subparagraph in Article 41, paragraph 1 of the Enforcement Decree of the National Health Insurance Act, and conditions excluding each subparagraph in Article 44, paragraph 1 of the Enforcement Rule of the National Health Insurance Act).
② Premium rates
· The premium rate shall be 709/10,000 (Article73(1) of the National Health Insurance Act and Article 44(1) of the EnforcementDecree of the National Health Insurance Act).
· The insurance premium rates for insured employees working overseas shall be 50/100 of the insurance premium rates stated above (Article 73(2) of the National Health Insurance Act).
Upper and lower limits of monthly insurance premiums- The upper and lower limits of monthly insurance premiums shall be as follows (Article 69(6) of the National Health Insurance Act, Article 32 of the Enforcement Decree of the National Health Insurance Act and Articles 2 and 3 of the Notification of upper and lower limits of monthly health insurance premium).
1. Upper limit
· Monthly remuneration insurance fee: KRW 7,822,560
· Monthly income insurance fee: KRW 3,911,280
2. Lower limit
· Monthly remuneration insurance fee: KRW 19,780
Period of Premium Collection- Premiums are collected from the month after the month in which the status of an employer-sponsored insurance subscriber is acquired to the month that includes the day preceding the day on which the status is lost. If the status is acquired on the first of a month or if a person eligible for medical protection such as those of merit acquires the insurance subscriber status by applying for coverage by the national health insurance (Item A of Subparagraph 2 of Article 5(1) of the National Health Insurance Act), premiums are collected starting in the following month (Article 69(2) of the National Health Insurance Act).