Oct. 27, 2017
On October 27th (Fri.) the Ministry of Employment and Labor (MOEL) preliminarily announced an amendment to the Enforcement Decree of the Employment Insurance Act which would raise the maximum daily amount of unemployment benefits by 10,000 won from 50,000 won this year to 60,000 won in 2018.
On October 20th (Fri.) the Ministry set the maximum daily amount of unemployment benefits for 2018 at 60,000 won after deliberation by the Employment Insurance Committee (chairperson: Vice Minister of Employment and Labor) so that jobless people can concentrate on job-search activities without suffering from livelihood insecurity.
Thanks to the increase in the maximum daily amount, jobless people will be able to receive a maximum of 1.8 million won a month in unemployment benefits in 2018. It is 300,000 won higher than this year's maximum monthly unemployment benefit rate of 1.5 million won.
* Currently, unemployment benefits are paid at a daily rate equivalent to 50% of the average daily wage the unemployed person earned at his/her last job before he/she became unemployed but not exceeding 50,000 won, which works out at 1.5 million won a month (30 days in a month).
As of the end of September 2017, unemployment benefit recipients numbered about 1,005,000, and the total unemployment benefits paid amounted to 3.9 trillion won. The higher maximum daily amount will apply to those losing their jobs on or after January 1st 2018, and over 89,000 jobless people are expected to benefit from it.
Deputy Minister for Employment Policy Lim Seo-jeong said, "The increase in the maximum daily amount of unemployment benefits is the largest since the introduction of the employment insurance system in 1995. The higher maximum daily amount would reduce jobless people's livelihood burden and thereby help them engage in job-search activities in a more stable manner."