The National Health Insurance Service (NHIS) has announced an increase in NHI contributions due to rising healthcare costs associated with an aging population and benefit expansion.
Starting from January 2023, the NHI contribution rate in South Korea will be increased by 1.49%. Under this change, the NHI rate for corporate employees will be increased from the current rate of 6.99% to 7.09%. This increase is a continuation of the increase made in 2021 at a rate of 4.38%.
The insurance amount is calculated on the basis of the monthly salary paid, with the employer and the employee sharing the payment equally, 3.545% each. Please note that for private school staff and teachers, the staff and teachers will pay 3.545%, while the insurance amount paid by the employer will be 2.127% and by the government 1.418%.
Please check the table below:
| Total | Employee Insured | Employer | Government | |
|---|---|---|---|---|
| Employee | 7.09 (100%) | 3.545% (50%) | 3.545% (50%) | - |
| Public Officer | 7.09 (100%) | 3.545% (50%) | - | 3.545% (50%) |
| Private School Staff & Teachers | 7.09 (100%) | 3.545% (50%) | 2.127% (30%) | 1.418% (20%) |
Another component of the national health insurance called Long Term Care Insurance (LTCI) also rose from a rate of 12.27% in 2022 to a rate of 12.81% in 2023. The calculation of it also changed as shown below:
| NHI Contribution (7.09%) X | LTCI contribution rate (0.9082%) |
| NHI contribution rate (7.09%) |
LTCI contribution rate = LTCI contribution rate (12.81%) X NHI contribution rate (7.09%)
Affected services: Payroll Service in Korea, Employer of Record in Korea
