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Tax Info at a Glance

home Tax Info at a Glance
Subject
Payroll_4SocialInsurance    4 major social insurance for staff at a restaurant
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Date
2023-08-08
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Hello,
I’m running a small-sized restaurant.
When told that they need to enroll in the 4 major insurances, the restaurant employees refuse to work, stating that they won't work if they have to. We are inevitably reporting them as daily laborers, but do daily laborers need to enroll in the 4 major insurances?
 
Answer
Daily laborers must subscribe to employment insurance and industrial accident insurance.
The “Employment History Verification Report” should be submitted to the Korea Workers’ Compensation & Welfare Service by 15th of the following month for a daily worker. If the report is not submitted by the 15th of the following month, a penalty of 30,000 won per person will be imposed. 
Short-term workers working less than 60 hours per month are only required to enroll in the industrial accident insurance out of the four major insurances. The regular working hours can be confirmed from the employment contract. In cases where confirmation is not possible, enrollment will be determined based on the actual working hours. 
Even if the monthly regular working hours are less than 60 hours, if the worker has been continuously employed for more than 3 months, they can choose to enroll in the National Pension if they wish. Additionally, for Employment Insurance, if the worker has been continuously employed for more than 3 months, enrollment becomes mandatory.
Daily laborers are not subject to the National Pension and Health Insurance. However, even for daily laborers, if the monthly workdays are 8 or more, they are eligible to enroll in both National Pension and Health Insurance. Additionally, National Pension enrollment is required for those with a monthly income of 2.2 million won or more.
 
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