Employment Insurance Reform 2025 Key Changes at a Glance

why employment insurance reform is needed

the government has revised the Employment Insurance Act and the Employment and Workers' Compensation Insurance Premium Collection Act, which will significantly change the employment insurance system. the key goal of the reform is to eliminate employment insurance blind spots.

in the past, short-time workers and those in special employment often did not receive employment insurance benefits because the current system did not fully reflect the diversity of real-life work patterns. With this reform, more workers will be protected by employment insurance.

key changes to the employment insurance coverage criteria

shifting from hours worked to actual compensation

currently, the standard for employment insurance coverage is a 15-hour workweek, but in practice, it has often been difficult to accurately determine the number of hours worked. This has made it difficult to detect lapses in employment insurance coverage and prevented workers who need protection from receiving benefits.

to solve this problem, the government has decided to determine employment insurance enrollment based on actual compensation instead of hours worked. Once the system is based on workers' income, it will be easier to find those who have not enrolled through a computerized search of National Tax Service income data.

combining income from multiple workplaces

another important change in this reform is the application of multi-employment insurance, which is good news for those who work in the gig economy.

even if your income from each workplace is below the threshold individually, you will be eligible for employment insurance if your combined income exceeds the threshold. this means that more workers will be covered by the safety net.

changes to premium collection thresholds

eliminating the burden of double filing

previously, employers were required to report their employees' total compensation for the previous year to the Labor and Welfare Agency separately from their national tax return, making it cumbersome to report the same information twice.

the government will abolish this reporting obligation and switch to the National Tax Service income-based premium system. employment insurance premiums will be automatically charged based on the income information reported by employers to the National Tax Service, which will greatly reduce administrative burdens.

reorganized job search benefit calculation criteria

expanded base period for greater stability

another change to unemployment compensation is that it will now be calculated based on the average wage for the three months prior to the date of separation from employment.

the longer base period (from three months to a year) means that you're less likely to be affected by short-term income fluctuations - for example, if your workload decreased in the months leading up to your separation, you'll still receive a more stable benefit because it's calculated on an annualized average.

frequently asked questions

Q1. When does the change to the employment insurance coverage criteria come into effect?

A1. The specific implementation schedule will be finalized after the amendments to the Employment Insurance Act and the Employment Accident Insurance Premium Collection Act are passed. as the changes to the Employment Insurance Act 2025 are expected to be applied sequentially, please check the relevant notices.

Q2. How do I pay premiums if I work at multiple workplaces?

A2. If you are covered by the combined income employment insurance, you will be charged a proportional premium based on your income at each workplace. each employer will pay the premium for their share of the income.

Q3. Are special employment positions covered by employment insurance?

A3. Yes, employment insurance coverage is being expanded for specially employed workers. With the transition to the actual remuneration standard, various types of workers, such as platform workers, will be able to receive employment insurance protection.

Q4. Will the change in the calculation criteria for job search benefits affect the amount I receive?

A4. It depends on your personal situation. Since the average income for a year is used as the standard, it reflects the long-term income level rather than short-term income fluctuations, resulting in a generally stable benefit calculation.

conclusion

with the reform of employment insurance, the eligibility criteria has been changed from hours worked to actual compensation, and the period for calculating job search benefits has been expanded, allowing more workers to receive stable protection.

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