Employment & Welfare

Employment & Welfare

EPS , NPS and Insurance Schemes in Korea

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Employment & Welfare

EPS , NPS and Insurance Schemes in Korea

The Employment Permit System (EPS) allows employers who have failed to hire native Korean workers to legally hire an adequate number of foreign workers. It is a system introduced by the Korean Government to introduce and manage foreign workers in Korea in an organised manner. The Korean Government commenced the EPS on 17 August 2004 with six countries, namely, Vietnam, the Philippines, Indonesia, Mongolia, Thailand and Sri Lanka. So far 16 countries have joined the EPS.

The EPS Implementing Agency in Sri Lanka is the Sri Lanka Bureau of Foreign Employment (SLBFE) under the Ministry of Foreign Employment. EPS allows the three industry segments of manufacturing, fishery and construction to hire Sri Lankan employees in Korea.

More Details:- https://www.eps.go.kr/ph/index.html

The National Pension Service

The National Pension Service is a Social Security System implemented by the Korean Government to ensure a stable livelihood by collecting contributions and paying pension benefits for the insured or their dependents, to provide income security in case of retirement, disability or loss of breadwinner.

Coverage-Like Korean nationals, foreigners aged between 18 and 59 who reside in Korea are subject to compulsory coverage of NPS.
Contribution-Workplace-based insured Persons like E-9 employees, must contribute 9% of their monthly income, and the contribution is equally shared by the employer (4.5%) and the employee (4.5 %).
Benefits-Foreign insured persons are entitled to an Old-age, Disability, or Survivor Pension. They will receive pension benefits according to the same standard as Korean nationals.
Benefit Claim-In the case of Old-age, Disability, or Survivor Pension,one of the NPS local offices may be visited with all required documents. After submission of all documents, they can obtain the NPS money at the Incheon Airport on the date of departure.

If insured person has left Korea, s/he may submit an application to the Sri Lanka Bureau of Foreign Employment to obtain the lump-sum refund, lump-sum death payment or unpaid benefits from the NPS. The SLBFE will send the applications to NPS through the Embassy of Sri Lanka in the Republic of Korea. Then NPS pays the benefit and sends a notice of payment to the applicant directly. Sri Lanka has concluded MOU with the Republic of Korea in this regard on 22 November 2011.

More Details:- http://english.nps.or.kr/jsppage/english/main.jsp

Insurance Schemes in Korea

The foreign workers and their employers must subscribe to the following four insurance schemes under the Labour Act on the Employment of Foreign Workers.

01. Departure Guarantees insurance:

The employer should obtain this insurance coverage on behalf of the foreign employee if the employee has completed one year or more to pay gratuity when the foreign worker leaves the work place. The employer should apply for the insurance from Samsung Fire & Marine Insurance Co., Ltd. within 15 days from the effective date of labor contract. The employee can obtain the benefits of this insurance through the employer when departing to home country after working for more than one year without desertion and change of workplace.

02. Guarantee Insurance:

The employer should obtain this insurance coverage on behalf of the foreign employee to ensure the wages of workers against the delay of payments. The employer should apply for the insurance from the Seoul Guarantee Insurance Co., Ltd within 15 days from the effective date of labour contract. The workers can obtain the unpaid wages from this insurance after verifying facts through the Ministry of Employment and Labour.

03. Return Cost Insurance:

The employee has to obtain this insurance coverage to meet the expenses of their return journey. The employee should apply for the insurance from Samsung Fire & Marine Insurance Co., Ltd. within 80 days from the effective date of labour contract. The Insurance fee for Sri Lanka is KRW 600,000.

04. Casualty Insurance:

The foreign worker has to obtain this insurance coverage to claim compensation in the event of an accident, sickness, disability or death. The employee should apply for the insurance from Samsung Fire & Marine Insurance Co., Ltd. within 15 days from the effective date of labor contract. The employees apply for this insurance for 3 years at the training center, which is to be renewed after completing the three year contract period.

More Details:- https://www.eps.go.kr/ph/view/view_03.jsp