A worker must have insurance not only to assure his/her safety but also to sustain clearance at work and independence when accidents happen.
Foreign workers have four types of insurances implemented by law, which are:
Payments made by an employer:
- Retirement benefits of his/her workers within a year or more of serving the company
Employers will pay for their workers' casualty insurance within 15 days effective from the day they arrived in South Korea. This provision is included in their contracts to assure workers' safety and in cases of delayed or absence of salary.
Payments made by employee/foreign worker:
- Returned cost insurance or guarantee insurance
A foreign worker must deposit necessary payment on their accounts at Training Center, and Samsung Insurance company will automatically deduct insurance payments from the said account within 80 days according to the registration in the agency. The insurance company will have to submit a breakdown of salary deduction of workers for the insurance to provide an accurate audit for the reason of their upcoming end of the contract. Payments will depend on which country you came from. Workers from the Philippines will have 400,000 Korean won according to the agreement. This will apply to every worker employed.
- Casualty insurance
Retirement support - or taejikum - in hiring foreign workers is stated in their contracts, which includes the duration of stay in South Korea and the date of their departure. Insurances and benefits of foreign workers are also stated in their contracts. Implementation and application according to labor laws are stated in Article 18 to 18-2, that a foreign worker will be guaranteed a year or more of employment in South Korea.
Rules regarding the registration of foreign workers insurances:
Registration at security agencies of foreign workers will provide a copy of insurances that contains the agreement between an agency and the worker. Insurance payments are 8.3% of a stated salary monthly.
- Join in activities that a certain agency provides to acquire more knowledge about insurances and to help foreign workers understand these benefits.
- Open a bank account at Employment Training Center and deposit necessary payments for insurances such as return cost insurance and casualty insurance.
“Term life insurance is a good defensive game plan” – Dave Ramsey