The government is considering a plan to add an extra 10% of contributions to the fund with fiscal money when specially employed workers such as delivery couriers and freelancers join small and midsize business retirement pensions, according to reports on the 8th.
According to ChosunBiz reporting compiled that day, the Ministry of Planning and Budget and the Ministry of Employment and Labor (MOEL) are discussing applying fiscal support for the small and midsize business retirement pension fund (Pureun Seed), which currently covers SME employees, to specially employed workers and freelancers as well.
Pureun Seed is a fund-type small and midsize business retirement pension fund introduced in September 2022 to raise retirement pension enrollment rates at small and midsize businesses. The Korea Workers' Compensation & Welfare Service (K-COMWEL) manages multiple participants' retirement pensions in a pooled fund. As of the end of last month, 42,243 business sites and 190,000 workers were enrolled in Pureun Seed. The fund size is 1.9095 trillion won, and last year's return was 8.67%.
Small and midsize businesses that join Pureun Seed must pay at least one-twelfth of employees' annual wages each year to the Korea Workers' Compensation & Welfare Service (K-COMWEL). It is essentially setting aside about one month's salary in advance for employee severance. To encourage enrollment, the government adds 10% of the company's contributions to the retirement pension account for three years, limited to employees with monthly pay of 2.81 million won or less.
Specially employed workers and freelancers, who have a self-employed character and were not eligible to join Pureun Seed, have been allowed to enroll in the Pureun Seed individual retirement pension (IRP) starting this month. In line with this, the government is considering giving them enrollment benefits on par with SME employees. A government official said, "The scope and beneficiaries of fiscal support are under discussion."