President Lee Jae-myung pledged to expand the sickness benefits during the presidential election period. Sickness benefits guarantee some income while a person takes time off to treat an illness, regardless of work. On the 22nd of last month, President Lee posted on Facebook, saying, "I will gradually expand the pilot program for sickness benefits, which is a right to take time off when sick, to provide a solid social safety net for everyone," and added, "The basic lives of the people will be managed by the national community."
Sickness benefits are a system operated by most member countries of the Organisation for Economic Co-operation and Development (OECD). Korea also introduced the system on a pilot basis starting in 2022, following the COVID-19 pandemic. Initially, the plan was to fully implement sickness benefits this year, but the review of the main project has been postponed to 2027. A government official noted, "Policy priorities may be reassessed in the new administration."
◇4,815 won to 66,000 won per day
The purpose of sickness benefits is to allow people who cannot take time off due to fear of losing income to receive necessary medical treatment on time. This aims to prevent diseases from becoming severe and reduce medical costs, thereby breaking the vicious cycle of poverty and deteriorating health. Implementation of the first phase of sickness benefits began in July 2022 and ran until December of last year in Jongno, Bucheon, Cheonan in South Chungcheong, Suncheon in South Jeolla, Pohang in North Gyeongsang, and Changwon in South Gyeongsang. Recipients aged 15-64 living or working in these areas received 60% of the minimum wage.
However, benefits cannot be received immediately if someone is sick; there is a waiting period. In Bucheon and Pohang, the waiting period was 7 days, during which benefits could be received for up to 120 days. For example, if someone injures their foot while delivering packages and cannot work, they would receive benefits starting on the 8th day after their injury, excluding the waiting period, for up to 120 days.
In Jongno and Cheonan, the waiting period was 14 days, with a maximum guarantee period of 150 days. In Suncheon and Changwon, hospitalization was required to receive benefits, and the waiting period was 3 days. From the 4th day after an injury, recipients could receive benefits up to 2 days a week for the number of days related to hospitalization or outpatient consultations, up to a maximum of 120 days.
The second phase of sickness benefits is currently being piloted from July 2023 in Anyang and Yongin in Gyeonggi Province, Daegu's Dalseo District, and Iksan in North Jeolla Province, while the third phase has been piloted since July of last year in Chungju in North Chungcheong, Hongseong in South Chungcheong, Jeonju in North Jeolla, and Wonju in Gangwon Province. In the second phase, as before, 60% of the minimum wage is provided as sickness benefits. Based on the current minimum wage (10,030 won per hour), the maximum daily payment can reach 4,815 won. In the third phase, 60% of the average income from the previous three months is provided as sickness benefits. However, thresholds for daily payments range from a minimum of 4,815 won to a maximum of 66,000 won.
Both the second and third phases provide payments for up to 150 days after a waiting period of 7 days, regardless of hospitalization. However, the eligibility criteria differ. In the second phase, individuals whose income is below 120% of the median income can receive sickness benefits. In the third phase, individuals aged 15 to 65 years living or working in the relevant area are eligible for sickness benefits without any income criteria.
◇Large-scale funding and objective diagnosis are necessary
President Lee Jae-myung also pledged sickness benefits when he ran for the 20th presidential election. In December 2021, President Lee posted on Facebook, saying, "We must not allow health to be sacrificed for immediate income," and added, "I will implement universal sickness benefits for all economically active populations."
For the Lee Jae-myung administration to expand sickness benefits nationwide, it must first secure funding. Currently, sickness benefits are operated in cooperation with the Ministry of Health and Welfare and the National Health Insurance Service in local governments. The budget for sickness benefits this year is 3.6 billion won, fully financed by the national government. Expanding sickness benefits nationwide will require considerable funding. To alleviate the financial burden on the government, there are also plans for employers to share some of the costs.
According to a comparative study on sickness benefit systems in foreign countries published in 2021 by the Korea Institute for Health and Social Affairs, Australia, New Zealand, Denmark, and Iceland operate sickness benefits funded by government taxes. In contrast, Italy, Sweden, and Finland collect separate insurance premiums, which are either borne by employers or shared between employers and employees in a specific proportion.
There are also opinions that sickness beneficiaries should require objective certification. The Korea Institute for Health and Social Affairs stated, "Sickness benefits can only be qualified if the loss of work capacity due to illness or injury is proven," adding, "It is important to have a medical approach and certification to determine the loss of work capacity due to illness."
Currently, to receive sickness benefits, individuals must be diagnosed at domestic medical institutions and apply to the National Health Insurance Service. A doctor or traditional medicine practitioner who has completed the required training and applied to participate in the sickness benefits pilot program in the relevant area will determine the diagnosis.