[Yonhap]
[Yonhap]

Salaried workers who earn income beyond their regular wages — from interest, dividends, rental income and other sources — will face higher national health insurance premiums. The government plans to halve the deduction threshold applied to such additional income under a revamp of the health insurance contribution system, a change expected to affect about 1.78 million people.

According to health and medical circles, the Ministry of Health and Welfare presented the reform plan to a subcommittee of the Health Insurance Policy Deliberation Committee on Thursday.

Under the current system, health insurance contributions for workplace subscribers are divided into two categories: a wage-based premium levied on monthly salaries, and an income-based premium applied to non-wage earnings such as interest, dividends, rental income and business income. Until now, a set amount has been deducted from non-wage income before premiums are calculated.

The government has decided to reduce the annual deduction threshold for the income-based premium from 20 million won ($13,600) to 10 million won. As a result, workplace subscribers with a meaningful level of supplementary income will pay higher health insurance premiums than they do now.

The measure is intended to improve equity between workplace subscribers and self-employed subscribers by scaling back a deduction benefit that had applied only to the former. The government has been gradually reducing the deduction for workplace subscribers in line with the principle that equal income should carry equal premiums. The threshold was lowered from 72 million won in 2012 to 34 million won in 2018, then to 20 million won in 2022, and will now be cut again to 10 million won.

The government estimates that about 1.78 million workplace subscribers — roughly 8.9 percent of all workplace subscribers — will either begin paying the income-based premium for the first time or see their existing contributions increase. The change is projected to generate an additional 707 billion won in national health insurance revenue each year.

The additional funds are to be directed toward areas requiring greater health insurance spending, including expanded support for community and essential medical services and stronger coverage for rare and serious diseases. The government expects the reform to improve the fairness of the health insurance contribution system while reinforcing its fiscal foundation.


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