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A panoramic view of the National Health Insurance Service headquarters. / Provided by the National Health Insurance Service

Office workers who earn income through interest, dividends, or building rent rather than salaries will face an increased burden in health insurance premiums.

According to health and medical circles on July 27, the Ministry of Health and Welfare reported a plan to reform the health insurance fee imposition system at a subcommittee meeting of the Health Insurance Policy Deliberation Committee held on July 23, which includes reducing the deduction amount subtracted from non-wage income from the current 20 million won to 10 million won.

Health insurance premiums paid by salaried workers fall into two categories: the monthly wage premium levied on pure salaries received from companies, and the monthly income premium levied separately on side income earned through interest, dividends, rental, or business outside of salaries. Salaried workers have paid the monthly income premium after deducting a certain amount even when having non-wage income.

Accordingly, the Ministry of Health and Welfare aims to promote fairness among insured individuals by cutting the deduction amount applied when calculating the monthly income premium in half through this reform plan, thereby reducing the deduction benefits granted only to company-insured individuals.

The deduction threshold for non-wage income of salaried workers has continuously decreased from 72 million won in September 2012 to 34 million won in July 2018, and to 20 million won in September 2022. Under the principle that individuals earning the same income should pay the same premium, the government is gradually reducing benefits provided to only a portion of all company-insured individuals.

With this measure, 1.78 million people, corresponding to 8.9% of company-insured individuals, will pay additional monthly income premiums or face increased burdens. The government also projects that annual health insurance revenues will expand by 707 billion won through this reform.

                                                                                                          Seo Byeong-ju