Social Security and Its Policy Implications for Immigrant Workers

Abstract

Based on a 2020 survey of foreign workers, this paper examines social security for non-professional workers (E9 visa) and Chinese-Koreans (H2 and F4 visas), who account for the majority of low-wage immigrant workers residing in Korea. The focus of this paper is on immigrant workers’ enrollment in social insurance schemes (excluding the National Health Insurance) and four other optional insurance plans. We also discuss immigrant workers’ awareness of these insurance programs. In the case of employment insurance, immigrant workers in non-professional employment(E9) and Chinese Koreans(H2/F4) are not subject to mandatory coverage, although they are allowed to enroll in the insurance on a voluntary basis. About 60% of immigrant workers were aware of the employment insurance; 46.9% of immigrant workers reported that their employers were covered by industrial accident insurance. Whether or not an immigrant worker can join the National Pension depends on the social security agreements between the worker’s home country and Korea. Regarding the National Pension, only Chinese citizens were surveyed, and only half(50.1%) of them answered that they joined the National Pension. In addition, the rate of subscription was 61.2% for Departure Guarantee Insurance, 40.0% for Guarantee Insurance, 59.0% for Return Cost Insurance(59.0%), and 56.6% for Casualty Insurance(56.6%). This paper also makes policy suggestions to increase the universality and inclusiveness of Korea’s social security system.