In South Korea the most important employee benefit is retirement. Retirement in South Korea is a fairly complex benefit and expert guidance is required.
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When asked to rank employee benefits in order of importance South Korean employees will say Retirement, Death, Disability and Medical. Paid Time Off, though important, ranks last.
The growing number of companies, especially multinational companies, in South Korea are aware of the importance of employee welfare, such as life and medical plan, compensation benefits or corporate pension. This is because good employee welfare will not only motivate the employees, but also keep the employees from moving to different company in similar industry. Therefore, the demand for employee benefits is increasing in South Korea.
Average cost for Employer Sponsored Benefits
The average cost is hard to define as so much depends on the number of employees, their average age and what kind of coverages are included in their plan.
Advice to Employers
Although the South Korean government provides national pension and national health care to employees, it does not provide enough benefits. Therefore, the employees expect the company to offer additional life/disability/medical plan.
It is expected that corporate pension program is going to be mandatory for all the companies in South Korea regardless of their size from 2019. Therefore, it is ideal to prepare for it in advance.
This information about employee benefits in South Korea is provided by EB Incorporation, Asinta’s employee benefits consulting partner in South Korea.