12 trillion won in unemployment benefits last year… Survival of about 600,000 people
Support for self-employed people by taking government bonds? Unemployment benefits are money paid by workers
Compensation for losses from quarantine measures The requirements for worker support are’Kangkan’
Photo = Yonhap News
In addition, while the Democratic Party is promoting support for self-employed people who have been damaged by the novel coronavirus infection (Corona 19), the issue of equity with wage workers is also being raised. According to the Democratic Party’s bill, Min Byeong-deok, it would take up to 24.700 trillion won per month, more than twice the amount of unemployment benefits paid to wage workers who lost their jobs last year. In addition, although workers receive unemployment benefits, the concept of getting their money back on their usual basis is too demanding and controversy about reverse discrimination is expected compared to self-employed people who will receive government support only with operating losses.
◆ 600,000 unemployment benefits for 1 trillion won per month
Last year, the amount of unemployment benefit payments was 11 trillion 850.7 billion won, the largest ever due to the employment turmoil caused by the Corona 19 incident. As the number of unemployed people poured out, it was paid 1 trillion won each month. The previous record was 8,913 trillion won in 2019. Although the specific target and level of support related to self-employment loss compensation has not been determined yet, it would mean that money over two years worth of unemployment benefit payments for 14 million wage-earning workers would be given to the self-employed in one month, as per the National Assembly plan. As of 2019, it is equivalent to three years.
The total budget for the government’s job projects this year is 30,548.1 billion won. Considering the Corona 19 situation, it increased 5,483 billion won (19.8%) from last year (25,499.8 billion won). This includes not only the budget for direct jobs of over 1 million, but also support for maintaining employment of 2 million or more, unemployment benefits for 600,000 unemployed persons per month, and various vocational training expenses such as support for startups. The government reported that there is a demand for employment maintenance of about 780,000 people this year, and organized an employment maintenance subsidy of 1.372.8 billion won.
Although self-employment has suffered a great deal due to the government’s reinforced quarantine measures, a monthly cost of 1 trillion won can inflict around 1.8 million won per month to 600,000 to 700,000 people who lose their livelihoods due to unemployment. Even as of last year, when there was the worst employment shock, 12 trillion won is an amount that can guarantee unemployment benefits at the minimum wage level for up to nine months to unemployed people.
Park Young-beom, professor of economics at Hansung University, said, “It is not possible to raise money of 25 trillion won per month, as well as to determine the actual income for self-employed people. What is the basis for determining the subsidy?” He strongly criticized that it would be better to give a certain amount to everyone without distinction.”
◆Unemployment benefits are usually money paid by workers
The Democratic Party is also considering a plan for the Bank of Korea to take over if the government issues deficit Treasury bonds as a way to raise funds for compensation for losses from self-employment. In fact, it would give debts to self-employed people based on the power of central banking. Aside from the controversy over the soaring national debt, the burden of support for self-employed people is the responsibility of the whole people.
However, the unemployment benefits and various subsidies that workers receive are basically the concept of getting the money they usually pay back. The Employment Insurance Fund is a bankbook stored by employers and workers by withholding 1.6% of each month’s salary, 0.8% each. In order to receive unemployment benefits at the minimum wage level each month, you must work 8 hours a day for at least 7 months. To receive unemployment benefits for 9 months, you must pay 10 years of employment insurance premiums and be 50 years of age or older or disabled.
It does not mean that you can receive a lot of unemployment benefits just because you paid a lot of employment insurance premiums while receiving a high salary. This is because the maximum amount per day is set at 66,000 won in consideration of the purpose of social insurance. In other words, even if you receive a billion-dollar annual salary, the amount of unemployment benefits does not exceed 2 million won per month.
There is a need for self-employment protection, which accounts for 25% of the employed, but some point out that the government policy is too improvised. Jo Joon-mo, professor of economics at Sungkyunkwan University, said, “Even if we take into account the Corona 19 emergency, we have to draw an overall picture to eliminate blind spots, but we are wasting finances by adding them at the same time.” Will bring the collapse of the world.” He added, “It is not common to support self-employed people by setting an upper limit on fixed expenses such as rent or utility bills, not to preserve income.”
◆Excessively difficult employment maintenance subsidies
The discussion of self-employment loss compensation aims to compensate for some of the damages caused by the government’s ban on collective and business restrictions for certain industries. However, the requirements for workers in the travel/exhibition industry or related industries affected by similar quarantine measures and restrictions on entry and exit to receive government support are very strict.
In order for a company that employs workers to receive the government’s employment maintenance subsidies, they must pay a leave and leave allowance equivalent to 70% or more of the average wage, no matter how difficult management is. Application requirements are also possible only when inventory increases by 50% or more or production and sales decrease by 15% or more, and the government (the head of a job security agency) acknowledges the reason. The criteria for determining the suspension of business should be closed for at least 25% per month, and the leave must be allowed for at least one month per employee to apply.
The unpaid leave and leave subsidy is literally a’rice cake of pictures’. It must be proven that production and sales have decreased by more than 30%, and above all, three months of paid leave must be followed before unpaid leave to apply. The amount of government support is also 50% of the average wage of the worker. In order to receive the unpaid leave subsidy, it must also be approved by the Labor Commission. The scale of closure to receive government support is also difficult. Small businesses with less than 20 employees must leave 10 or more employees off to receive the unpaid leave support. This is the reason why criticism comes out, saying, “It’s a good word for support, and a system that installs a ventilator after a company fails.”
The government also admits that support for unpaid leave and leave is difficult. An official from the Ministry of Employment and Labor said, “The purpose of applying for the unpaid leave subsidy is to apply until the company can withstand it as much as possible,” he said. “There is a message that companies that live only with government support without special effort are not supported.”
Reporter Baek Seung-hyun [email protected]