CONTENTS
- 1. Industrial Accident Temporary Disability Benefits | A System Securing the Livelihood of Injured Workers
- - Grounds That May Be Recognized as an Industrial Accident
- 2. Industrial Accident Temporary Disability Benefits | Definition and Amount Paid
- - Method of Calculating the Average Wage
- - Partial Temporary Disability Benefits
- - Temporary Disability Benefits for Low-Income Workers
- - Temporary Disability Benefits for Elderly Persons
- - Temporary Disability Benefits During the Re-medical Care Period
- 3. Industrial Accident Temporary Disability Benefits | Application Method and Points to Note
- - Industrial Accident Temporary Disability Benefits: Documents to Submit and Drafting Tips
- 4. Industrial Accident Temporary Disability Benefits | Sanctions for Fraudulent Receipt of Temporary Disability Benefits
- - Checklist Before Responding to Temporary Disability Benefits
1. Industrial Accident Temporary Disability Benefits | A System Securing the Livelihood of Injured Workers
Temporary disability benefits are payments the state provides so that a worker's livelihood does not become precarious while the worker is unable to work because of an accident or illness at a work site.
Under the Industrial Accident Compensation Insurance Act, these benefits replace a portion of income during the period when a worker cannot work because of medical treatment, and they are among the workers' compensation benefits that many workers rely on.
Temporary disability benefits serve as a basic safety net that protects an injured worker's livelihood and supports adequate treatment.
A worker may, however, be disadvantaged when the application documents are incomplete or the procedure is misunderstood, so it generally helps to understand the requirements accurately and prepare step by step.
Grounds That May Be Recognized as an Industrial Accident
Occupational Accident | ▶An accident that occurs suddenly through an external cause, in connection with the work, while under the employer's control and management |
Occupational Disease | ▶Cerebrovascular or cardiovascular disease caused by overwork in the course of duties, and similar conditions |
Commuting Accident | An accident that occurs while commuting, namely one that occurs while traveling by a usual route and method, provided there is no interruption during any deviation from the route |
2. Industrial Accident Temporary Disability Benefits | Definition and Amount Paid
Temporary disability benefits are paid when a worker needs medical care for four or more days because of an occupational accident.
In practice, whether the worker is hospitalized or treated as an outpatient, anyone whose medical care period on the medical certificate is four or more days may apply.
When the medical care period is three days or fewer, temporary disability benefits cannot be claimed, and the worker should instead consider a civil claim for damages based on the employer's intent or negligence, or disaster compensation.
The right to claim temporary disability benefits also lapses by prescription if it is not exercised within three years from the day work was suspended.
[Characteristics of Industrial Accident Temporary Disability Benefits]
Method of Calculating the Average Wage
Temporary disability benefits are based on 70 percent of the average wage for the three months before medical care began.
The average wage is the daily average of the wages received for labor actually performed, that is, the total wages over the three months before the accident divided by the total number of days in that period.
For example, a worker who had earned 2.5 million won per month and received 7.5 million won over three months would divide that amount by 89 to 92 days.
If the figure is simply treated as 90 days, the daily average comes to 83,333 won.
Seventy percent of this amount is then the daily temporary disability benefit.
If the calculated average wage falls below the worker's ordinary wage, the ordinary wage is used as the average wage instead.
Partial Temporary Disability Benefits
After the industrial accident is approved, temporary disability benefits are paid for the days within the medical care period on which the worker was actually unable to work, and weekends and holidays count toward those days.
Days on which the worker actually worked are excluded, so any day the worker attended work in part is left out.
For a worker in the recovery stage, or one who has taken up work after a minor injury and can receive periodic medical care, partial temporary disability benefits are paid.
Formula for Calculating Partial Temporary Disability Benefits
(That worker's average wage for the day of employment minus the wage for the day of employment) × 90/100 = partial temporary disability benefits
Temporary Disability Benefits for Low-Income Workers
For some low-income workers among industrial accident victims, supplementary benefits are added because temporary disability benefits alone may not be enough to support their livelihood.
A further 10 percent is paid on top of the standard temporary disability benefit of 70 percent, so the worker ultimately receives 80 percent of the average wage.
If the daily benefit is still below 80 percent of the minimum compensation standard amount, an amount equal to 90 percent of the average wage may be paid.
When the temporary disability benefit falls below the minimum wage, the minimum wage becomes the daily temporary disability benefit.
Minimum Compensation Standard Amount
- 50 percent of the average wage of all workers
- 2025 minimum compensation standard amount: 80,240 won per day
Temporary Disability Benefits for Elderly Persons
When a worker receiving temporary disability benefits reaches the age of 61 and so becomes an elderly beneficiary, separate rules for reduced payment apply, with benefits set at 70 percent of the average wage, 90 percent of the average wage, or the minimum wage.
▶ Standards for Reduced Payment for Elderly Persons Receiving Temporary Disability Benefits at 70% of the Average Wage
Age | Amount Paid |
Age 61 | Daily temporary disability benefit × 66/70 |
Age 62 | Daily temporary disability benefit × 62/70 |
Age 63 | Daily temporary disability benefit × 58/70 |
Age 64 | Daily temporary disability benefit × 54/70 |
Age 65 and after | Daily temporary disability benefit × 50/70 |
Temporary Disability Benefits During the Re-medical Care Period
Re-medical care refers to medical care benefits that a person who has already received them receives again when there is a medical opinion that further treatment is needed because the injury or disease has recurred, the condition has worsened, or for similar reasons.
In such a case, the re-medical care period is recognized only on approval by the Korea Workers' Compensation and Welfare Service, based on the diagnosis and medical opinion of a physician, dentist, or oriental medicine doctor.
Once re-medical care is approved, temporary disability benefits are paid in the same way as for the initial medical care.
For the days on which the worker cannot work because of re-medical care, 70 percent of the average wage may again be provided.
[Examples of Grounds for Re-medical Care]
- A proximate causal relationship is recognized between the original injury or disease and the injury or disease for which re-medical care is requested
- A medical opinion indicates that re-medical care can be expected to produce treatment effects
- Removal of an internally fixed metal pin or other internal fixation device is needed
- Repeat surgery on the amputation site is needed to fit a prosthesis
See More
Truck owners who receive transportation fees based on performance are also eligible for industrial accident insurance benefits.
Is it possible for a daily worker to apply for industrial accident compensation? How to be recognized as a daily worker
Read in detail the main contents and scope of application of the Industrial Accident Compensation Insurance Act
3. Industrial Accident Temporary Disability Benefits | Application Method and Points to Note
Once the medical care period begins after the industrial accident is approved, the worker may apply for temporary disability benefits right away.
Because temporary disability benefits are reviewed automatically alongside medical care benefits, the separate application documents should be prepared in full.
Industrial Accident Temporary Disability Benefits: Documents to Submit and Drafting Tips
- Application for temporary disability benefits
- Diagnosis and medical opinion (specifying the treatment period)
- Pay statements and work records (wage ledger for the four months up to and including the month of the accident)
- For overtime allowances, annual leave allowances, bonuses, and similar items, documents that allow the records to be verified over one year
When applying for temporary disability benefits, the worker should accurately distinguish and record the medical care period and the actual number of days work was suspended.
If the application contains many errors, payment may be delayed, so it can help to consult an expert before submission.
If the review ends in disapproval or payment is delayed, the applicant should confirm the grounds for objection with the Service's case officer and, if needed, submit supplementary documents.
A request for re-examination and administrative litigation are also available.
In particular, documents that can prove income, such as pay statements and the employment contract, should be attached to the industrial accident application. If the income documents are unclear, the additional low-income supplement may not apply, so the worker should take care.
4. Industrial Accident Temporary Disability Benefits | Sanctions for Fraudulent Receipt of Temporary Disability Benefits
Fraudulent receipt of temporary disability benefits does occur.
Collecting temporary disability benefits despite having actually worked during the medical care period, attaching a false diagnosis, or filing a false request for re-medical care may all be treated as fraudulent receipt.
A person who obtains temporary disability benefits this way through deceit or other wrongful means is subject to collection of an amount equal to twice the benefits received.
Among those who fraudulently receive benefits, the names of 1) persons who have fraudulently received benefits two or more times for a total of 100 million won or more, and 2) persons whose single fraudulent amount is 200 million won or more may be disclosed.
Checklist Before Responding to Temporary Disability Benefits
Temporary disability benefits are recognized only for the period during which work was suspended for actual medical care.
A private settlement with the company, an implied return to work, and unauthorized re-employment may all amount to fraudulent receipt, so the facts should always be recorded honestly.
Workers can avoid disadvantages by carefully organizing the facts, including the calculation of the medical care period, the calculation of the average wage, and whether any partial work was performed.
Where the injury or disease has not been cured, the condition meets the criteria for a severe medical care state grade, and the worker remains unable to work because of medical care even after two years have passed, an injury-disease compensation annuity should be paid.
Before applying for temporary disability benefits, a worker who needs guidance on the practical aspects of the benefits may consult with the labor attorneys and labor law attorneys at Daeryun to help protect their rights.
