The government is set to establish a retirement benefit and welfare protection system for non-standard workers, including special employment workers, platform workers, and freelancers. This initiative aims to address gaps in the existing social safety net, which is primarily designed around traditional employment contracts.
On August 21, the Ministry of Employment and Labor held the first meeting of a preparatory task force for the so-called 'K-Labor Welfare Council' at the Seoul Business Hub.
The Labor Welfare Council will serve as a public safety net system that oversees retirement benefits, rights protection, and welfare support for the growing number of non-standard workers due to the rise of the platform economy and artificial intelligence (AI). The ministry believes that merely expanding existing social insurance and retirement benefit systems centered on traditional workers will not adequately address the needs of non-standard workers.
To minimize these gaps, labor authorities plan to utilize the Labor Welfare Council to create a personal safety net that allows workers to maintain their career and benefit entitlements regardless of job or platform changes.
The task force includes experts in law, labor relations, employment safety nets, and taxation, as well as field representatives who have worked on labor protection projects for platform and freelance workers.
The group will discuss the functions and organizational structure of the Labor Welfare Council, decision-making processes, retirement benefit program design, and funding strategies. By September, they aim to solidify key details and transition to a broader forum involving stakeholders from labor and management to continue discussions through the end of the year.
Alongside the establishment of the Labor Welfare Council, the government is also pushing for the enactment of a 'Basic Law for Workers,' which will define the fundamental rights of all labor providers. While the Labor Welfare Council will serve as a delivery system for welfare and benefit services, the Basic Law for Workers will provide the legal foundation for protecting non-standard workers.
During the meeting, Park Soo-min, a deputy researcher at the Korea Labor Institute, presented findings on the labor and welfare conditions of special employment, platform, and freelance workers, highlighting the limitations of existing welfare systems centered on traditional employment relationships.
Park identified the structure that places the burden of income loss during periods of illness, leave, or unemployment on the individual labor provider as a key vulnerability. He suggested that a system is needed where career, income, and welfare benefits are accumulated and connected based on the individual rather than the workplace, considering the nature of workers who move between multiple jobs and platforms.
Labor Minister Kim Young-hoon stated, "With the spread of non-standard labor, it is difficult to resolve gaps by merely expanding existing systems. We will establish a new public safety net delivery system that encompasses welfare support and rights protection centered on retirement benefits."
He also noted, "As this is an unprecedented new project, there will be many issues to discuss and differing opinions. I hope that a thorough discussion with experts will lead to the design of a safety net for non-standard labor."
* This article has been translated by AI.
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