Which system pays after an injury at a small farm?
A fall during harvesting or an injury in a livestock shed can create medical costs and an immediate loss of income.
This calculator first identifies the compensation route, then organizes the employer’s direct compensation under Korea’s Labor Standards Act when industrial accident insurance does not apply.
A small workplace can still have compensation obligations, and a failure to register for insurance does not by itself mean that the worker cannot claim benefits.
Workers, employers and families should confirm the applicable system before negotiating from a monetary result.
Korea-based 2026 rules · verified 2026-11-08
The Labor Standards Act version used took effect on 2026-10-08; its Enforcement Decree took effect on 2025-10-23.
The industrial accident insurance exclusion provisions were checked against the Decree effective 2026-07-01.
All amounts are KRW, and the relevant authority and evidence determine employee status, work-relatedness, industry classification, disability grades and actual payment obligations.
Fewer than five workers does not automatically mean exclusion
Industrial accident insurance route
Ordinary restaurants, manufacturers and service businesses are generally subject to compulsory industrial accident insurance even with fewer than five workers.
A corporate agricultural, forestry or fishing business, or one with at least five regular workers under the insurance rules, does not meet the small non-corporate business exclusion.
Logging is expressly outside this particular forestry exclusion.
Keep failure to register or pay premiums separate from a statutory exclusion.
Employer compensation under the Labor Standards Act
The main target is a non-corporate agricultural, forestry other than logging, fishing or hunting business with fewer than five regular workers under the insurance rules.
Where no voluntary industrial accident insurance approval was effective at the time of the accident, an employee covered by the Labor Standards Act may need to pursue the employer’s direct work-injury compensation.
Annex 1 of its Decree applies Articles 78–92 to workplaces with four or fewer workers.
Labor Standards Act exclusion
Article 11 excludes businesses employing only relatives living together and domestic servants.
Household employment activities also have a separate industrial accident insurance exclusion.
This domestic-servant input concerns direct household employment; a domestic worker employed by a certified domestic-service provider should not select the exclusion merely because the work takes place in a home.
Do not turn the Labor Standards Act calculation into an enforceable claim in these circumstances; review civil liability, the actual employment arrangement and any other protection separately.
If an applicable insurance approval or special arrangement has already been confirmed, check that route with the Korea Workers’ Compensation and Welfare Service first.
Pending confirmation
A reciprocal work arrangement, a family member helping at a farm, disputed employee status or disputed work-relatedness requires further evidence.
Separate public-official, seafarer and private-school schemes cannot be decided with this tool.
A pending result means that facts remain to be confirmed; it does not establish that there is no right to claim.
Confirm the insurance headcount and approval at the accident date
Article 2-2 of the Industrial Accident Compensation Insurance Act Decree uses worker-days over 14 operating days from the first employment of a worker, divided by 14, for this small agricultural-sector business test.
If the result is below five, the 14-day period is moved forward one day at a time.
Where the business ends or an accident occurs within the first 14 days, a special rule uses worker-days up to that point divided by the operating days.
The rule also establishes coverage from the first day of the relevant period that first reaches five workers, so today’s headcount must not be used to reverse an earlier coverage status.
Documents to check before entering the number
- Collect worker attendance, wage records and operating-day records, and use a headcount confirmed under the industrial accident insurance rules.
Do not automatically copy a figure calculated for a different Labor Standards Act five-worker test.
- Check whether the business previously became covered after reaching five workers and confirm its insurance relationship with the Service.
A subsequent fall in staffing does not by itself establish exclusion.
If the current count is below five but an earlier period reached five, this tool leaves the route pending review of deemed continued enrollment, approved cancellation and termination of the insurance relationship.
- Review the voluntary approval and whether it was effective at the time of the accident.
Article 5(4) of the Premium Collection Act requires the Service’s approval; applying after the accident does not retroactively insure that accident.
Daily average wage, medical costs and absence inputs
The usual starting point for average wage is wages during the preceding three months divided by the calendar days in that period, but a daily wage or a monthly salary divided by a fixed number is not always the correct amount.
Confirm the ordinary-wage floor in Article 2(2), excluded periods and pay, and the special circumstances of short employment or daily work before entering a daily average wage.
Decree Article 52 identifies the accident causing the injury or death, or the date a disease is confirmed by diagnosis, as the event for calculating average wage.
That wage-calculation event is not automatically the limitation starting date for every compensation item.
Average-wage adjustment during long treatment
Decree Article 5 provides for an adjustment where the average monthly ordinary wage of comparable workers in the same occupation changes by at least 5%.
Check the application from the following month and the basis for subsequent adjustments.
If different daily rates apply to different periods, prepare separate periods instead of using one rate for the entire history.
Keep all absence inputs on the same period
Medical compensation uses necessary treatment costs within the scope confirmed under Article 78.
Absence days and wages received must cover the same period.
Do not assume that every month has 30 days or allocate received wages across an arbitrary number of months.
Wages paid during the period and absence compensation already paid are separate inputs.
Absence-compensation formula
Absence compensation = (daily average wage × entered absence days − wages received for the same period) × 60%
Article 79 uses 60% of average wage; where part of the wages was received, 60% applies to the difference after those wages.
This is separate from industrial accident insurance absence benefits and ordinary employer-attributable shutdown allowances.
If the entered wages exceed the average wage for the entered period, reconcile the period and payment records.
Decree Article 46 requires medical and absence compensation at least once each month.
Disability after recovery: the Labor Standards Act’s 14 grades
Under Article 80, disability compensation after recovery from a work-related injury or disease is the daily average wage multiplied by the days in the Act’s annex.
Confirm the grade using the physical-disability criteria in Decree Annex 6 rather than assigning it from a diagnosis or a private-insurance impairment percentage.
These are Labor Standards Act days, not the industrial accident insurance disability-benefit schedule.
Labor Standards Act annex: disability grades and days of daily average wage under Article 80| Disability grade | Days of average wage |
|---|
| Grade 1 | 1,340 days |
| Grade 2 | 1,190 days |
| Grade 3 | 1,050 days |
| Grade 4 | 920 days |
| Grade 5 | 790 days |
| Grade 6 | 670 days |
| Grade 7 | 560 days |
| Grade 8 | 450 days |
| Grade 9 | 350 days |
| Grade 10 | 270 days |
| Grade 11 | 200 days |
| Grade 12 | 140 days |
| Grade 13 | 90 days |
| Grade 14 | 50 days |
Adjustment for confirmed multiple disabilities
Decree Article 47(2) starts with the most severe grade.
At least two disabilities at grade 5 or more severe raise that grade by three levels; otherwise, at least two at grade 8 or more severe raise it by two; otherwise, at least two at grade 13 or more severe raise it by one.
The result cannot exceed grade 1.
Confirm that the entries are separate disabilities eligible for combination, and do not enter the same body part twice.
Aggravation of a pre-existing disability in the same part
Article 80(2) subtracts the days for the pre-existing grade from those for the aggravated grade and multiplies the difference by the average wage when the compensation claim arises.
A change from grade 10 at 270 days to grade 7 at 560 days therefore produces a 290-day difference.
This tool handles that deduction for one current disability and leaves combinations of multiple current disabilities with a pre-existing disability pending further assessment.
Death and the two-year treatment lump sum are separate scenarios
Survivor compensation: 1,000 days; funeral expenses: 90 days
For a work-related death, Article 82 provides 1,000 days of average wage for survivor compensation, while Article 83 provides 90 days for funeral expenses.
At a daily average wage of 100,000 KRW, these are 100,000,000 KRW and 9,000,000 KRW, totaling 109,000,000 KRW.
This is the total for the death items; previously accrued medical and absence compensation must be recorded separately without duplicating the same costs.
The Act calls for payment without delay after death.
Still not recovered after two years of treatment
Article 84 allows the employer to provide a lump sum of 1,340 days of average wage where the injury or disease remains unhealed after two years from the start of treatment, releasing the employer from subsequent compensation responsibility under this Act.
At 100,000 KRW per day, the amount is 134,000,000 KRW.
This is an employer option that replaces subsequent responsibility, so future disability, survivor and funeral amounts are not added to the same scenario.
Confirm the two-year condition, continuing lack of recovery and the relevant timing, and separate already accrued medical and absence items.
Confirm the eligible survivor and dependency relationship
Decree Article 48 prioritizes a supported spouse, children, parents, grandchildren and grandparents in that listed order; then the same relationships without dependency; then supported siblings; then unsupported siblings.
A spouse includes a de facto spouse, and the listed order also matters within each category.
Further rules prioritize adoptive parents and specify parent and grandparent rankings, while a designation by will or advance notice to the employer can alter the result among the listed survivors.
The survivor amount is not repeated for each family member, and the recipient should remain unconfirmed until entitlement has been checked.
Gross negligence, earlier payments and other damages
An employer’s allegation of carelessness does not establish an exemption.
Article 81 allows an exception for absence and disability compensation where the worker’s gross negligence has been recognized by the Labor Relations Commission.
Do not extend that specific exception to a blanket exemption for medical, survivor, funeral or Article 84 lump-sum compensation.
If negligence is disputed or the Commission’s recognition is unconfirmed, leave the affected calculation pending confirmation.
Reconcile each compensation item separately
Reference balance for an item = calculated amount − same-item compensation already paid − confirmed same-cause offset
Article 87 releases the employer within the value of corresponding compensation already received under the Civil Act or another law for the same cause.
A settlement or insurance payment is not automatically deductible in full: establish the loss, period and legal basis it covers.
Do not record the same payment both as prior compensation and as another-damages offset.
For medical compensation of 2,000,000 KRW, prior payment of 500,000 KRW and a confirmed same-cause offset of 300,000 KRW leave a reference balance of 1,200,000 KRW.
If offset treatment is unconfirmed, distinguish the calculated gross amount from an unsettled balance.
Step-by-step use and worked examples
- Review employment terms, work instructions and the accident record to confirm employee status and work-relatedness.
Enter the industry, corporate status, insurance-specific headcount and insurance relationship at the accident date.
- Choose treatment, disability after recovery, death or the Article 84 lump-sum scenario.
Do not add incompatible future compensation scenarios together.
- Enter the confirmed daily average wage, necessary medical costs, absence days, wages received for that same period and the relevant grades and confirmations.
Allocate earlier payments and same-cause offsets using receipts, bank transfers and settlement records.
- Read the route and pending reasons before comparing gross amounts and reference balances.
Check date references and next actions, retain the documents and contact the responsible authority.
Illustration: four-worker non-corporate farm during treatment
Assume that headcount, prior coverage history, voluntary insurance and employee status have all been confirmed, resulting in the employer-compensation route.
At a daily average wage of 100,000 KRW, 30 absence days and 600,000 KRW of wages received during those days, absence compensation is 1,440,000 KRW.
Adding necessary medical costs of 2,000,000 KRW gives a gross total of 3,440,000 KRW before compensation payments or offsets.
With no wages received, absence compensation for the same 30 days is 1,800,000 KRW; the example does not establish a fixed 30-day month.
Illustration: disability grade adjustment
At 100,000 KRW per day, a single grade 7 disability gives 560 days or 56,000,000 KRW.
Two confirmed separate grade 5 disabilities adjust to grade 2 at 1,190 days; two grade 8 disabilities adjust to grade 6 at 670 days; two grade 13 disabilities adjust to grade 12 at 140 days.
Two grade 14 disabilities do not meet these uplift thresholds, so the most severe grade remains grade 14 at 50 days.
Aggravation of one pre-existing grade 10 disability to grade 7 yields the 290-day difference, or 29,000,000 KRW.
The example button fills fictional confirmed conditions for explanation, so replace the industry, approval, grade and offset confirmations as well as the amounts.
Displayed totals add item calculations rounded to whole KRW.
Before agreement or payment, reconcile the evidence, relevant periods and final rounding treatment.
One-year installments and a future insurance premium budget
Installments require both conditions
Article 85 requires proof of the employer’s ability to pay and the recipient’s consent for installments over one year.
It covers disability, survivor and Article 84 lump-sum compensation, not a blanket deferral of medical, absence and funeral items.
The calculator’s 12-payment allocation is a budgeting illustration, not a statutory requirement to pay equal amounts each month.
The first 11 amounts and the final remainder preserve the total despite whole-KRW rounding.
Basic premium estimate for future insurance
The 2026 notice specifies agriculture at 20‰, forestry at 58‰ and fishing at 27‰, plus commuting accident insurance at 0.6‰.
For annual wages of 30,000,000 KRW, the basic estimates are 618,000 KRW for agriculture, 1,758,000 KRW for forestry and 828,000 KRW for fishing.
The estimate excludes the Service’s final industry classification, individual experience adjustments, reductions and other charges; no assumed industry rate is assigned to hunting or other businesses.
The premium and a single accident exposure measure different things over different periods.
No accident probability is calculated, so the comparison does not establish a break-even point or a financial recommendation to insure.
Voluntary enrollment requires the Service’s approval and does not retrospectively cover an accident that already occurred.
Check the contractual and legal relationship separately where agricultural safety insurance or private cover is also present.
The three-year reference date and the actual claim
Labor Standards Act Article 92 provides a three-year limitation period for work-injury compensation claims that are not exercised.
Civil Act Article 166 and the event giving rise to each item must be checked because the starting point is when that right can be exercised, not one accident date applied automatically to everything.
Medical and absence payment periods, disability after recovery and death compensation can involve different claim events.
The displayed date is a calendar reference obtained by adding three years to the user-confirmed date when the selected right could be exercised.
A reference date is not a final deadline or an extinction decision
An entered date of 2026-11-08 produces 2029-11-08; 2024-02-29 produces 2027-02-28 because the corresponding leap date does not exist.
First-day rules, period expiry, Saturday and public-holiday rules, interruption, suspension and acknowledgment are not automatically applied.
Labor Standards Act Article 88(5) addresses interruption effects of a review or mediation request and the commencement of review or mediation, so verify the receiving authority and documents.
Do not assume that informal advice or merely contacting the employer has the same effect.
- Insurance route: Confirm coverage with the Korea Workers’ Compensation and Welfare Service and prepare the relevant benefit application.
Use the industrial accident benefits calculator for that separate benefit system.
- Employer-compensation route: Present the employer with itemized amounts, periods, prior payments and evidence.
For a dispute, confirm the competent labor office’s review or mediation procedure under Article 88 and keep proof of receipt.
- Excluded or pending route: Resolve employee status, special employment status, family relationships, headcount evidence or civil liability.
An insurance exclusion alone should not be treated as a reason to sign away all possible rights.
Practical scenarios and documents to retain
Seasonal workers, daily workers and their families
Collect the employment contract, actual work instructions, wage transfers and attendance records to establish employee status.
Nationality or the label of daily worker does not replace an assessment of the employment relationship and workplace coverage.
Organizing diagnoses, medical bills, treatment periods and wages received by period reduces the risk of counting the same money twice.
Farm employers and survivors
Employers can use insurance records and wage ledgers to separate medical and absence obligations already accrued from future scenarios.
Survivors should first verify family relationships, dependency and entitlement, without multiplying the death total by the number of family members.
A payment agreement needs an explicit record of items, covered periods, amounts already paid, remaining payment dates and the scope of the agreement.
Article 91 requires important compensation documents to be retained while compensation is unfinished or before the claim’s limitation period has expired.
Article 86 also provides that leaving employment does not change the right to compensation.
Multi-level contracting, combined current and pre-existing disabilities, or overlapping third-party damages and insurance require further confirmation of responsibility before completing the schedule.
Frequently asked questions
Does a small restaurant use this instead of industrial accident insurance?
Ordinary businesses are generally subject to compulsory insurance even below five workers.
Separate that situation from the small non-corporate agricultural-sector exclusion and confirm coverage with the Service.
Is a non-corporate farm excluded because only four people work today?
Today’s number is insufficient to decide.
Check the insurance-specific 14-operating-day rule, any earlier period first reaching five workers and the insurance relationship at the accident date.
What if the employer never filed an insurance registration?
Failure to register is different from statutory exclusion.
For a compulsorily covered business, check benefit applications with the Service rather than automatically switching to employer direct compensation.
Can medical compensation be reduced because the worker was careless?
Article 81’s Commission-recognition condition concerns absence and disability compensation.
Do not apply an employer-alleged fault percentage to every item, including medical costs.
Can I use industrial accident insurance grade 7 days?
The Labor Standards Act annex uses 560 days for grade 7.
Check the governing statute and grade criteria together because the insurance schedule is a separate one.
Does every survivor receive 1,000 days separately?
The survivor total is not multiplied by the number of family members.
Confirm the eligible range, priority and designation exceptions in Decree Article 48 before identifying the recipient.
Does the worker automatically receive an extra 1,340 days after two years?
Article 84 is the employer’s option to replace subsequent responsibility where recovery has not occurred.
It is not automatically added on top of future disability, survivor and funeral compensation.
Does an accident over three years ago always produce a zero claim?
The point when each right became exercisable and any interruption or suspension need review.
Do not infer that every right has expired merely by counting three years from the accident.
Does a low premium estimate mean insurance is always financially better?
The premium is a future basic budget and the exposure is a specified accident scenario.
Without accident probability, the final rate, reductions and coverage details, it does not support an automatic recommendation or break-even conclusion.
Official sources and the next rules update
Current statutes, articles and annexes were verified using the National Law Information OPEN API on 2026-11-08.
Labor Standards Act MST285279 is effective 2026-10-08; its Decree MST270551 is effective 2025-10-23; the industrial accident insurance Act and Decree MST283459 and MST287491 are effective 2026-07-01.
Premium Collection Act MST285369 is effective 2026-10-08, and Civil Act MST284415 is effective 2026-03-17.
Notice No. 2025-91 is valid from 2026-01-01 through 2026-12-31, so recheck exclusions, disability tables, compensation days and the new premium notice for the following year.
- Labor Standards Act (근로기준법), Articles 2, 11 and 78–92 and the annex: average wage, direct compensation, gross negligence, installments, offsets and limitation.
- Labor Standards Act Decree, Articles 5, 46–48 and 52; Annexes 1 and 6: wage adjustment, payment timing, disability adjustment, survivor priority and small-workplace application.
- Industrial Accident Compensation Insurance Act Decree Article 2 and Article 2-2: exclusions and the insurance headcount rules.
- Premium Collection Act Article 5 and Articles 6 and 10: compulsory and approved voluntary insurance, deemed enrollment and termination of the insurance relationship.
- Act on the Employment Improvement of Domestic Workers, Article 6: current MST232959, effective 2022-06-16.
The domestic-servant exclusion does not simply carry over to workers employed by certified domestic-service providers.
- 2026 industry-specific industrial accident insurance premium notice: agriculture, forestry, fishing and commuting accident basic rates.
- Civil Act Article 166 and Articles 157 and 159–161: exercisability of rights and period-calculation rules.
Confirm the route and prepare the claim records
Enter the workplace and accident-date evidence above, then read the route and pending reasons before relying on an amount.
For Labor Standards Act compensation, organize the itemized calculation, earlier payments, wage records and medical evidence for discussion with the employer, and confirm the competent labor office’s review or mediation procedure if there is a dispute.
For an insured case, continue to the industrial accident benefits calculator, and separately complete the application and obtain confirmation of receipt.