South Korea sits with Japan and the United States as one of the few OECD economies without a general statutory paid sick leave entitlement for non-occupational illness. The Labor Standards Act (근로기준법) governs annual paid leave, parental leave, and other absences, but contains no dedicated paid sick leave for ordinary illness. Korean workers rely on annual paid leave (yeonchaa, 연차) for short illness, on the National Health Insurance Service’s pilot Injury and Disease Allowance (상병수당) for some longer absences, and on contractual sick leave from employers — which in Korea is typically modest.

This guide explains the system as it operates in 2026: why there is no statutory sick leave for ordinary illness, how yeonchaa is used in practice, the status of the NHIS Injury and Disease Allowance pilot, occupational injury under Industrial Accident Compensation Insurance, and the pitfalls Korean employers most often run into.

Key takeaways

  • The Labor Standards Act provides no general paid sick leave for non-occupational illness. Employees use annual paid leave (yeonchaa) for short absences.
  • For occupational injury or illness, the Industrial Accident Compensation Insurance Act (산재보험법) provides full medical benefits and wage replacement at approximately 70% of average wage through the Korea Workers’ Compensation and Welfare Service.
  • Since 2022, the National Health Insurance Service Injury and Disease Allowance pilot has provided wage replacement for non-occupational illness in selected pilot regions and industries — gradually expanding toward national rollout.
  • Annual paid leave under article 60: 15 days after one year of service with 80% attendance, increasing by 1 day every 2 years to a cap of 25 days.
  • Many employers offer contractual sick leave (byungga, 병가), often unpaid or partially paid, but generous schemes are uncommon outside large companies.

Why there is no statutory paid sick leave

The Labor Standards Act (LSA) was structured around annual paid leave as the worker’s primary buffer. Article 60 sets out yeonchaa entitlement; article 63 and surrounding provisions cover other absences. Sick leave was historically expected to be funded out of yeonchaa, with longer illness handled through Industrial Accident Compensation for occupational cases or through informal arrangements for non-occupational cases.

That gap — non-occupational illness without statutory wage replacement — is what the NHIS Injury and Disease Allowance pilot is intended to address, with eventual nationwide rollout planned across the late 2020s.

Annual paid leave used for sickness

Article 60 of the LSA entitles employees who have completed one year of service with at least 80% attendance to 15 days of paid annual leave, increasing by 1 additional day every 2 years of continuous service, capped at 25 days. Employees in their first year accrue 1 day per completed month worked, up to 11 days, available for use that year.

When a Korean employee is unwell for one or two days, the typical practice is to apply yeonchaa for those days. The day is paid at the regular wage rate. A medical certificate is generally not required for yeonchaa, since the leave is the worker’s right under article 60.

The downside is the same as in Japan: frequent illness erodes the holiday balance, leaving less for genuine vacation. Yeonchaa is largely use-it-or-lose-it under article 61’s promotion-of-use procedure, with carry-over only where the employer has not properly promoted the use of leave.

The NHIS Injury and Disease Allowance pilot

The Ministry of Health and Welfare and the National Health Insurance Service launched the Injury and Disease Allowance pilot (상병수당 시범사업) in July 2022. As of 2026 it operates in expanded pilot regions and continues to evolve toward national rollout.

Eligibility and benefit

In pilot areas, employees and self-employed individuals enrolled in National Health Insurance can claim a daily allowance during certified non-occupational illness. The allowance is roughly 60% of the minimum wage daily (the precise rate has varied between pilot phases), payable after a waiting period that has been progressively shortened across pilot stages.

The pilot is not yet nationwide. Employers should check the Ministry of Health and Welfare’s Injury and Disease Allowance page for the current pilot scope, region list, eligibility, and rates applicable in 2026.

Industrial Accident Compensation Insurance

For occupational injury or illness — that is, sickness or injury caused by work — the picture is very different. The Industrial Accident Compensation Insurance Act provides:

  • Full medical benefits (medical care benefits, yoyang geupyeo)
  • Temporary disability benefit at approximately 70% of average wage while unable to work
  • Permanent disability benefits, survivors’ benefits, and rehabilitation services for severe cases

Coverage is administered by the Korea Workers’ Compensation and Welfare Service (KCOMWEL). Almost all employees are mandatorily covered through employer contributions to Industrial Accident Compensation Insurance.

The line between occupational and non-occupational illness matters greatly. Stress-related conditions, musculoskeletal injuries, and occupational diseases (long-running noise exposure, chemical exposure, etc.) all require careful classification.

Contractual sick leave (byungga)

Many Korean employers offer contractual sick leave, but Korean practice is generally less generous than Japan or Western Europe:

  • Large companies sometimes offer 30 to 60 days per year at full or partial pay for serious illness
  • Small and medium businesses typically offer no contractual sick leave beyond yeonchaa
  • Foreign multinationals in Korea often import their global sick leave policy, exceeding the local norm

Where byungga exists, it is usually conditional on a medical certificate and structured around longer absences rather than 1- to 2-day illnesses (which are expected to use yeonchaa).

Termination for illness

The LSA’s general protection against unfair dismissal under article 23 applies to ill employees. An employer cannot dismiss an employee solely because of illness without going through the standard “just cause” analysis — and the courts have repeatedly held that long-term illness alone is rarely a just cause unless reasonable accommodations have been explored and the position cannot be held open indefinitely.

For occupational injury, article 23 of the LSA explicitly prohibits dismissal during the medical care period and for 30 days thereafter — a strong protection that does not apply to non-occupational illness in the same way.

Employer obligations

Korean employers have five core obligations on sick leave:

  1. Provide yeonchaa under article 60 of the LSA and accept its use for sickness without demanding medical reasons.
  2. Maintain Industrial Accident Compensation Insurance through KCOMWEL contributions and not interfere with claims for occupational injury benefits.
  3. Comply with article 23 dismissal restrictions during the medical care period for occupational injury.
  4. Apply contractual sick leave consistently if offered, and document the structure in work rules (chwieob gyuchik) for companies with 10 or more employees.
  5. Keep absence and yeonchaa records that demonstrate compliance with article 60 and article 61’s promotion-of-use procedure.

Common pitfalls

Five issues come up frequently for foreign employers and multinationals operating in Korea:

1. Treating yeonchaa as vacation only

As in Japan, refusing yeonchaa for illness because the company has a “separate sick leave policy” is inconsistent with article 60. Yeonchaa is the worker’s right and can be used for any purpose.

2. Misclassifying occupational illness

The line between occupational and non-occupational illness is often unclear, especially for stress-related and musculoskeletal conditions. Misclassifying an occupational illness as non-occupational denies the employee Industrial Accident Compensation benefits and can attract penalties from KCOMWEL.

3. Forgetting article 23 dismissal restrictions

Article 23 prohibits dismissal during the medical care period for occupational injury and for 30 days thereafter. Dismissals during this period are void as a matter of statute.

4. Ignoring the NHIS pilot

In pilot regions, employees may be eligible for the Injury and Disease Allowance from NHIS for non-occupational illness. Some employers, unaware of the pilot, mishandle long absences as if no allowance was available.

5. Promotion-of-use failures for yeonchaa

Article 61’s promotion-of-use procedure requires the employer to formally notify the employee 6 months before the year-end of unused yeonchaa. Failure to follow the procedure means unused yeonchaa carries over and must be paid out — an avoidable cost.

For broader context on Korean leave entitlements, see our overview of annual leave in South Korea and the main types of leave employers manage.

Frequently asked questions

Is there a statutory paid sick leave in South Korea?

Not for ordinary non-occupational illness. The Labor Standards Act provides annual paid leave (yeonchaa) which can be used for sickness. The NHIS Injury and Disease Allowance pilot is gradually expanding toward national rollout for non-occupational illness.

What about occupational injury?

The Industrial Accident Compensation Insurance Act provides full medical benefits and approximately 70% of average wage during the medical care period through KCOMWEL.

How much is yeonchaa?

Fifteen days after one year of service with 80% attendance, increasing by 1 day every 2 years to a cap of 25 days. Employees in their first year accrue 1 day per completed month, up to 11 days.

What is the NHIS Injury and Disease Allowance?

A pilot wage replacement for non-occupational illness, administered by the National Health Insurance Service. Coverage is currently limited to designated pilot regions and industries, with gradual expansion toward nationwide rollout.

Can I dismiss an employee on long-term sick leave?

For non-occupational illness, dismissal must meet the article 23 just-cause standard, which typically requires reasonable accommodation efforts. For occupational injury, article 23 prohibits dismissal during the medical care period and for 30 days thereafter.

Can I require a medical certificate for yeonchaa?

Yeonchaa is the worker’s right and can be used for any purpose without giving a reason. Demanding a medical certificate routinely is inconsistent with article 60.

Putting it into practice

If you employ staff in South Korea, the practical to-do list is short:

  1. Confirm yeonchaa is granted under article 60 and is available for sickness use without requiring medical reasons.
  2. Run the article 61 promotion-of-use procedure 6 months before year-end to avoid carry-over costs.
  3. Maintain Industrial Accident Compensation Insurance and apply it correctly when an injury or illness is occupational.
  4. Check whether your office locations are in NHIS Injury and Disease Allowance pilot regions and inform employees of their rights.
  5. Document any contractual sick leave (byungga) clearly in work rules, distinguishing from yeonchaa and Industrial Accident Compensation benefits.
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Sources

Last updated: 5 May 2026. This article is general guidance, not legal advice. For complex cases — including occupational versus non-occupational classification or NHIS pilot eligibility — consult a Korea-qualified employment lawyer (nodong byeonhosa).