The Criteria for "Ability to Work"

When you look into the Basic Livelihood Security Program, you'll constantly encounter the term work ability. This is a more important concept than it seems, as whether you are deemed to have work ability or not significantly changes the type and conditions of benefits you can receive. I don't know if there are people who apply for benefits just to live comfortably when they are able to work. Conversely, there may be people who are genuinely too sick to work but cannot prove it properly and thus miss out on benefits. This is why the state uses work ability as a very important benchmark.

Ages 18-64 are initially considered 'able to work'

To start, in the Basic Livelihood Security Program, all individuals between the ages of 18 and 64 are initially considered recipients with work ability. Those outside this age range—under 18 or over 65—are naturally viewed as recipients without work ability. This means that if you are in the prime age for economic activity, the state assumes you are 'someone who can earn a living' unless there are specific exceptional reasons. This is the starting point for all calculations.

So why is the work ability assessment necessary?

While having work ability is the default assumption, every person has their own circumstances. They may be too sick or injured to work. A formal procedure called a work ability evaluation is in place to identify these individuals.

This evaluation does more than just categorize people as 'able to work' or 'unable to work'; it directly affects the type and conditions of the benefits you receive. This evaluation is particularly crucial for livelihood benefits and medical benefits. The document explicitly states that the work ability evaluation is conducted for recipients of livelihood benefits to designate them as conditional recipients and for recipients of medical benefits to determine their type of medical assistance.

• Livelihood Benefits: If you have work ability, you receive livelihood benefits on the 'condition' that you participate in self-sufficiency projects (conditional recipient). However, if the evaluation determines that you 'lack work ability', you can receive livelihood benefits without such conditions.
• Medical Benefits: Work ability is an important criterion for distinguishing between Type 1 and Type 2 medical benefits. If you are judged as lacking work ability, you are very likely to be classified as a Type 1 recipient, which has a much lower co-payment for hospital fees.

Who is considered unable to work?

It's important to understand the specific criteria for being recognized as lacking work ability. This can be divided into three main types.

Cases that are immediately recognized (age, disability, etc.)

If you fall into any of the following categories, you are recognized as lacking work ability without a complex evaluation process.

• A person with a severe disability as defined by the "Act on Employment Promotion and Vocational Rehabilitation for Persons with Disabilities."
• A person with a 'severe degree of disability' as defined by the "Welfare of Persons with Disabilities Act."
• A person who has been assessed as having injury grades 1 to 3 as defined by the "Enforcement Decree of the Act on the Honorable Treatment and Support of Persons of Merit to the State."

Cases that require a medical evaluation (illness, injury)

Individuals who need treatment or care due to illness, injury, or their after-effects are the most common subjects for evaluation. In this case, you must obtain a medical certificate for work ability evaluation from a doctor and submit it. The National Pension Service then conducts a medical evaluation, and based on its results, the city/county/district mayor makes the final determination of a lack of work ability. This procedure is almost mandatory when applying for livelihood or medical benefits.

Other exceptional cases

Even if you don't fall into the categories above, you can be recognized as unable to work if you are in a special situation like the following:

• A middle or high school student under the age of 20 (with a certificate of enrollment).
• A person assessed as having long-term care grades 1 to 5 (including cognitive support grades) under the "Long-Term Care Insurance for the Elderly Act."
• A person registered for a special exemption due to a rare or severe disease (cancer, severe burn patients).

"No one in my family can work" → Special provisions for 'work-incapable households'

If every member of a household is determined to lack work ability, they are entitled to very important special provisions that are on a completely different level from regular recipient households. These special provisions apply to all recipients of livelihood, medical, housing, and education benefits.

The precise criteria for work-incapable households

A work-incapable household doesn't just mean a household consisting only of the 'people without work ability' mentioned earlier. It also includes people who, while technically having work ability, are practically unable to work, as listed below. A household is recognized as work-incapable if all members fall into these categories.

• People who have work ability but are practically unable to work.
• Caretakers of preschool children: In cases where a child is not sent to a daycare or kindergarten and needs full-time care.
• Family caregivers: In cases where another family member who is immobile due to illness, injury, or disability needs full-time care or protection.
• Specific cases among those whose conditions are deferred.
• Pregnant women or women who have given birth within the last 6 months.
• People fulfilling legal obligations as social service agents or full-time reservists.

Key benefit: Greatly relaxed asset criteria

Many people worry about being disqualified from benefits if they own a house. Many people also think they have to sell all their assets to become a recipient. However, if every member of your household lacks work ability, the story changes completely. The most powerful benefit for work-incapable households is that the standard for the 'basic asset amount', which is deducted when converting assets to income, is significantly higher.

To receive this special provision, you must meet both of the following two conditions:

1. Basic condition (total assets): The household's net assets (total assets minus debt) must be within the following standard amount.
2. Additional condition: Financial assets must be below a certain amount (e.g., 54 million won in a major city) and you must not own a high-value car whose value is counted as 100% income.

This means that for typical households, a set basic asset amount is recognized as assets that are not counted, or assets that are allowed to be held without jeopardizing eligibility for basic livelihood security. When the special provision for work-incapable households is applied, this limit is raised as follows (the left side is the basic asset amount for regular households with work ability, and the right side is the special provision for work-incapable households):

• Seoul: 99 million won → 143 million won
• Gyeonggi: 80 million won → 125 million won
• Metropolitan cities/Sejong/Changwon: 77 million won → 120 million won
• Other regions: 53 million won → 91 million won

What this means is, if you don't exceed the special provision standard amount (e.g., 143 million won in Seoul), those assets are treated as 0 won and not converted to income. With no assets counted as income, the likelihood of becoming a recipient increases dramatically.

So, if you exceed this special provision standard, are you immediately disqualified? No, and this is important. According to the document, let's say a work-incapable household in Seoul has assets of 150 million won, exceeding the special provision standard (143 million won). In this case, the special provision cannot be applied, and the income conversion system is applied just as it would be for a regular household. This means the 143 million won is not deducted; instead, the regular household standard of 99 million won is deducted, and the income conversion rate is applied only to the remaining excess. You just can't receive the special benefit, but you are still reassessed on the same terms as a regular household, so disqualification is not automatic.

Other benefits are also available

In addition to relaxed asset criteria, other favorable conditions are applied, such as relaxed income criteria for duty to support, special provisions for North Korean defectors, and exemption from the collection of benefit costs.

What if you can work but don't? → The fate of a 'conditional recipient'

Failure to meet conditions? Only your livelihood benefit is suspended

If a recipient with work ability fails to meet the 'condition' of participating in a self-sufficiency project designated by the state without a legitimate reason, they will receive a penalty.

The core of the penalty is that the recipient's personal livelihood benefits, either in full or in part, may be suspended. The livelihood benefits for the entire household are not stopped; only the amount for that specific individual is deducted. The "personal livelihood benefit amount" is defined as the increase in livelihood benefit amount that results from adding one more household member to the same recognized income amount.

How much is deducted? (Calculation example)

You can understand this better with the examples from the document.

• Example 1: 4-person household / Monthly recognized income of 500,000 won / 1 person fails to meet conditions → Original livelihood benefit: 1,951,287 won – 500,000 won = 1,451,287 won → Amount paid based on the remaining 3 people: 1,608,113 – 500,000 = 1,108,113 won paid
• Example 2: 1-person household / Monthly recognized income of 150,000 won / The person fails to meet conditions → Original livelihood benefit: 765,444 – 150,000 = 615,444 won → Full suspension (0 won paid)

Summary

• In the Basic Livelihood Security Program, individuals aged 18-64 are initially considered able to work.
• You can be recognized as 'lacking work ability' through an evaluation if you have a special reason such as illness, disability, being a student, pregnancy, or caregiving.
• 'Work-incapable households,' where all members are recognized as lacking work ability, receive very powerful special benefits, such as a significant increase in the asset deduction amount.
• If a person with work ability violates the condition of participating in a self-sufficiency project, only their portion of the livelihood benefit is suspended, not the entire household's.
• In conclusion, knowing exactly whether you have 'work ability' or not, and whether your household qualifies for the 'work-incapable household' special provision, is a key to determining eligibility and receiving more benefits.