Issue Focus

The retirement mutual aid system for construction workers is introduced to promote the welfare of construction workers. However, it is not working properly and causing problems due to the current structure in which the entities reporting and paying retirement mutual aid funds is different: omission of retirement mutual aid funds for construction workers, incentive to under-report of retirement mutual aid funds by employers, and a shortage of retirement mutual aid funds due to asymmetric settlement system. In order to solve the problems of current system, this report proposes the introduction of a direct payment system for retirement mutual aid funds. This means converting the method from which the employer was in charge of both reporting and payment to the method in which the employer reports and the owner pays. The change of the payer can clarify the purpose of introducing the retirement mutual aid system and actively prevent damage to construction workers: first, the employer can faithfully report the work details of construction workers without worrying about the burden of additional expenses; and second, efficient monitoring of the operation of the retirement mutual aid system and establishment of a feedback system became easy. This report also presents three detailed solutions to solve the problem of current system and strengthen the effectiveness of the direct payment system: establishment of the retirement mutual aid fund rate standard for private construction; establishment of monitoring and feedback system; and phased improvement of the post settlement system.