Korea Workers' Compensation Disability Grades Explained: Grades 1–14, Criteria & Benefit Calculation

What Is a Workers' Compensation Disability Grade?

When a worker has received treatment for a work-related injury or illness but is left with permanent physical impairment, the Korea Workers' Compensation & Welfare Service (근로복지공단) classifies the degree of that impairment into a disability grade (장해등급) and pays compensation accordingly. The legal basis is Article 57 of the Industrial Accident Compensation Insurance Act (산업재해보상보험법 제57조) and Schedule 6 of the same Act's Enforcement Decree (시행령 별표 6).

Disability grades are divided into Grade 1 through Grade 14 — 14 levels in total. The lower the number, the more severe the impairment, and the higher the level of compensation.

Key Criteria by Grade

Disability grades are assessed using detailed criteria broken down by body part. Representative examples include:

• Grade 1: Both eyes are blind, or both arms are lost at or above the elbow joint, etc.
• Grade 7: The thumb and index finger of one hand are lost, or one ear is completely deaf, etc.
• Grade 14: The little finger of one hand is lost, or one tooth is lost, etc.

Schedule 6 of the Enforcement Decree sets out dozens of detailed criteria organized by body system — eyes, ears, nose, arms, legs, spine, nervous system, and more.

How Disability Benefits Are Paid

The payment method varies depending on the disability grade.

The disability compensation annuity is calculated by multiplying the average wage by the number of days prescribed for each grade: Grade 1 pays 329 days' worth per year, and Grade 7 pays 138 days' worth per year. The lump-sum disability compensation is paid all at once, ranging from 450 days' worth for Grade 8 to 55 days' worth for Grade 14 (per Schedule 6 of the Enforcement Decree of the Industrial Accident Compensation Insurance Act).

Note: These are statutory minimums. Contractual terms may differ, but they cannot fall below the statutory standard.

Assessment Procedure

1. Conclusion of treatment (symptom fixation): When further treatment is no longer effective, the attending physician confirms that symptoms are fixed.
2. Filing a disability benefit claim: The worker submits a disability benefit claim form and medical certificate to the Korea Workers' Compensation & Welfare Service.
3. Corporation review: The Corporation determines the grade based on advisory physician opinions and notifies the worker.
4. Appeal procedure: If the worker objects to the decision, a review request (심사청구) may be filed within 90 days of the notification date.

Key Practical Points to Watch

First, a disability grade can only be assessed after treatment has concluded. During treatment, temporary disability benefits (휴업급여) are paid — these must not be confused with disability benefits (장해급여).

Second, if impairment remains in two or more body parts, the grade may be raised under the adjustment provisions of Article 53 of the Enforcement Decree (시행령 제53조). It is therefore essential to list every affected body part on the claim form without omission.

Third, disability benefits are subject to a 5-year statute of limitations under Article 112 of the Industrial Accident Compensation Insurance Act (산재보험법 제112조). Failing to act after treatment concludes can result in losing your rights, so it is important to file promptly.

Learn More on Byro

If you have questions about calculating the number of workers at a workplace or whether a business is covered under workers' compensation, try the regular employee count calculator on Byro (workbylaw.com). You can also use the AI search feature to quickly resolve practical questions such as whether a workplace is exempt from industrial accident insurance coverage and what documents are required for a disability benefit claim.

This article is for informational purposes only and does not constitute legal advice. For specific cases, consult a certified labor attorney (노무사) or lawyer.