The government will raise the employment insurance premium by zero-point-two percentage points from next July as well as cut back on spending as funds are being depleted due to the pandemic.

The Labor Ministry said Wednesday that a related committee has approved a set of measures to boost the financial integrity of the employment insurance fund.

The ministry noted the dire fiscal state as job-related spending sharply increased during the pandemic, while measures to address youth unemployment and the low birthrate also continued.

It said that by the year's end, about four-point-six trillion won is expected to remain in reserves, down by more than two trillion from the end of last year.

In this light, the insurance premium will be raised to one-point-eight percent per worker from July from the current one-point-six. With this alone, the ministry expects an additional three trillion won in revenue.

Several subsidy programs will also be temporarily suspended or reduced to cut back on spending. Through these measures, the ministry predicts reserve funds to reach around eight-point-five trillion won by 2025 and thereby achieve financial soundness.