Construction safety costs
Calculate Korean initial and revised safety costs. MOEL Notice No.2025-11.
Exclude indirect labour, expenses, general administration, profit and VAT from the assessment base. This calculator does not deduct scrap or by-products because the Notice does not prescribe such deductions. Check the awarding body’s rules to identify the appropriate cost-statement amounts.
Allocation to subcontractors is outside this calculator’s scope and follows the contract.
Reference table
These are basic criteria. Check scope, exceptions, qualifications and the original wording. Korean text in parentheses is authoritative.
Expand / collapse reference table
| Construction category | Assessment-base band | Rate (%) | Base amount (KRW) |
|---|---|---|---|
| Building construction | Below KRW 500 million | 3.11 | 0 |
| Building construction | KRW 500 million–below 5 billion | 2.28 | 4,325,000 |
| Building construction | KRW 5 billion or more | 2.37 | 0 |
| Building construction | Health-manager category | 2.64 | 0 |
| Civil construction | Below KRW 500 million | 3.15 | 0 |
| Civil construction | KRW 500 million–below 5 billion | 2.53 | 3,300,000 |
| Civil construction | KRW 5 billion or more | 2.6 | 0 |
| Civil construction | Health-manager category | 2.73 | 0 |
| Heavy construction | Below KRW 500 million | 3.64 | 0 |
| Heavy construction | KRW 500 million–below 5 billion | 3.05 | 2,975,000 |
| Heavy construction | KRW 5 billion or more | 3.11 | 0 |
| Heavy construction | Health-manager category | 3.39 | 0 |
| Special construction | Below KRW 500 million | 2.07 | 0 |
| Special construction | KRW 500 million–below 5 billion | 1.59 | 2,450,000 |
| Special construction | KRW 5 billion or more | 1.64 | 0 |
| Special construction | Health-manager category | 1.78 | 0 |
Basic calculation — initial allocation
- First determine the assessment base: direct materials + indirect materials + direct labour. Do not apply the rate to the entire contract value.
- Find the construction category and assessment-base band above. Multiply the entire base by that band’s rate and add its fixed base amount, if any. Do not split the amount into progressive bands.
- Enter supplied materials and finished goods separately for the inclusive/exclusive comparison. Select the health-manager rate where applicable. The basic examples exclude supplied items; examples A and B include client-supplied materials. None applies the separate health-manager rate.
Basic formula: assessment base × (percentage rate ÷ 100) + fixed base amount, under Notice Article 4(1) and Annex 1.
Compare both calculations for supplied materials and finished goods
Under the proviso to Notice Article 4(1), use the supplied-material and finished-goods value entered separately from the assessment base.
- Inclusive calculation = the amount calculated on (assessment base + supplied-material and finished-goods value)
- Exclusive calculation = the amount calculated on the assessment base alone × 1.2
- Allocation = at least the smaller of the inclusive and exclusive calculations
Apply the rate and fixed base amount for each calculation’s own assessment-base band. Adding supplied items can change the band, so the two calculations may use different rates and base amounts.
Calculation for design changes
Prior allocation + prior allocation × ((after-base − before-base) ÷ before-base). This is the proportional formula in Article 4(5) and Annex 1-3; increases to KRW 80 billion or more have separate recalculation conditions.
Worked examples
Building construction base 300,000,000 KRW: 300,000,000 KRW × 3.11% = 9,330,000 KRW
Building construction base 2,000,000,000 KRW: 2,000,000,000 KRW × 2.28% + 4,325,000 KRW = 49,925,000 KRW
Building construction base 6,000,000,000 KRW: 6,000,000,000 KRW × 2.37% = 142,200,000 KRW
Example A — Same rate band
Building construction, assessment base 3,000,000,000 KRW, client-supplied materials 1,000,000,000 KRW
- Inclusive calculation: 4,000,000,000 KRW × 2.28% + 4,325,000 KRW = 95,525,000 KRW
- Exclusive calculation × 1.2: (3,000,000,000 KRW × 2.28% + 4,325,000 KRW) × 1.2 = 87,270,000 KRW
- Minimum allocation: 87,270,000 KRW (allocate at least the smaller amount)
Example B — Different rate bands
Building construction, assessment base 400,000,000 KRW, client-supplied materials 200,000,000 KRW
- Inclusive calculation: 600,000,000 KRW × 2.28% + 4,325,000 KRW = 18,005,000 KRW
- Exclusive calculation × 1.2: (400,000,000 KRW × 3.11%) × 1.2 = 14,928,000 KRW
- Minimum allocation: 14,928,000 KRW (allocate at least the smaller amount)
Frequently asked questions
Is allocation recalculated for every design change?
Notice Article 4(5) and Annex 1-3 proportionally adjust the prior allocation. Distinguish the recalculation rule for increases to KRW 80 billion or more.
How are supplied materials and finished goods entered?
Enter the two fields separately under the Article 4(1) proviso. Avoid double counting. Allocate at least the smaller of the inclusive calculation and the exclusive calculation × 1.2.
Is VAT included in the assessment base?
The base uses direct materials, indirect materials and direct labour. Separate VAT and other non-base costs under the Notice Article 2 definition.
Does the tool allocate costs among subcontractors?
It calculates initial and revised amounts. Subcontractor distribution is outside its scope and must follow the contract.
Technical principle and management judgement
The assessment base comprises direct materials, indirect materials and direct labour. Distinguish it from the total contract amount. Compare inclusive and exclusive calculations for supplied items. Allocate at least the calculated minimum; eligible expenditure must separately meet Article 7 of the Korean Notice.
Use assessment bases from the contracts before and after each design change. The revised allocation feeds the next stage. Check the recalculation rule for increases to KRW 80 billion or more. For further increases when already above that threshold, compare both formulas with the awarding body and confirm the contractual amount before continuing.
Amounts are rounded up to whole won, with unrounded values also shown. This is a display policy, not a statutory rounding rule; check the awarding body’s contract rules.
Standards for Calculating and Using Occupational Safety and Health Management Expenses in Construction (건설업 산업안전보건관리비 계상 및 사용기준) · Ministry of Employment and Labor Notice No. 2025-11 (고용노동부고시 제2025-11호) · Applicable criteria: MOEL Notice No. 2024-53, Annex 1
Original sources and applicable legislation
Ministry of Employment and Labor Notice No. 2025-11 (고용노동부고시 제2025-11호)
Related reading
Checks and records before work
Choose the construction category from the contract and actual scope. Identify which parts of the contract qualify as the calculation base under the notice. Check the relevant provisions separately when materials are furnished by the client or other cost items are included. Record the applicable contract date and schedule of costs so the estimator and contract reviewer work from the same documents.
If a design change adds work, record the construction category and cost base used for the original contract. Then check the changed amounts and applicable rules separately. Preserve the before and after inputs, rule version and document supporting the change. Coordinate with the contract reviewer before confirming the allowance when the change date or transition provisions affect the result.
Treat the estimated allowance and the eligibility of an individual expenditure as separate checks. Keep the reference date, notice, construction category and amounts used. If the scope includes several types of construction or the cost items are unclear, obtain the supporting records first. Retain enough evidence to identify the same row in the official appendix after the next design change.