Subsidy for child-care leave and subsidy for reduced working hours during childrearing
Eligible recipients of employment security incentives for childbirth and childcare
- The Minister of Employment and Labor shall pay incentives for employment security during the period of childbirth and childcare (parental leave subsidy and subsidy for reducing working hours during childrearing) to any of the following business owners who grant an insured employee a period of childcare leave or shortens the working hours (hereinafter “parental leave”) of an insured employee by at least 30 days. (Subparagraph 2, Article 29(1), 「Enforcement Decree of the Employment Insurance Act」)
Standards for the payment of parental leave subsidies
- Employers receive childcare leave subsidies in the amounts per worker shown below. In this case, the childcare leave subsidy is paid for a maximum period of 1 year and 6 months, and if the eligible subsidy period does not reach one full month, the remaining days are divided by the total number of days in the month in which the remaining days begin (Article 18 and Subparagraph 1 of attached Table 5 of 「Regulations on the Application and Payment of Employment Creation Incentives and Employment Security Incentives」).
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Classification
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Annual total
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Payment for 1 month
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Parental leave
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Within 12 months*
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8.7 million won
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After 2 million won for the first 3 months, 300,000 won per month for parental leave
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Over 12 months
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3.6 million won
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300,000 won
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Incentive Applied (Additional Subsidy)**
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1.2 million won
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100,000 won
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* Applicable to children under 12 months of age (including parental leave during pregnancy) who are granted parental leave of 3 months or longer.
** When granting parental leave to male employees, an additional 100,000 won per month will be provided for the first to third cases at each workplace.
Standards for the payment of subsidies to reduce working hours during childcare
- Employers receive subsidies for reducing working hours during childcare in the amounts per worker shown below. In this case, the subsidies for reduced working hours during childcare are paid for a maximum period of 1 year, which may be extended up to 3 years if there is an unused period during parental leave, and if the eligible subsidy period does not reach one full month, the remaining days are divided by the total number of days in the month in which the remaining days begin. [Article 18 and Attached Table 5(2), 「Regulations on the Application and Payment of Employment Creation Incentives and Employment Security Incentives」]
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Classification
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Annual total
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Payment for 1 month
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Reduction of working hours during the childcare period
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Basic
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3.6 million won
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300,000 won
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Incentive application
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1.2 million won
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100,000 won
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※ If the employer of a workplace that has never used reduced working hours for childcare allows for a reduction of working hours for childrearing for the first time, an additional monthly payment of 100,000 won shall be paid until the third case.
※ For more information on the support for employment security incentives during childbirth and childcare, please visit this site (http://easylaw.go.kr) 『Work and Family Life』.
Subsidy for substitute workers
Targets of subsidy for substitute workers
- Incentives shall be paid for employment security during the period of childbirth and childcare to any of the following business owners who grant or allow an insured employee a period of maternity leave, miscarriage or stillbirth leave, parental leave, etc. for at least 30 days and employ a substitute employee or use a dispatched worker as a substitute employee. (Subparagraph 3, Article 29(1), 「Enforcement Decree of the Employment Insurance Act」)
· Any of the following cases:
√ Business owners shall continuously employ a new substitute employee or use a dispatched worker as a substitute employee for at least 30 days from the 60th day before the beginning of a period of maternity leave, miscarriage or stillbirth leave, or parental leave, etc. (or 2 month before the beginning of a period of maternity leave if miscarriage or stillbirth leave, or parental leave, etc. begins consecutively after the maternity leave);
√ Business owners who allow an insured employee to work reduced hours during her pregnancy for more than 60 days and employ a substitute employee or use a dispatched worker as a substitute employee in her place, and who continuously employ or use the substitute employee after the employee in question finishes working reduced working hours and takes maternity leave, miscarriage or stillbirth leave, or parental leave, etc. In such cases, the period of employment or use of the substitute employee’s employment shall be at least 30 days;
· Business owners shall not sever the employment relationship with any employee (excluding employees employed or used after substitute employees are newly employed or used) for the purpose of employment adjustment during the period from three months before employing or using a new employee as a substitute to one year thereafter (where the employment or use period of the relevant substitute employee is less than one year, referring to the period until the termination of the relevant employment or use relationship).
Payment standards for the subsidy for substitute workers
- When an employer allows a female worker to take maternity leave, miscarriage or stillbirth leave, or parental leave, etc. and hires or uses a replacement worker, 1.2 million won per month shall be paid for each replacement worker. In this case, the same amount of 1.2 million won per month shall be paid during the handover period (up to two months), and if the eligible subsidy period does not reach one full month, it is calculated by dividing the number of days by the total number of days in the month. [Article 18 and Annex Table 5(3), 「Regulations on the Application and Payment of Employment Creation Incentives and Employment Security Incentives」]
· The amount of the subsidized labor costs for substitute workers shall not exceed 80% of the monthly wage paid by the employer or the cost of dispatched labor during the period covered by the payment.
· In addition, for substitute workers employed for reduced working hours during childcare, the subsidy is calculated in proportion to the hours worked as a substitute within the scope of reduced working hours (the same criteria apply during the takeover period).
※ For more information on the subsidy for substitute workers during childbirth, please visit this site (http://easylaw.go.kr) 『Work and Family Life』.
Subsidy for Sharing Work Duties
Eligibility for Subsidy for Sharing Work Duties
- The subsidy for sharing work duties will be provided to employers of priority-support enterprises who have allowed or granted employees parental leave, etc. for more than 30 days, designated a worker (hereinafter referred to as "the duty sharer") to perform all or part of the duties of the employee on leave, and provided financial support to that duty sharer (subparagraph 4 of Article 29(1) of the 「Enforcement Decree of the Employment Insurance Act」).
- However, if the duty sharer is designated for an employee on reduced working hours during childrearing, the reduced working hours of the employee on reduced working hours during childrearing must be at least 10 hours per week (proviso to subparagraph 4 of Article 29(1) of the 「Enforcement Decree of the Employment Insurance Act」).
Criteria for Payment of the Subsidy for Sharing Work Duties
- If the employer has provided financial support to the duty sharer, the subsidy will be paid at 100% of the amount provided to the duty sharer, up to a limit of KRW 200,000 per month per employee on parental leave, etc. The subsidy cannot exceed the amount paid by the employer to the employee for the purpose of sharing duties (Article 18 and subparagraph 4 of attached Form 5 of the 「Regulations on Applications and Payments for Employment Creation and Employment Security Incentives」).
※A maximum of five duty sharers can be designated per employee on reduced working hours.
· However, if the employer has received monetary compensation (such as a subsidy or incentive money) for the designation of duty sharers or the employment or use of substitute workers under 「Employment Insurance Act」 or other laws, the remaining amount after excluding that compensation will be provided.
· If the employee designated as a duty sharer is one that is eligible for subsidy or incentive money (such as the benefit for reduced working hours for childrearing, work-life balance job incentive money, or subsidy for substitute workers), he or she will be excluded from eligibility.
※ If the eligible subsidy period does not reach one full month, the remaining days are divided by the total number of days in the month in which the remaining days begin.