Employment security incentive during childbirth and childcare (parental leave subsidy and subsidy for reducing 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, if an employee uses parental leave, the maximum amount of one year shall be paid, and if there is a remaining period of childcare leave that does not reach one month, the number of days is divided by the total number of days in the month. [Article (18) and Annex Table 5(1), 「Regulations on the application and payment of employment creation incentives and employment security incentives」]
Classification
|
Annual total
|
Payment for 1 month
|
Parental leave
|
Within 12 months*
|
8.7 million won
|
After 2 million won for the first 3 months, 300,000 won per month for parental leave
|
Over 12 months
|
3.6 million won
|
300,000 won
|
* Applicable to children under 12 months of age (including parental leave during pregnancy) who are granted parental leave of 3 months or longer.
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 payments shall be made up to one year (however, if there is an unused period during parental leave, the period is added), and if there is a period of reduced working hours remaining in the childcare period that does not reach one month, the number of applicable days is calculated by dividing by the total number of days in the month. [Article 18 and Annex Table 5(2), 「Regulations on the application and payment of employment creation incentives and employment security incentives」]
Classification
|
Annual total
|
Payment for 1 month
|
Reduction of working hours during the childcare period
|
Basic
|
3.6 million won
|
300,000 won
|
Incentive application
|
4.8 million won
|
400,000 won
|
※ 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』.
Employment security incentives during childbirth and childcare (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, or childcare leave, etc. for at least 30 days and employs 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 for at least 30 days from the 60th day before the beginning of a period of maternity leave, miscarriage or stillbirth leave, childcare leave, etc. (or the 60th day before the beginning of a period of maternity leave if miscarriage or stillbirth leave, childcare 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 in her place, and who continuously employ the substitute employee after the employee in question finishes working reduced working hours and takes maternity leave, miscarriage or stillbirth leave, or childcare leave, etc. In such cases, the period of employment 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 after substitute employees are newly employed) for the purpose of employment adjustment during the period from three months before employing a new employee as a substitute to one year thereafter (where the employment period of the relevant substitute employee is less than one year, referring to the period until the termination of the relevant employment relationship).
Payment standards for the subsidy for substitute workers
When an employer allows a female worker during childbirth and childcare to reduce her working hours, etc. and hires a replacement worker, the replacement worker shall be paid as follows. If there is a remaining replacement hiring period after less than one 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」]
Classification
|
Amount paid for one month during the takeover period
|
Payment for 1 month
|
Priority support target companies
|
1.2 million won
|
800,000 won
|
※ The amount of the subsidized labor costs for substitute workers shall not exceed 80/100 of the wage paid by the employer during the period covered by the payment.
※ For more information on the subsidy for substitute workers during childbirth, please visit this site (http://easylaw.go.kr) 『Work and Family Life』.