Target of benefits for the reduced working hours for a childcare period

Benefit requirements
- The Minister of Employment and Labor shall pay benefits for any reduced working hours for a childcare period to an employee who satisfies all the following requirements among the insured who are eligible for reduced working hours for at least 30 days (excluding any period overlapping with maternity leave before and after childbirth under Article 74 of the Labor Standards Act) (Article 73-2 (1) of the Employment Insurance Act).
· The sum total of the insured unit period (Article 41 of the Employment Insurance Act) before the beginning of reduced working hours for a childcare period shall be not less than 180 days.
· The insured spouse shall not have more than 30 days of childcare leave or reduced working hours of more than 30 days for the same child.
Application of benefits for the reduced working hours for a childcare period

How to apply
- Any employee who wishes to receive the benefits for the reduced working hours for a childcare period shall apply to the head of the local employment security center responsible for supervising the area in which the employee lives or works (Article 73-2 (4) of the Employment Insurance Act, former part and Subparagraph 2 of Article 116 (1) of the Enforcement Rule of the Employment Insurance Act).
· Application for reduced working hours for childcare period benefits (attached Form 100 of the Enforcement Rule of the Employment Insurance Act)
· One copy of the confirmation of reduced working hours for a childcare period (limited to the first time) (attached Form 102 of the Enforcement Rule of the Employment Insurance Act)
· One copy of the evidentiary materials (wage ledgers, employment contracts, etc.) verifying working conditions, such as fixed working hours before and after the reduced working hours during the childcare period
· One copy of the data confirming the money and valuables paid by the employer during the reduction of working hours for a childcare period (it shall be possible to check the paid money and valuables separately because of work exceeding the fixed working hours)
- Benefits for the reduction of working hours for a childcare period shall be applied on a monthly basis, and in this case, the application for the payment of childcare benefits for the reduced working hours for a childcare period during the relevant month shall be made by the end of the following month (Article 116 (2) of the Enforcement Rule of the Employment Insurance Act).
- In the case of applying for the payment of benefits for reduced working hours for a childcare period, if he/she has transferred to another company during the reduced working hours for a childcare period or has engaged in any of the following employment, he/she shall enter such fact in the application submitted for the first time after the date of transfer or employment (Articles 104-3 (2) and 96 of the Enforcement Decree of the Employment Insurance Act, Article 70 (3) of the Employment Insurance Act, and Article 116 (3) of the Enforcement Rule of the Employment Insurance Act).
· Where the fixed working hours for 1 week are at least 15 hours
· Where the money and valuablesreceived in return for providing income or labor through self-employment is atleast KRW 1.5 million per month (proviso to Article95(1) of the Enforcement Decree of the Employment Insurance Act)

Time limit for application
- A person who wishes to receive childcare leave benefits shall apply between 1 month from the start date of the childcare leave and 12 months after the end of the period of leave (the main body of Article 73-2 (2) of the Employment Insurance Act).
- However, those who were unable to apply for reduced working hours for a childcare period for the following reasons during the period can apply within 30 days after the reason ends (proviso to Article 73-2 (2) of the Employment Insurance Act and Articles 104-2 (1) and 94 of the Enforcement Decree of the Employment Insurance Act).
· A natural disaster
· Illness or injury of the beneficiary or his/her spouse
· Illness or injury of an ascendant or descendant of the beneficiary or his/her spouse
· Obligatory military service under the Military Service Act
· Arrest or execution of the sentence because of an alleged crime
Amount of benefits for the reduced working hours for a childcare period

Amount paid
- The amount of benefits for the reduced working hours for a childcare period shall be calculated by the following formula (Article 73-2 (3) of the Employment Insurance Act, the main body of Article 104-2 (2) of the Enforcement Decree of the Employment Insurance Act).
1. Reduction of the first 5 hours of each week
The amount equivalent to the monthly ordinary wage calculated pursuant to the Labor Standards Act based on the start date of reduced working hours for a childcare period (KRW 2 million shall be the upper limit, and KRW 500,000 shall be the lower limit)
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5
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Fixed working hours before the reduction
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2. Reduction of the remaining working hours
The amount equivalent to 80% of the monthly ordinary wage calculated pursuant to the Labor Standards Act based on the start date of reduced working hours for a childcare period (KRW 1.5 million shall be the upper limit, and KRW 500,000 shall be the lower limit)
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×
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Fixed working hours before the reduction Fixed working hours after reduction 5
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Fixed working hours before the reduction
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- However, if the period eligible for payment of benefits for reduced working hours for the childcare period is less than 1 month, it shall be calculated by multiplying the amount calculated by dividing the amount according to the formula above by the number of days using the reduced working hours in that month (Article 73-2 (3) of the Employment Insurance Act and proviso to Article 104-2 (2) of the Enforcement Decree of the Employment Insurance Act).
Restriction on the payment of benefits of reduced working hours for a childcare period, etc.

Restriction on the payment of benefits
- The payment of benefits shall be discontinued from the date on which an insured employee departs from his/her employment or obtains another job during a period in which benefits are received (Article 74 (2), 73 (1) of the Employment Insurance Act).
- If an employee has found any of the following employment during reduced working hours for a childcare period, benefits will not be paid for the period of employment (Articles 74 (2), 73 (2), and 70 (3) of the Employment Insurance Act and Article 116 (3) of the Enforcement Rule of the Employment Insurance Act).
· Where the fixed working hours for 1 week are at least 15 hours
· Wherethe money and valuables received in return for providing income or laborthrough self-employed business is at least KRW 1.5 million (proviso to Article 95(1) of the Enforcement Decree of theEmployment Insurance Act)
- Those who received or intends to receive reduction benefits by fraud or other improper means shall not receive reduction benefits from the date he/she received or intends to receive such benefits (Article 74 (2), the main body of 73 (4) of the Employment Insurance Act).
· However, if the requirements for the reduction of working hours are met after the reduced working hours related to the benefits, reduced working hours will be paid according to the new requirement (Article 74 (2) and proviso to Article 73 (4) of the Employment Insurance Act).
- The scope of benefits for the reduced working hours of a person who has not received or intends to receive reduction benefits by falsely stating that he/she has been employed during the shortened period may be determined differently pursuant to Article 118-2 of the Enforcement Rule of the Employment Insurance Act, in consideration of the number of violations (Articles 74 (2) and 73 (5) of the Employment Insurance Act).

Reduction of benefits for reduced working hours
- Where the sum of money and valuables (money and valuables paid for reduced working hours for a childcare period) and the benefits paid by the employer on a monthly basis during the reduction period exceeds the ordinary wages according to the following classifications, the excess amount shall be deducted from the benefits (Article 74 (2) of the Employment Insurance Act and Article 104-4 of the Enforcement Decree of the Employment Insurance Act).
1. Where there is no increase in ordinary wages during reduced working hours for a childcare period: Monthly ordinary wages based on the month immediately preceding the start date of reduced working hours
2. Where the ordinary wage is raised during reduced working hours for a childcare period
A. Until the day before the increase in ordinary wages: The monthly ordinary wage based on the month immediately preceding the start date of reduced working hours for a childcare period
B. After the increase in ordinary wages: Monthly ordinary wages based on the date of increase in ordinary wages