Ministry of Employment: "Family Care Leave Users Supported 50,000 Won per Day... Maximum 500,000 Won Combined for Couples"

Government Announces 'Comprehensive COVID-19 Response Measures'
Employment Retention Subsidy Support Ratio to Be Increased

Minister Lee Jae-gap of the Ministry of Employment and Labor / Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kim Bo-kyung] The government has decided to provide 50,000 KRW per day per person to workers who took family care leave due to the novel coronavirus infection (COVID-19).

The Ministry of Employment and Labor announced on the 28th in its 'Comprehensive COVID-19 Response Measures' that "a temporary support fund of 50,000 KRW per day per person will be provided to workers who used family care leave."

The support will be provided ▲ to workers raising children aged 8 or younger or in the 2nd grade of elementary school or below ▲ at 50,000 KRW per day (up to 500,000 KRW combined for couples) ▲ for up to 5 days (up to 10 days for single-parent workers) ▲ until the COVID-19 situation ends.

Amid the explosive increase in applications for employment retention subsidies due to COVID-19, the ratio of support for leave and suspension allowances paid by employers will also be raised. For priority support enterprises, the current ratio will increase from two-thirds to three-quarters, and for other companies, from one-half to two-thirds.

Accordingly, if an employer pays 1,400,000 KRW in suspension allowance to a worker with a monthly salary of 2,000,000 KRW, the company's burden per person will decrease by 120,000 KRW from the previous 470,000 KRW to 350,000 KRW (based on priority support enterprises).

This measure will be applied temporarily until July 31. To receive the support, employers must implement employment retention measures such as paid leave or suspension and apply for the support monthly. The increased support will be paid starting from March.

[Image source=Yonhap News]

The government will consider designating special employment crisis industries, focusing on sectors most severely impacted by COVID-19, such as travel and tourism accommodation industries.

Currently, applications for designation have been received from associations related to the tourism industry. The Ministry of Employment and Labor will conduct a comprehensive review of the economic, industrial, and employment conditions of the relevant industries, including changes in the number of insured employees under employment insurance, and decide on the designation of special employment industries through deliberation by the Employment Policy Council.

Industries designated as special employment support sectors will benefit from eased requirements and increased support levels for employment retention subsidies, job transition, reemployment and startup support, and other employment stability and unemployment livelihood stabilization measures.

Additionally, loans for livelihood stabilization due to COVID-19 will be significantly expanded for low-income workers and workers in special types of employment, with income eligibility criteria relaxed to provide broader support.

The income eligibility criteria will be relaxed from the current standard of two-thirds or less of the median income of a three-person household (2,590,000 KRW this year) to the median income or less of a three-person household (3,880,000 KRW this year) on a monthly average income basis.

Meanwhile, the Ministry of Employment and Labor plans to proactively respond by significantly expanding the number of people eligible for wage arrears support and free legal aid, anticipating an increase in wage arrears due to worsening business difficulties caused by COVID-19.

This content was produced with the assistance of AI translation services.