Ministry of Employment Extends Work-Life Balance Job Incentive Increase Until Year-End

With the implementation of the 52-hour workweek, on the first working day, the 2nd, citizens are walking home near Gwanghwamun Intersection in Seoul. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kim Bo-kyung] The support period for the increased 'Work-Life Balance Job Incentive' paid to workplaces that reduce working hours has been extended until the end of this year.

The Ministry of Employment and Labor announced on the 4th that the period for raising the support level of the Work-Life Balance Job Incentive (working hours reduction incentive), which was introduced in response to the COVID-19 pandemic, will be extended from the original end of June to the end of December.

The Work-Life Balance Job Incentive is a system that supports employers with indirect labor costs, wage reduction compensation, and replacement workforce wages when the prescribed weekly working hours are reduced to 15-35 hours.

With this extension, small and medium-sized enterprises and mid-sized companies will receive support of 400,000 KRW per worker per month for reducing prescribed working hours until the end of this year.

Additionally, the requirement to introduce the working hours reduction system through collective agreements or employment rules to receive support has been relaxed to allow support based solely on individual employment contracts.

This is intended to reflect personal circumstances such as family care, pregnancy, studies, or health, as there is a high demand among workers to reduce working hours for these personal reasons.

As the demand for reduced working hours among workers has increased due to COVID-19, support for the Work-Life Balance Job Incentive has also risen.

In April, 2,316 workers were supported; in May, 3,792; and in June, 6,192, showing a significant increase compared to the average monthly support of 1,781 workers from January to March.

Looking at support by company size, 5,234 workers (29.7%) were supported in workplaces with 300 or more employees, 4,224 workers (23.9%) in workplaces with 30 to 300 employees, and 8,185 workers (46.4%) in workplaces with fewer than 30 employees.

By industry, public administration, defense, and social security administration (3,153 workers, 17.9%) had the highest support, followed by manufacturing (3,013 workers, 17.1%), and health and social welfare services (2,410 workers, 13.7%).

The Work-Life Balance Job Incentive can be applied for monthly by submitting proof of reduced working hours through the Employment Insurance website (www.ei.go.kr), by fax to the Employment Center’s Corporate Support Department (team), or by visiting in person.

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