Next Year's Ministry of Employment and Labor Budget 35.6 Trillion Won... Expansion of Job-Seeking Allowance and Employment Retention Subsidies

Increased by 5 Trillion Compared to This Year's Original Budget... 167.8 Billion More Than Government Proposal

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] The Ministry of Employment and Labor's budget for next year has been finalized at 35.6487 trillion won, an increase of about 5 trillion won compared to this year. Among this, the budget for unemployment benefits reaches 11.3 trillion won. New support programs for essential workers such as sanitation workers, courier and delivery workers, and the National Employment Support System will be established.

On the 2nd, the National Assembly plenary session approved the 2021 budget under the jurisdiction of the Ministry of Employment and Labor at 35.6487 trillion won. This is an increase of 167.8 billion won compared to the originally submitted government budget proposal. Compared to this year's main budget, it is an increase of 5.1347 trillion won.

During the National Assembly review process, expansions of employment retention subsidies, protection and support measures for essential workers, and strengthening of industrial accident prevention at small construction sites were additionally reflected.

The National Assembly and government recently set the unemployment benefits budget at 11.3 trillion won, considering the unemployment crisis caused by the novel coronavirus disease (COVID-19) and the application of employment insurance for artists. This amount can support a total of 1.64 million people.

The employment retention subsidy, which supports the efforts of labor and management to maintain jobs, was decided at 1.3728 trillion won (supporting 780,000 people).

The budget for the Youth Additional Employment Incentive, which supports companies with 9 million won annually for three years per youth hired, increased by about 200 billion won from this year to reach 1.2018 trillion won. The budget for the Youth Tomorrow Savings Deduction program, which helps young workers accumulate a lump sum, was set at 1.4017 trillion won.

The Youth Digital Job program, which supports wages for small and medium-sized enterprises and mid-sized companies hiring youth in IT-utilized jobs, was allocated 467.6 billion won (supporting 50,000 people).

The program supporting pre- and post-childbirth benefits for 200 artists and 1,700 special-type workers is expected to use 1.5915 trillion won.

The Ministry of Employment and Labor plans to newly implement the National Employment Support System targeting low-income groups and youth who are outside the employment safety net. It is divided into Type 1 (828.6 billion won), which provides job-seeking promotion allowances of 500,000 won per month for up to six months, and Type 2 (327.2 billion won), which provides employment support services.

A new support project for health checkups and other services to strengthen health management for essential workers will be established with a budget of 14.7 billion won. Additionally, 46 billion won will be spent on improving the treatment of home care service workers exposed to complex difficulties such as income reduction and infection risk. Support will be provided to 90,000 people at 500,000 won per person.

Considering the impact of COVID-19, the budget for wage claim compensation was decided at 669.8 billion won, an increase of 230 billion won compared to the previous year. The support target is 135,000 people, an increase of 40,000 from the previous year. The budget for job stability funds was set at 1.2966 trillion won, considering next year's minimum wage increase rate (1.5%).

In addition, the Ministry of Employment and Labor plans to expand investment in people such as digital and new technology workforce training and support for non-face-to-face training and work in response to the post-COVID-19 era next year.

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