The Aviation Industry Breathes a Sigh of Relief as Employment Retention Subsidy Extended by 30 Days... 'Employment Insecurity' Remains Ongoing

On the 13th, overseas arrivals were waiting for transportation guidance at the arrival hall of Terminal 2, Incheon International Airport. The Korea Disease Control and Prevention Agency Central Disease Control Headquarters announced that as of midnight, the total number of confirmed domestic cases increased by 1,990 to 220,182. There were 1,913 domestic cases and 77 imported cases. Photo by Mo Honam munonam@

[Asia Economy Reporter Dongwoo Lee] As the government extends the paid leave employment retention subsidy support period, which was set to end at the end of this month, by 30 days, the aviation industry is relieved to maintain paid leave next month. However, amid uncertainties such as the recovery of international flight demand due to the prolonged impact of COVID-19, the industry is urging the government to prepare more active support measures, including additional extensions.

According to the aviation industry on the 16th, the Ministry of Employment and Labor held the 8th Employment Policy Deliberation Committee on the 14th and 15th and deliberated and approved a 30-day extension of the paid employment retention subsidy support period for special employment support sectors. The employment retention subsidy is a government support program for workers on paid leave, providing up to 270 days of support annually.

With the extension of the subsidy, domestic airlines including Korean Air, Asiana Airlines, Jeju Air, Jin Air, and T'way Air will be able to receive employment retention subsidies until next month.

The aviation industry is relieved by the decision to extend support this time, as it allows for partial extension of paid leave for employees. An aviation industry official said, "The aviation industry is still struggling due to COVID-19, and the government's decision to understand the industry's difficulties and extend the support period is a great help."

In preparation for the end of government support at the end of this month, low-cost carriers (LCCs) have completed the submission of applications to switch to unpaid leave.

However, there are concerns that a one-month extension will not be enough to alleviate employees' employment anxiety, as the aviation industry's downturn due to the prolonged COVID-19 situation is expected to continue until the end of the year. This is because the amount of government support received when switching to unpaid leave decreases from 70% to 50% of the existing monthly wage.

LCCs plan to submit applications again to the Ministry of Employment and Labor to receive unpaid leave in November and December if the employment retention subsidy ends next month. An LCC official said, "Since international flights have not yet returned to normal, we hope that additional policy fund support for the aviation industry will be provided in a timely manner."

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