3-Month Support of 2 Million KRW per Employee per Month for SMEs Granting Parental Leave

Ministry of Employment Introduces Childcare Leave Subsidy... Worker Salary Budget Up 26.5%

In the "Korea Dad Childcare Photo Contest" jointly hosted by the Ministry of Gender Equality and Family and the Embassy of Sweden in Korea, Kim Dae-han won the top prize with his photo titled "Fathers Used to Style Their Hair Too." (Image source=Yonhap News)

[Sejong=Asia Economy Reporter Moon Chaeseok] Next year, small and medium-sized enterprises (SMEs) that grant parental leave to employees will receive a government subsidy of 2 million KRW per month per employee on parental leave for the first three months of the leave.

According to the Ministry of Employment and Labor on the 5th, the 2022 budget bill passed by the National Assembly plenary session on the 3rd included a budget of 112.1 billion KRW for parental leave support. Most of the parental leave-related budget for next year increased compared to this year, and the parental leave subsidy for SMEs was newly established this time.

SMEs employing workers who take parental leave for children under 12 months of age will receive 2 million KRW per month per such employee for the first three months, and thereafter 300,000 KRW per month. SMEs employing workers who take parental leave for children over 12 months of age will receive 300,000 KRW per month per such employee. The number of employees on parental leave is estimated at 18,823. The benefits of this support go to the SMEs employing these workers.

However, with the establishment of this new parental leave subsidy, the support previously given to employers who hired replacement workers while granting parental leave to employees (up to 800,000 KRW per month) will be abolished.

The budget for salaries paid to employees on parental leave next year is 1.5807 trillion KRW, a 26.5% increase from this year's 1.2486 trillion KRW. The number of employees expected to receive parental leave pay next year is estimated at 128,000.

To promote fathers' use of parental leave, if both parents take parental leave for a child under 12 months of age, each will receive 100% of their ordinary wage (up to 3 million KRW per month) for the first three months. Until now, only one parent received 100%, and the spouse received 80%.

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