Rep. Kim Hoe-jae Leads Multiple Bills Including Child Allowance Incentive for Multiple Children

Assemblyman Kim Hoe-jae: "Low birthrate caused by economic instability, economic support must be expanded"

Partial Amendment to Child Allowance Act, expanding coverage to under 12 years old

Partial Amendment to Employment Insurance Act, easing economic burden by updating parental leave benefits

[Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik] Kim Hoe-jae, a member of the Democratic Party of Korea (Yeosu-si Eul, Jeonnam), on the 11th, took the lead in proposing two bills, the 「Partial Amendment to the Child Allowance Act」 and the 「Partial Amendment to the Employment Insurance Act」, to alleviate the economic burden on parents in order to overcome low birth rates.

The ‘Partial Amendment to the Child Allowance Act’ proposed by Representative Kim grants a ‘multi-child incentive’ to the child allowance.

Representative Kim expanded the child allowance eligibility age to under 12 years old and provided additional monthly payments to multi-child families: 50,000 KRW for the second child and 100,000 KRW for the third child and beyond, in addition to the existing child allowance, to ease the economic burden on parents.

Meanwhile, the ‘Partial Amendment to the Employment Insurance Act’ raises the standard for parental leave benefits to the average wage under the Labor Standards Act, thereby broadly guaranteeing the livelihood of workers on parental leave.

Under the current law, the standard for parental leave benefits is the ordinary wage, which excludes bonuses, annual leave work allowances, and overtime, night, and holiday work allowances.

Additionally, the income replacement rate for parental leave was expanded from the current maximum of 80% of the ordinary wage to the average wage level for the first three months, and 80% of the average wage from the fourth month onward. This plan aims to improve the payment level of parental leave benefits to the actual wage level workers received before taking parental leave.

Representative Kim Hoe-jae said, “The number of births is sharply declining every year, and natural population decrease continues,” adding, “In February this year, the population decreased by 8,535, and the population cliff is gradually becoming a reality.”

He emphasized, “Low birth rates are a reality we feel firsthand and the top social issue that requires immediate response. According to the 2019 Korea Institute for Health and Social Affairs, adults aged 19 to 49 cited economic instability (37.4%) and the burden of childcare and education expenses (25.3%) as the main reasons for low birth rates, so expanding economic support is the key to solving the low birth rate problem.”

Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik hss79@asiae.co.kr

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