Corporate Welfare Fund Contribution Usage Limit Expanded to 90%... "Aiming to Reduce Welfare Gap Between Large and Small-Medium Enterprises"

Deliberation and Resolution of Partial Amendment to the Enforcement Decree of the Basic Labor Welfare Act at the Cabinet Meeting

The usage limit of contributions to the in-house Workers' Welfare Fund Corporation will be expanded from the existing 80% to 90%. In cases where large enterprises use the in-house Workers' Welfare Fund for welfare projects for subcontracted workers, up to 90% of the contributions can be used.

The Ministry of Employment and Labor announced on the 25th that the amendment to the "Enforcement Decree of the Workers' Welfare Basic Act," which includes this content, was reviewed and approved at the Cabinet meeting.

The in-house Workers' Welfare Fund is a fund established and operated by the employer using part of the business profits as resources, aimed at promoting workers' welfare projects such as stabilizing workers' livelihoods and enhancing welfare.

The amended enforcement decree expands the usage limit of contributions from 80% to a maximum of 90% when part of the contributions for the relevant fiscal year of a large enterprise's in-house Workers' Welfare Fund is used for welfare projects for workers belonging to companies directly subcontracted by the business or dispatched workers. Contributions refer to the amounts contributed by the employer or others as resources for the in-house Workers' Welfare Fund.

Additionally, the requirements for in-house Workers' Welfare Fund corporations supporting the welfare of subcontracted workers will be relaxed. When supporting the welfare improvement of subcontracted workers, the size requirement of the in-house Workers' Welfare Fund corporation that can use the principal amount, called "basic assets," accumulated in the fund from received property, will be eased from "corporations with basic assets of 3 million KRW or more per affiliated worker" to "corporations with 2 million KRW or more."

The scope of usage for the basic assets of the in-house Workers' Welfare Fund will also be expanded. When supporting the welfare improvement of subcontracted workers, the existing usage limit of basic assets was 20% (30% in cases of disaster or management crisis), but it will be expanded to allow usage up to 30% regardless of disaster or management crisis.

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