If Both Parents Take Parental Leave, They Can Receive Up to 9 Million Won per Month... 100% of Ordinary Wages for the First 6 Months

'Partial Amendment to Subordinate Laws of the Employment Insurance Act and the Employment and Industrial Accident Insurance Premium Collection Act' Legislative Notice
'Parental Childcare Leave System' Expanded and Reorganized
Monthly Maximum Limit Increased from 3 Million to 4.5 Million Won

Starting next year, when parents with children under 18 months old take parental leave simultaneously or sequentially, each parent's parental leave pay for the first 6 months will be increased from 80% to 100% of their ordinary wage. The monthly cap will also be raised to a maximum of 4.5 million KRW. This is part of measures to address low birth rates.

The Ministry of Employment and Labor announced on the 6th that it will give prior notice of partial amendments to subordinate laws of the Employment Insurance Act and the Employment and Industrial Accident Insurance Premium Collection Act by the 15th.

First, to encourage joint parenting by parents and to spread a culture of shared caregiving, the '3+3 Parental Leave System for Parents' will be expanded and reorganized into the '6+6 Parental Leave System for Parents.' This is a follow-up measure to the low birth rate policy announced at the Low Fertility and Aging Society Committee chaired by the President in March this year.

The eligible child age for use will be extended from within 12 months to within 18 months after birth, and the special application period will be expanded from the first 3 months to 6 months. When parents use parental leave simultaneously or sequentially within 18 months after the child's birth, each parent's parental leave pay for the first 6 months will be increased from 80% to 100% of the ordinary wage. The cap will also be raised from 2 to 3 million KRW per month to 2 to 4.5 million KRW per month. Although the cap is 2 million KRW in the first month, it will increase to 4.5 million KRW by the sixth month.

The requirements for early reemployment allowance payment for job seekers aged 65 and over will be relaxed. Currently, if a job seeker receiving unemployment benefits is reemployed before half of the prescribed benefit days have passed and maintains employment for 'more than 12 months,' 50% of the remaining unemployment benefits are paid as an early reemployment allowance. In the future, for job seekers aged 65 and over, the early reemployment allowance will be paid if they are reemployed in a job with confirmed continuous employment for 'more than 6 months.'

The timing of applying the employment insurance premium rate for employment stabilization and vocational competency development projects will also be improved. Currently, the employment insurance premium rate for these projects is applied in four stages (0.25% to 0.85%) depending on the number of regular workers. Going forward, if a small or medium-sized enterprise is subject to a higher rate due to business expansion (increase in employment), the existing rate will be applied for three years from the year following the occurrence of the reason.

Lee Jeong-han, Director of Employment Policy at the Ministry of Employment and Labor, said, "Through this amendment, we will be able to provide essential support to dual-income couples raising infants, job seekers aged 65 and over receiving unemployment benefits, and small and medium-sized enterprises creating jobs." He added, "We will continue to improve the employment insurance system to prevent and overcome multi-layered risks in the labor market."

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