The monthly cap on maternity leave benefits paid to female office workers who take leave before and after childbirth will rise to 2.2 million won. Maternity leave is a system that allows workers enrolled in employment insurance to receive pay and take a total of 90 days off before and after childbirth. In cases of premature infants and twin births, workers can take 100 days and 120 days off, respectively.
The Ministry of Employment and Labor (MOEL) on the 10th gave advance notice of an administrative rule to revise the "notice on caps for maternity leave benefits."
Of the 90 days of maternity leave, 60 days are paid at 100% of ordinary wages. For large companies, the company pays directly, while for small and medium-sized companies the government currently provides up to 2.1 million won per month and the company pays the difference to ordinary wages. For the remaining 30 days, regardless of company size, the government covers ordinary wages, and the cap on support during this period is also up to 2.1 million won per month.
The problem is that with next year's minimum wage rising to 10,320 won, even those who earn the least will receive 2,156,880 won per month when considering the prescribed working hours (209 hours per month). This would flip the existing cap.
To address this issue, the labor ministry raised the monthly cap on maternity leave benefits for next year by 100,000 won to 2.2 million won. This is the first increase in the cap on maternity leave benefits in three years.
However, although the government raised the cap this time, some note that an overhaul of the system is needed because it is not a fundamental solution. Since the minimum wage increases every year, the inversion with the cap could recur within one to two years.