Starting next year, the cap on the reference amount used to calculate the reduced working hours benefit for child care will be raised. As a result, benefits paid to workers who shorten their working hours to care for children up to sixth grade in elementary school are expected to increase.
The Ministry of Employment and Labor (MOEL) said on the 16th that a partial amendment to the enforcement decrees of the Employment Insurance Act and the Act on the Collection of Insurance Premiums for Employment Insurance and Industrial Accident Compensation Insurance, which contains these measures, was approved at a Cabinet meeting.
The reduced working hours benefit for child care is calculated by multiplying the monthly ordinary wage by the ratio of reduced hours to prescribed weekly working hours before the reduction. For example, if a person who worked 40 hours a week leaves work two hours early each day and reduces weekly hours by 10, the government pays 25% of the monthly ordinary wage.
In this case, for up to 10 reduced hours per week, 100% of the ordinary wage is covered, and the cap on that ordinary wage will increase from 2.2 million won to 2.5 million won per month. For reduced hours exceeding 10 per week, 80% of the ordinary wage is covered, and that cap will also increase from 1.5 million won to 1.6 million won per month.
The payment period for subsidies for replacement workers for employees on parental leave will also be extended by up to one month. This program provides up to 1.2 million won per person per month to employers who hire replacement workers for employees on parental leave. Previously, subsidies were paid for the two months before parental leave and during the leave period. Going forward, one additional month will be provided after the employee returns. In addition, the subsidy will be paid in full for the period the replacement worker is employed.
In addition, next year's cap on job-seeking benefits will be raised to 68,100 won for the first time in six years. This is intended to address the issue of the floor on job-seeking benefits, which is linked to the minimum wage, exceeding the existing cap as next year's minimum wage rises to 10,320 won per hour.