Firms to get subsidies for staff covering paternity leave

Workers at small and medium-sized businesses who take on the duties of colleagues on spousal childbirth leave will be eligible for government subsidies from July 1, under revisions announced by the Labor Ministry.

The Ministry of Employment and Labor said it would provide a 41-day advance notice of proposed revisions to enforcement decrees and rules under the Employment Insurance Act and the Employment and Industrial Accident Compensation Insurance Premium Collection Act.

Currently, the workload-sharing subsidy applies only when employees cover for colleagues on parental leave or reduced working hours for child care. Under the revisions, workers who cover for colleagues taking 20 days of spousal childbirth leave will also be eligible.

Under the subsidy program, the government reimburses employers at eligible businesses for allowances paid to workers filling in for colleagues on leave.

Currently, the subsidy is capped at 600,000 won ($400) per month for workers covering parental leave and 200,000 won per month for those covering reduced working hours for child care.

For spousal childbirth leave, however, the amount has not yet been set, as the relevant notice has yet to be revised. The ministry said it will determine the level of support after further review.

Separately, the ministry reduced the reporting deadline for the start of operations under the regional employment promotion subsidy to six months from 18 months, aiming to accelerate job creation.

The subsidy supports employers that relocate, establish or expand operations in employment crisis zones and hire local job seekers for at least six months.

Meanwhile, the application period for the employment promotion incentive has been extended to 18 months from 12 months after hiring to ease the application process for employers.

“This revision is intended to provide practical support for men’s participation in child care and improve the employment insurance support system so that it can be more helpful in people’s work and daily lives,” Labor Minister Kim Young-hoon said.