Change in Childcare Leave Benefit

l Change in Childcare Leave Benefit

Under the Equal Employment Opportunity and Work-Family Balance Assistance Act of Korea, employee who has a child of 8 years or under or attending the second grade or lower of an elementary school is entitled to take a maximum of one year of childcare leave to be able to take care of his/her child. The employee can split childcare leave into two, but the period of the childcare leave should not exceed one year in total. The employer may disallow childcare leave if the service period with the company is less than 6 months prior to taking the childcare leave.

The employee may receive childcare leave pay from the government agency under the Employment Insurance Act for 80% of his/her ordinary wage up to KRW 1.5 million per month for three months from the first day of a childcare leave. From the fourth month until the last day of a childcare leave, the childcare leave pay will be reduced to 50% of his/her ordinary wage up to KRW 1.2 million per month. The government agency holds 25% out of the childcare leave pay during the leave period and will pay this withheld amount to the employee at the time when 6 months elapse from the date the employee returns to his/her work.

During the childcare leave period, the employer does not have legal obligation to pay salaries. However, upon the employee's resignation at a future date, the child care leave period shall also be included in the service period for severance pay calculation.

The employer shall cooperate with the employee in receiving the childcare leave pay from the government agency by providing the supporting documents. The employee concerned should submit the requisite documents when applying for the childcare leave benefit to the government agency either in person or by post.

Effective from February 28, 2020, both parents may apply for childcare leave at the same time. In which case, however, childcare leave pay will be provided only to one parent.