Statutory Social Insurances and HR Tips

l Increase in maximum contribution ceiling and minimum contribution floor of National Pension, effective from July 1, 2025

Starting from July 1, 2025, the monthly maximum ceiling for the Pension increases from KRW 277,650 to KRW 286,650 for both employers and employees. This change affects only employees whose monthly gross salary exceeds the maximum ceiling of KRW 6,370,000.

The monthly minimum contribution floor for the National Pension has also increased from KRW 17,550 to KRW18,000. This change only affects employees whose monthly gross salary is less than the minimum threshold of KRW400,000.

l Amendments to laws for childcare leave and reduced working hours government subsidies for childcare purposes (Effective from July 1, 2025)

Under Article 23 of the Employment Insurance Act and Article 29-1-2 of its Enforcement Decree, the government has provided subsidies to employers of priority support companies that have granted childcare leave or reduced working hours for childcare purposes for more than 30 days.

Until now, only 50% of the subsidy was paid in a three-month installments during the period of childcare leave or reduced working hours for childcare purposes, and the remaining 50% was paid as a lump-sum by the government to the employer after it was confirmed that the employee had been continuously employed for six months or more following their return to work.

However, under the recent amendment to the Enforcement Decree of the Employment Insurance Act of Korea, even if an employee voluntarily resigns after taking childcare leave or working reduced hours for childcare purposes, the employer can still receive the remaining 50% of the subsidy regardless of whether the employee has been continuously employed for six months or more following the end of the childcare leave or reduced working hours.

Previously, if an employee voluntarily resigned or their employment was terminated due to personal reasons within six months after the end of the childcare leave or reduced working hours for childcare purposes, the employer was not eligible to receive the remaining 50% of the subsidy.

*) Special case: If an employee has a child under 12 months of age, the employer can receive KRW 2 million per month for the first 3 months, and KRW 300,000 per month thereafter.

**) Special case: If an employer in a business that has never previously used reduced working hours for childcare purposes allows it for the first time, an additional KRW 100,000 per month will be paid, up to the third instance of approval.