Expanded tax exemption limit of childcare allowance under the amended tax law (effective January 1, 2026)

The tax exemption limit of childcare allowance for employees having children of six years of age or younger has been expanded from a flat Won 200,000 per month to Won 200,000 per month per child.

Examples of tax exemption limits (for reference):
- 1 child: up to Won 200,000 per month
- 2 children: up to Won 400,000 per month
- 3 children: up to Won 600,000 per month, etc.

To benefit from this non-taxable treatment of childcare allowances of Won 200,000 per month per child, the company contract shall be revised properly to reflect the amount of childcare allowance as a separate pay element.