The South Korean National Assembly passed amendments aiming to reverse the trend of low birth rates by increasing paternity leave and maternity leave for premature births, among other changes.
The new amendments to the Gender Equal Employment and Work-Family Balance Act and the Labor Standards Act, which passed on 26 September 2024, are expected to take effect on 23 February 2025.
Other changes have also been announced in the government’s budget for 2025 (“Budget 2025”) and by the Ministry of Employment and Labor (“MOEL”), including increases in childcare leave benefits, changes in childcare leave application processes, and subsidies for substitute manpower and work sharing for childcare leave. MOEL is revising subsidiary legislation to implement the changes, expected for release by 19 November 2024 and to take effect from 1 January 2025.
Key details
Increase in paternity leave
From 23 February 2025, employer-paid paternity leave will increase from 10 to 20 days, to be taken within 120 days after a child’s birth (previously 90 days), with a new option to use the paternity leave in up to three installments (previously one installment).
Previously, employers eligible for priority support were only able to claim wage subsidies from the government for five out of the 10 days of employer-paid paternity leave (up to approximately KRW 400,000). From 23 February 2025, these employers will be able to claim wage subsidies for the full 20 days of employer-paid paternity leave (up to approximately KRW 1.6 million).
Employers eligible for priority support are small and medium enterprises that do not exceed industry-specific employee count and revenue thresholds, set out in Schedule 1 of the Enforcement Decree of the Employment Insurance Act (opens a new window).
Increase in maternity leave for premature births
Pregnant employees are currently entitled to 90 days of maternity leave (120 days if pregnant with multiple children), regardless of whether the birth is premature or not. The first 60 days (75 days if the employee is pregnant with multiple children) is fully paid by the employer, and the remaining 30 days (45 days if the employee is pregnant with multiple children) is paid by the government up to KRW 2.1 million for every 30 days.
If the employer is eligible for priority support, the government pays for the entire maternity leave period, up to KRW 2.1 million for every 30 days. If an employee’s regular wages exceed the cap, the employer is required to pay the difference between the cap and the employee’s regular wages for the first 60 days. Beyond the first 60 days, employers are not required to pay employees above the government-paid amount, though they may do so voluntarily.
From 23 February 2025, maternity leave for premature births will increase from 90 days to 100 days. The additional 10 days will be paid by the government up to the same cap of KRW 2.1 million for every 30 days (effectively, KRW 700,000 for 10 days).
Extended period for use of reduced working hours during pregnancy
Currently, pregnant employees who work more than eight hours per day are entitled to apply for reduced working hours during pregnancy by two hours a day, and pregnant employees who work less than eight hours per day are entitled to apply for reduced working hours during pregnancy to six hours a day. These reduced working hours during pregnancy can be used only within the first 12 weeks of pregnancy or after 36 weeks of pregnancy.
From 23 February 2025, these can be used within the first 12 weeks of pregnancy and have been expanded to be used after 32 weeks of pregnancy.
Increase in infertility treatment leave
Employees may currently request up to three days of infertility treatment leave per year, with only the first day being fully paid by the employer.
From 23 February 2025, infertility treatment leave will increase to six days per year, with the first two days being fully paid by the employer. From 23 February 2025, employers eligible for priority support may also claim government wage subsidies for the first two days of infertility treatment leave. Previously, no subsidies were provided. Details on any maximum amount to be claimed and implementing legislation for the new government wage subsidies have yet to be released.
Changes in childcare leave benefits
Working parents with a child under age eight or in the second grade of elementary school or below are currently entitled to take up to one year of partially government-funded childcare leave, paid from the employment insurance fund.
Increase in maximum payment amounts: From 1 January 2025, the maximum payment amounts for childcare leave benefits will increase from KRW 1.5 million per month to KRW 2.5 million for months one to three, KRW 2.0 million for months four to six, and KRW 1.6 million for months seven and above.
Increase in maximum payment amounts for single-parent employees: For single-parent employees, the maximum payment amounts for childcare leave benefits is currently KRW 2.5 million per month for months one to three, and KRW 1.5 million per month thereafter. These will be raised to KRW 3 million per month for months one to three, KRW 2.0 million for months four to six, and KRW 1.6 million for months seven and above.
For employees who started childcare leave before 1 January 2025, the increased amounts will apply to the period of childcare leave used from 1 January 2025.
Abolishment of post-payment of 25% of childcare leave: Currently, 25% of childcare leave is paid only six months after returning to work. From 1 January 2025, post-payment will be abolished, and full payment will be made during the period of childcare leave.
Increase in childcare leave for specific categories of parents: From 23 February 2025, childcare leave is increased from one year to one and a half years for single parents, parents of a child with a severe disability, or where both parents each take more than three months of childcare leave. This change means that if a parent (who is not a single parent or a parent of a child with a severe disability) takes only three months or less of childcare leave, both parents will not be eligible for the extended one and half years of childcare leave and will only be eligible for one year of childcare leave.
Increase in number of periods for which childcare leave may be taken: From 23 February 2025, childcare leave may also be taken in three separate periods (previously, two), excluding the number of times a pregnant female employee takes leave for maternity protection.
Changes in childcare leave application processes
Previously, employees had to apply for maternity leave and childcare leave separately. From 1 January 2025, employees can apply for both in one integrated application.
There will be a new requirement for employers to give written approval within 14 days of employees’ applications. If the employer does not respond within the 14 days, the employee can use the childcare leave as requested. Previously, employers only had a duty to permit the taking of leave and did not have an obligation to respond to applications.
Changes in reduced working hours for childcare
In addition to childcare leave, working parents are also currently entitled to an additional year of partially government-funded reduced working hours for childcare.
Expanded eligibility: Currently, reduced working hours for childcare can be used for children under age eight or in the second grade of elementary school or below. From 23 February 2025, this has been expanded to children under age 12 or in the sixth grade of elementary school or below.
Doubling of unused childcare leave period when used as reduced hours for childcare period: An employee currently has the option to use their childcare leave period all at once, or to use it entirely or partially as an equivalent period of reduced hours for childcare, which means that an employee may choose to use reduced working hours for childcare for up to two years. From 23 February 2025, if there is an unused period during the childcare leave period, double that unused period will be added to the reduced working hours for childcare, meaning that an employee may choose to use reduced working hours for childcare for up to three years.
Decrease in minimum period for reduced working hours for childcare: Employees may divide the use of their entitlement to reduced working hours for childcare. From 23 February 2025, the minimum length of each period of divided use will be one month (previously three months).
Increase in maximum payment amount: Based on Budget 2025, the maximum payment amounts for employees on reduced working hours for childcare is expected to be raised from KRW 2 million to KRW 2.2 million. Implementing legislation for this new entitlement has yet to be released.
Subsidies for substitute manpower and work sharing for childcare leave
From 1 January 2025, the government wage subsidy for substitute workers for maternity leave and reduced working hours for childcare will be extended to include substitute workers for childcare leave. The maximum amount of the subsidy will also increase from KRW 800,000 to KRW 1.2 million per month.
From 1 January 2025, the government wage subsidy of up to KRW 200,000 per month for workers who take on additional work while a coworker is using reduced working hours for childcare will also be extended to include workers who take on additional work while a coworker is on childcare leave.
Introduction of short-term childcare leave
Budget 2025 introduces the establishment of a new short-term childcare leave entitlement to be taken once a year for two weeks. Implementing legislation for this new entitlement has yet to be released.
Lockton comments
Employers should review and start preparing updates to their family leave policies and procedures, in anticipation of the extensive upcoming changes. In addition, employers may wish to monitor the release of any subsidiary legislation (enforcement decrees and regulations) as these will provide more clarity and guidance on the changes.
TO INCLUDE
Ministry of Economy and Finance - Budget 2025 (opens a new window)
Ministry of Employment and Labor - Press Release on Family Leave (opens a new window)