Supplementary Budget Increases Employment Retention Subsidy by 11.1 Billion Won, Totaling 81.4 Billion Won
On the 21st, the Ministry of Employment and Labor announced that it allocated an additional 11.1 billion won to the Employment Retention Subsidy, securing a total budget of 81.4 billion won. This move is aimed at preparing for future uncertainties due to tariff increases and supporting companies affected by large-scale wildfires.
The Employment Retention Subsidy is a system that aids business owners experiencing management difficulties in maintaining employment by offering partial support for leave or layoff allowances if they retain employees through temporary shutdowns or leaves instead of employment adjustments like layoffs. Employers can receive support for 50% to 66.7% of the leave or layoff allowances paid to employees, up to 66,000 won per day per employee, for up to 180 days a year.
Eligible employees are those who have been on employment insurance for over 90 days, and businesses that have seen a 15% (30% for unpaid leave) or greater decrease in revenue compared to the average of the last six months.
Previously, companies located in regions designated as special disaster areas due to large wildfires in North Gyeongsang Province in March had their application requirements relaxed until the end of the year. These companies can apply even if they do not meet the revenue decrease criterion, and the employment insurance requirement for employees does not apply. Additionally, the support level was raised up to a maximum of 90%.
Business owners wishing to receive the Employment Retention Subsidy must prepare an employment retention plan and report it to the local employment and labor center. After implementing the temporary shutdowns or leaves and paying employee allowances, they can apply for the subsidy on a monthly basis.