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Monday, July 27, 2026

South Korea revises Employment Act to bolster paternity leave support and SME hiring - HRM Asia

South Korea will expand subsidies from July 1 to support employees covering colleagues on spousal childbirth leave, easing SME workload pressures.

The South Korean Ministry of Employment and Labour has announced a significant expansion of its workload-sharing subsidy programme to include employees who cover for colleagues on spousal childbirth leave.

Beginning July 1, the government will provide financial support to small and medium-sized businesses to compensate employees who take on extra duties when a teammate takes the 20-day spousal leave period. This policy shift, announced alongside a 41-day public notice of revisions to the Employment Insurance Act, marks a significant effort to encourage men’s participation in childcare while easing the operational burden on smaller organisations.

Under the current system, these subsidiaries are only available to those filling in for colleagues on parental leave or reduced working hours for childcare. While the government currently caps monthly payouts at 60,000 won for parental leave coverage and 200,000 won for reduced hours, the specific subsidy amount for spousal leave coverage has yet to be finalised. Labour Minister Kim Young-hoon noted that the revision is intended to provide practical support for work-life balance and improve the overall effectiveness of the employment insurance system.

READ MORE: Young talent in South Korea accepts lower starting pay as entry-level roles decline

In addition to the leave-related updates,...



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