Paternity leave to double to 20 working days

The government intends to double paternity leave to 20 days, up from the current 10, while also substantially boosting parental leave allowances. It is also restructuring tax support measures, originally designed for women with career interruptions, to include men, and developing tailored employment support programs for young people.

These government initiatives, aimed at enhancing job quality and working conditions, are seen as crucial steps toward improving social mobility in Korea.

“The government’s strategy for enhancing social mobility focuses on three key areas of employment, educational opportunities, and asset formation,” Finance Minister Choi Sang-mok said at an economy-related ministers’ meeting, Wednesday.

These measures were introduced in response to concerns that the upward social mobility ladder has eroded in various sectors, impacting the dynamism of the country’s economy.

First, the government will extend paternity leave from 10 to 20 working days, which is approximately one month after factoring in weekends. This change addresses criticism that the shorter duration hinders fathers from actively participating in child care following birth. Additionally, the allowance during child care leave will gradually rise from the current monthly cap of 1.5 million won ($1,080).

Tax incentives for hiring individuals who have experienced career interruptions due to childbirth or child care will be expanded. Currently, companies can receive a tax deduction for up to three years if they rehire individuals within the same industry. The government intends to remove this industry-specific limitation and extend support to include men who have also experienced career interruptions.

Implementing these measures will necessitate revisions to laws pertaining to gender-equal employment.

To assist young jobseekers and the NEET group (those not in education, employment, or training), the government plans to launch an allcare platform. This platform will integrate data from the education ministry regarding students and data from the labor ministry on job information. The government hopes this comprehensive approach will enable proactive employment services are offered to jobseekers.

As part of its initiative to broaden educational opportunities for low-income groups, the government plans to increase the amount of scholarships.

“College students should not be faced with a dilemma where they must choose between pursuing their studies and earning a livelihood,” Choi said. “The public sector will increase hiring individuals with high school diplomas, and efforts will be made to encourage the private sector to follow suit,” he added.

For those in mandatory military service, the criteria for remote course credits will be expanded to support their continued education. Furthermore, the government plans to increase the monthly contribution to soldiers’ savings from 400,000 won to 500,000 won starting next year.

In order to promote asset accumulation through earned income, the government decided to eliminate the restriction that limits individuals to one Individual Savings Account (ISA) each.

“The government is committed to prioritizing the improvement of social mobility, starting with this year’s budget allocations and tax reforms,” a finance ministry official said. “By developing social mobility statistics based on a sample of over 10 million people, we aim to systematically analyze trends and factors, thereby guiding further measures.”

The second set of support measures related to these initiatives is scheduled to be introduced in the latter half of this year.