Labors are demonstrating by demanding ‘4.5-day workweek.’
The government will begin implementing a ‘4.5-day workweek’ starting the new year. Companies that reduce working hours through labor-management agreements will receive up to 800,000 won (approximately $555) per worker. Infrastructure construction costs will also be supported up to 80%. The plan is to gradually expand the scope after conducting pilot projects this year.
According to the government on January 5, the Ministry of Employment and Labor completed revisions to the ‘Regulations on Application and Payment of Employment Creation Subsidies and Employment Stability Subsidies’ at the end of last year and began implementation from Jan. 1 this year. The content expands and newly establishes work-life balance job subsidies under employment stability subsidies.
Among work-life balance job subsidies, the ‘Work-Life Balance+4.5 Project’ is being newly promoted. Companies that reduce actual working hours without wage cuts through labor-management agreements are eligible. The introduction of a 4.5-day workweek is a representative example.
Support ranges from 200,000 to 600,000 won per worker monthly for six months, varying by company size and type. Smaller companies and those in life and safety-related industries receive higher support amounts.
Eligible companies include priority support companies with 50 or more employees and companies with 20 to 49 employees. Types are divided into partial introduction (reduction of less than 2 hours per week) and full introduction (reduction of 2 hours or more).
Priority support companies with 50 or more employees receive 200,000 won per worker monthly for partial introduction. Full introduction provides 400,000 won monthly. Companies with 20 to 49 employees receive 300,000 won monthly for partial introduction and 500,000 won for full introduction. Life and safety-related industries receive an additional 100,000 won for each type.
The support limit is 100 people for companies with 50 to 300 workers. Companies with fewer than 50 employees have no limit.
Support increases significantly when companies hire new personnel to reduce working hours. Companies with 50 or more employees receive up to 600,000 won monthly, while those with 20 to 50 employees receive up to 800,000 won monthly. This aims to achieve the ‘two goals’ of reducing working hours and creating new employment.
Flexible work subsidy requirements and rates have been simplified. Eligible recipients are small and medium-sized enterprise owners who introduce telecommuting, remote work, or flexible scheduling. Previously, differential payments of 150,000 to 400,000 won were made based on usage frequency, but starting this year, a unified payment of 200,000 won is provided for usage four or more times monthly.
System construction costs for flexible work have been unified from 50-80% support by type to 80% support (up to 10 million won limit). Workplaces with fewer than 30 employees receive up to 100% support (up to 1.8 million won annually). Support targets now include hourly annual leave and maternal protection and work-family balance in addition to existing flexible work forms.
Meanwhile, the Ministry of Employment and Labor is accepting applications from companies through the Korea Labor Foundation. This year’s budget is 27.6 billion won.
