Posted August. 02, 2017 07:33,
Updated August. 02, 2017 08:11
Childcare leave allowance paid to civil servants will double for the first three months of leave starting from next month. The Personnel Management Administration announced Tuesday that the monthly allowance paid to parents in childcare leave by employers will be raised from the current 40 percent of their basic wage to 80 percent during the first three months of leave.
The upper ceiling will also be raised from the current 1 million won (891 U.S. dollars) to 1.5 million won(1,336 dollars), and the lowest limit will also be raised from 500,000 won (445 dollars) to 700,000 won (623 dollars). From the fourth month on, 40 percent of basic wage will be paid for nine months.
The childcare leave allowance for civil servants was introduced in 2001 when 200,000 won (178 dollars) was paid which was raised to 500,000 won (445 dollars) in 2007. The allowance was raised to 40 percent of basic wage starting in 2011. However, the income substitution ratio of childcare leave allowance remains at just 29 percent, placing Korea at 19th among 23 OECD member countries.