Multiple Employment Incentives Allowed for Workplaces with Many Disabled Employees: Overlapping Employment Promotion and Retention Subsidies Permitted

[Asia Economy Reporter Kwangho Lee] From June this year, the government will relax payment restrictions to allow employers who hire a majority of persons with disabilities and receive employment retention subsidies under the Employment Insurance Act to also receive disability employment incentives simultaneously.

On the 26th, the government reviewed and approved the 'Enforcement Decree of the Act on Promotion of Employment and Vocational Rehabilitation of Persons with Disabilities' containing this content at the Cabinet meeting.

The disability employment incentive is a system that compensates employers who hire workers with disabilities exceeding the mandatory employment rate for special costs such as installing facilities for persons with disabilities. It has been in operation since 1991.

For each person with a disability hired exceeding the mandatory employment rate of 3.1%, support ranging from 300,000 to 800,000 KRW per month is provided depending on the degree of disability and gender. For example, 300,000 KRW for mild male, 450,000 KRW for mild female, 600,000 KRW for severe male, and 800,000 KRW for severe female.

The employment retention subsidy is a system where the government supports part of the leave or suspension allowance when companies facing management difficulties maintain employment through measures such as leave or suspension instead of employment adjustment.

This amendment to the Enforcement Decree of the Disability Employment Act is a measure taken amid concerns about the decrease in employment of persons with disabilities, a vulnerable employment group, due to the recent employment crisis caused by the novel coronavirus infection (COVID-19).

If an employer who hires a majority of persons with disabilities has taken employment retention measures such as leave and received employment retention subsidies, they will be able to additionally receive disability employment incentives to alleviate the employer's management difficulties and maintain employment of persons with disabilities.

The government plans to allow overlapping payments with employment retention subsidies starting from the June payment of disability employment incentives after the amendment to the Enforcement Decree of the Disability Employment Act.

If employers meet the requirements for receiving disability employment incentives, they can apply for and receive the disability employment incentives from June even if they have received employment retention subsidies.

Disability employment incentives can be applied for through the Korea Employment Agency for Persons with Disabilities e-Reporting Service or at the branch office of the Korea Employment Agency for Persons with Disabilities that has jurisdiction over the workplace location.