Up to 60 Million KRW Support for SMEs Reducing Working Hours... "Individual Notifications for July Selections"

[Asia Economy Reporter Moon Chaeseok] The government has decided to provide support funds of up to 60 million KRW per company to reduce working hours as the 52-hour workweek system will be implemented for companies with 5 to 49 employees starting this July.

The Ministry of Employment and Labor announced the 'Working Hours Reduction Settlement Support Fund' project on the 25th. This project was launched in response to the implementation of the 52-hour workweek system for workplaces with 5 to 49 employees starting July 1.

Companies that implement working hours reduction measures after this date are classified as 'Type 1,' while companies that have already reduced working hours are classified as 'Type 2,' with support provided accordingly.

Type 1 companies must submit a reduction plan (application) within one month from next month, implement the actual reduction measures by the end of April, and then apply for the support fund between June 1 and 30. Type 2 companies can apply directly in June.

The Ministry of Employment and Labor will hold a review committee considering the period of working hours reduction and the appropriateness of the reduction measures to select support recipients. Up to 60 million KRW per workplace and 1.2 million KRW per employee will be provided.

Support companies will be selected and individually notified in July.

'Support Fund for Establishing Reduced Working Hours' 2021 Project Overview. (Data from Ministry of Employment and Labor)

The Ministry explained that the reason for establishing Type 1 is to "promote early working hours reduction among companies with 5 to 49 employees."

Type 2 is implemented to give another chance to companies with 5 to 49 employees as well as those with 50 to 299 employees that did not receive support funds last year. However, companies that received support last year cannot receive duplicate funds.

However, support funds will be provided only for the number of employees whose working hours actually decreased after the law was enforced, not for the total number of employees at the workplace.

For example, if a workplace has 49 employees but only 10 employees actually reduced their working hours after the 52-hour workweek implementation, only 12 million KRW (for 10 employees) will be paid.

Companies participating in the 'Working Hours Reduction Field Support Group,' 'Workplace Innovation Support,' or those issued a 'Public Office Holiday Paid Leave Conversion Certificate' will be given preferential treatment when selecting support recipients.

Companies wishing to receive support funds should prepare documents according to the application form attached on the Ministry of Employment and Labor’s working hours reduction website and submit them by visiting the local employment and labor office in charge or via mail, fax, or email.