Establishment of Objection Procedure for Disability Employment Levy

Resolution of Related Amendment Bill at the State Council Meeting

An objection procedure will be established regarding the employment levy imposed on workplaces that fail to meet the mandatory employment rate for persons with disabilities.

[Photo by Ministry of Employment and Labor]

On the 23rd, the government deliberated and approved a partial amendment to the "Act on the Promotion of Employment and Vocational Rehabilitation of Disabled Persons," under the jurisdiction of the Ministry of Employment and Labor, at the Cabinet meeting.

This amendment aims to establish an objection procedure related to the imposition and collection of the employment levy (a levy paid by workplaces that do not comply with the mandatory employment rate for persons with disabilities). It also includes revisions to impose late fees based on the number of days overdue in case of levy arrears, as well as adjustments to legal terminology.

The Ministry of Employment and Labor explained, "This is to ensure systematic consistency and uniformity among laws and to protect the rights and interests of the public by reflecting the amendments to the 'Basic Act on Levy Management' implemented in June 2022."

The levy is imposed on employers who employ 100 or more regular workers in national, local governments, public institutions, and private companies but employ persons with disabilities at a rate lower than the mandatory employment rate (3.8% for public sector, 3.1% for private sector). If the number of persons with disabilities employed by the employer falls short of the mandatory employment number, the levy is calculated by multiplying the shortfall by the basic levy amount and summing it annually.

Previously, there was no separate objection procedure after the levy was imposed, but the amendment includes a provision allowing employers to file an objection with the Minister of Employment and Labor within 30 days from the date of receiving the levy notification. The Minister must review the objection within 30 days of receipt and notify the employer in writing. While late fees were previously charged on a monthly basis, the amendment also includes a plan to calculate and impose late fees on a daily basis going forward.