Parental Leave Pay Set at 2.5 Million Won... Colleagues Sharing Work Receive 200,000 Won [2025 Budget Plan]

Ministry of Economy and Finance Announces Next Year's Budget Proposal
1.7 Trillion KRW Increase for Work-Family Balance Budget
Spousal Maternity Leave Extended from 5 to 20 Days

The government will expand the low birthrate budget starting next year, including support for work-family balance, caregiving, and housing. The childcare leave allowance will be increased to a maximum of 2.5 million KRW per month, and a new monthly support fund of 200,000 KRW will be established for workers who share childcare leave duties.

The Ministry of Economy and Finance announced the '2025 Budget Plan' with these details on the 27th.

Childcare Leave Allowance Increased by 1 Million KRW

As the government faced a worsening low birthrate problem, with last year's total fertility rate (the expected number of children a woman of childbearing age will have in her lifetime) recording an all-time low of 0.72, the budget for work-family balance next year was increased by 1.7 trillion KRW compared to this year. Among this, the budget increase for raising the childcare leave allowance ceiling accounted for the majority at 1.4 trillion KRW.

This year, the childcare leave allowance was capped at 1.5 million KRW, which was about 80% of the ordinary wage. Next year, it will be increased to a maximum of 2.5 million KRW, equivalent to 100% of the ordinary wage. The allowance will be 2.5 million KRW for months 1 to 3 of childcare leave, 2 million KRW for months 4 to 6, and 1.6 million KRW from the 7th month onward.

An official from the Ministry of Employment and Labor said, "If both parents take childcare leave for more than three months, we are pushing for a legal amendment to extend the period up to one and a half years." He added, "With the revision, it will be possible to receive 1.6 million KRW for up to 18 months instead of 12 months." He further explained, "If the legal amendment is made quickly, it could be applied starting this year."

Employers who provide incentives such as allowances to workers who share the workload of colleagues on childcare leave will receive support of up to 200,000 KRW per person. The government has newly allocated a budget of 25.2 billion KRW for this. Support is limited to workers employed at small and medium-sized enterprises, and considering the scale of childcare leave, the total number of beneficiaries is set at 19,000.

The paternity leave allowance for co-parenting spouses will increase fourfold from 5 days to 20 days. The related budget is set at 24.2 billion KRW, an increase of 15.8 billion KRW compared to this year. Additionally, the substitute workforce support fund, which has traditionally been paid to employers, will increase from 800,000 KRW to 1.2 million KRW per month.

An official from the Ministry of Economy and Finance stated, "Including the major projects and tasks announced by the Low Birthrate and Aging Society Committee in June, the low birthrate-related budget will increase by 3.6 trillion KRW next year," adding, "The total low birthrate budget will rise from 161 trillion KRW this year to 197 trillion KRW next year."

Childcare Services Also for Households Below 200% of Median Income

To reduce the childcare burden on parents, the government will expand the eligibility criteria and support rate for government-subsidized childcare services. Previously, support was limited to households below 150% of the median income, but starting next year, the target will be expanded to households below 200%. This will allow an additional 10,000 households to receive support. The resulting budget increase is 45.6 billion KRW.

For housing support for newlyweds and childbirth families, the income eligibility for the newborn special loan will be relaxed from 130 million KRW to 250 million KRW or less. To this end, the related budget for next year will be increased by 658.5 billion KRW compared to this year. Additionally, 862.7 billion KRW will be newly invested next year to supply 30,000 non-apartment rental homes at prices below market value.

Meanwhile, the government has set next year’s budget at 677.4 trillion KRW, a 3.2% increase from this year. Among this, the budget for health, welfare, and employment, including responses to the low birthrate, will increase by 4.8% to 249 trillion KRW. This is the second-largest increase after research and development (R&D; 29.7 trillion KRW, an 11.8% increase).