The government will gradually raise the mandatory employment rate for persons with disabilities at private companies from the current 3.1% to 3.3% in 2027 and 3.5% in 2029.
The government announced that on the 10th it deliberated and approved at a Cabinet meeting a partial amendment to the Enforcement Decree of the Act on Employment Promotion and Vocational Rehabilitation for the Disabled that includes these measures.
This amendment reflects the reality that the employment level of persons with disabilities is low compared with the total population. Based on those aged 15 and over, the employment rate is 63.8% for the total population, whereas it is only 34.0% for persons with disabilities.
The mandatory employment rate in the public sector has steadily risen from 3.4% in 2019 to 3.6% in 2022 and 3.8% in 2024. However, in the private sector it has remained at 3.1% since 2019. The government explained that, in light of this gap, it decided to adjust the mandatory employment rate for the private sector.
The Ministry of Employment and Labor pursued the amendment to the Enforcement Decree based on a resolution by the Expert Committee on Employment Promotion for the Disabled in December 2024, and this matter is also included in the government’s state affairs agenda. Previously, in 2019, the Expert Committee decided to raise the rates from 2024 to 3.5% for the private sector and 3.8% for the public sector, but the increase for the private sector was put on hold in consideration of the COVID-19 situation and other factors.
The government will also implement support measures to reduce the burden on companies resulting from the higher mandatory employment rates. It will ease the burden on employers by changing the method of imposing arrears from a monthly basis to a daily basis, and it has relaxed regulations limiting investments by holding companies, thereby rationalizing the requirements for establishing subsidiary-type standard workplaces.
In addition, it has newly introduced incentives to improve employment for persons with disabilities, which will be provided to companies with 50 to 99 employees when they reach the mandatory employment rate. The government also stated that it will review ways to diversify the means of implementing mandatory employment, thereby pursuing both higher mandatory employment rates and support for companies.
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