Starting in January 2024, when both parents take childcare leave, they will collectively be able to receive up to ₩9 million in monthly benefits. This was made possible by the 6+6 Childcare Leave Policy that was put forward by the Ministry of Employment and Labor (MOEL) last October 6th. While this policy will increase the benefit amount and eligibility period, its practicality remains questioned. With this, the Sungkyun Times (SKT) aims to examine the constraints of Korea’s childcare leave system and explore opportunities for improvement.
Childcare Leave over the Years
- 3+3 = ?
In Korea, eligible employees are allowed to take childcare leave for a maximum of a year before their child reaches eight years old. This concept was first introduced through the Equal Employment Opportunity Act in 1987, with the goal of promoting work-family life balance. Although this act did not provide any monetary benefits, legal amendments in 2001 enabled parents to take paid leave through their employment insurance. Currently, insured workers could receive up to 80% of their wage for the first 3 months of their leave. In 2022, the government introduced the 3+3 Childcare Leave Policy to foster a culture of shared parenting. This type of leave is specifically applicable to parents with children under 12 months old, with the caveat that they both take their leave simultaneously or sequentially. This policy provides benefits amounting to 100% of the parent’s wages, with a ceiling of ₩2 million for the first month and an additional increase of ₩500,000 each month, for a total of three months. Despite this, the 3+3 policy has shown limited progress. Data released by the MOEL revealed that although the percentage of male leave-takers increased from 21.9% in 2019 to 28.9% in 2022, their utilization rate is nowhere near that of women.
- The 6+6 Childcare Leave Policy
To address the limitations of the 3+3 Childcare Leave Policy, the government looked towards a solution that could further encourage shared parenting and alleviate parents’ economic burden. In line with this, the MOEL revised the current 3+3 to the 6+6 Childcare Leave Policy as part of a legislative notice containing amendments to the Employment Insurance Act and the Insurance Premium Collection Act. The new policy expanded the child age limit from 12 to 18 months and increased the benefit period from 3 to 6 months, resulting in a maximum receivable benefit amount of ₩39 million. The provisions under the 6+6 Policy will further aid the rising trend of men taking childcare leave and help parents shoulder the financial costs associated with it.
Childcare Leave, Is It a Pie in the Sky?
- Perfect on Paper, Inapplicable in Practice
While the 6+6 Childcare Leave Policy has expanded childcare leave benefits, it has not widened the eligibility criteria or addressed the practical barriers. First, individuals who are not covered by employment insurance, such as self-employed persons, contract laborers, and freelancers, are excluded from monetary benefits. Under this system, female workers in this category can receive a monthly maternity allowance of only ₩500,000 for three months. However, this amount is insufficient, especially when considering that the average monthly living expense of a single-person household is ₩1.61 million, as published by the National Statistical Office last year. Moreover, societal perceptions add another layer of difficulty to requesting childcare leave. According to Gabjil119, a civic organization for workplace harassment, 45.2% of employees reported that they are unable to freely use childcare leave. There also exists the potential of experiencing disadvantages due to career interruptions. Kim Seo-ryong, a Certified Public Labor Attorney and Gabjil119 staff member, told the SKT, “Many parents hold concerns about the possibility of being harassed, being excluded from promotions, and being unfairly reassigned or dismissed after returning to work.”
- Business Not as Usual
Childcare leave places a burden on employers, especially those of small and medium-sized enterprises (SMEs) that struggle with the financial strain caused by vacancies in the workplace. Currently, the MOEL provides an ₩800,000 subsidy to employers who hire temporary workers to fill positions during childcare leave. However, according to a debate hosted by the Gyeonggi-do Women’s Association United, employers often cannot receive this subsidy because they have difficulty finding a suitable replacement. Furthermore, some employers exploit the vague labor laws to opt out of due processes. Attorney Kim explained, “Many SMEs do not adhere to the law either because they do not hold much understanding about it or due to their business circumstances.” While the Equal Employment Opportunity and Work-Family Balance Act prohibits companies from providing “unfair treatment” to leave-takers, many companies choose to ignore it since its criteria are not concretely defined. Lee Seon-young, who recently returned from childcare leave to her job at a university health center, expected to face fewer challenges, considering her eight years of experience at the workplace. However, she instead faced with a strong suggestion to switch departments. In an interview with the SKT, Lee explained, “The law may protect you, but if the company culture remains unchanging, you naturally think that you have to follow your superiors and HR managers.” As the number of childcare leave users increases, the burden on employers is expected to rise alongside the risk of legal exploitation.
Sharing the Pie of Childcare Leave
- Prioritizing Accessibility before Improvements
To ensure the effectiveness of the 6+6 Childcare Leave Policy, it is essential to broaden the eligibility criteria and establish childcare leave as a guaranteed right. First, enabling more people to receive the policy’s benefits will help shoulder their economic burden. In countries such as Sweden, self-employed persons contribute to the social security system, as opposed to employment insurance, which gives them the opportunity to pay their dues and receive the same benefits under the childcare leave system. Korea can also adopt a similar approach and create a separate insurance policy for them. On top of this, the Automatic Childcare Leave Policy being promoted by the Presidential Committee on Ageing Society and Population Policy can help create a childcare-positive workplace. The Lotte Corporation, which served as the model for this system, allowed parent employees to take childcare leave without having to apply and receive approval. Since its introduction in 2012, its usage rate has increased from 60% to 90%. Hence, accessible and guaranteed childcare leave will surely help foster a healthier societal outlook toward it.
- Ensuring Business as Usual
Workforce support and legal reforms are necessary to lighten the burden on employers caused by childcare leave. To minimize the gap in the workplace, it is important to expand temporary workforce services and connect appropriate people to fill up positions. Starting next year, the MOEL plans to expand the replacement workforce bank by providing tailored resumes to companies and opportunities to job seekers. Increasing the availability of qualified replacement workers will help minimize the strain on many businesses. Additionally, legal definitions that reflect the issues faced by leave-takers must be established. To enhance the working conditions of leave-takers, the government should consider collaborating with organizations that actively address issues surrounding childcare leave. Attorney Kim emphasized, “It is necessary to pay attention to the cases uploaded on platforms like Gabjil119 to suggest appropriate solutions and provide institutional and material support.” Likewise, adequate workforce support and reality-based, concrete legal definitions are essential to creating a childcare leave-friendly workplace.
For childcare leave to truly be effective, the right to use it must first be guaranteed. Rather than simply expanding leave benefits without much consideration, listening to the parents’ perspectives and reflecting them in the legal framework is essential. The SKT hopes that Kingos actively engage in discussions to ensure a positive childcare leave culture, a key to shaping South Korea’s future.