South Korea offers up to 1 year of childcare leave per parent, funded through the Employment Insurance (EI) system. The system is designed to support both parents taking leave — with a “dual-career couple premium” that increases the payment rate when both parents are in employment. For employers, the administrative burden centres on processing EI claims and managing the employee’s absence within the framework of the Labour Standards Act.
This guide covers South Korean parental leave in 2026: childcare leave for both parents, the EI payment structure, the dual-career premium, and employer obligations.
Key takeaways
- Both parents are entitled to up to 1 year of childcare leave per child, for children under 1 year old (extendable to under 3 if no childcare place is available).
- The Employment Insurance (EI) pays 80% of average daily wage for the first 90 days, then 50% thereafter (subject to caps).
- A dual-career couple premium adds a 20% top-up (up to the cap) when both parents take childcare leave simultaneously.
- Employers with fewer than 30 employees may receive government subsidies to offset the cost.
- The employee must have 6+ months of continuous service and be enrolled in Employment Insurance to qualify.
How childcare leave works
Childcare leave (yugikyugyeol) is a right under the Labour Standards Act and the Employment Insurance Act. It applies to all employees enrolled in the Employment Insurance system.
| Detail | 2026 |
|---|---|
| Duration | Up to 1 year per parent per child |
| Child age | Under 1 year old (extendable to under 3) |
| Eligibility | 6+ months continuous service, enrolled in EI |
| Pay (first 90 days) | 80% of average daily wage (capped at ₩120,000/day) |
| Pay (day 91 onwards) | 50% of average daily wage (capped at ₩100,000/day) |
| Dual-career premium | +20% top-up (capped at ₩100,000/day) |
| Maximum duration (if no childcare) | Up to 2 years total |
The dual-career premium is a key feature: when both parents take childcare leave at the same time, each receives an additional 20% on top of the base rate, up to the daily cap. This incentive was introduced to encourage both parents — particularly fathers — to take leave.
The EI payment structure
The Employment Insurance system funds parental leave benefits. The employer pays the employee during the leave and claims reimbursement from the EI fund.
| Period | EI payment rate | Daily cap |
|---|---|---|
| First 90 days | 80% of average daily wage | ₩120,000 |
| Day 91 onwards | 50% of average daily wage | ₩100,000 |
| Dual-career top-up | +20% of average daily wage | ₩100,000 |
The average daily wage is calculated based on the employee’s earnings in the 3 months before the leave begins. The daily caps are set by the Ministry of Employment and Labour and updated annually.
Example: An employee earning ₩3,000,000/month (₩100,000/day average):
- First 90 days: ₩100,000 × 80% = ₩80,000/day (below cap)
- Day 91 onwards: ₩100,000 × 50% = ₩50,000/day (below cap)
- If both parents take leave simultaneously: Day 91 onwards becomes ₩50,000 + ₩20,000 (dual-career) = ₩70,000/day
The dual-career couple premium
The dual-career premium is South Korea’s primary mechanism for encouraging shared parental leave. When both parents are employed and both take childcare leave, each receives a 20% top-up on the base EI rate for the overlapping period.
This premium applies only during the overlap — if one parent takes leave before the other, the premium starts when both are on leave simultaneously.
Employer obligations
South Korean employers have specific obligations under the Labour Standards Act and Employment Insurance Act:
- Grant leave. Employers must grant childcare leave to eligible employees. Refusal is a violation and can result in criminal penalties (imprisonment up to 3 years or fines up to ₩30 million).
- Process EI claims. Employers must submit the EI claim to the Employment Insurance office and advance the employee’s salary during the leave.
- No disadvantage. Employers cannot terminate, demote, or otherwise disadvantage an employee for taking or requesting childcare leave. The employee can file a complaint with the Labour Relations Commission.
- Continue social insurance. Health insurance, pension, and employment insurance contributions continue during the leave. The employer pays both portions, recovering the employee portion from the EI reimbursement.
- Small employer subsidies. Employers with fewer than 30 employees can apply for government subsidies to offset the cost of the employee’s salary during the leave. This is not automatic — the employer must apply.
Employer subsidies for small businesses
The government provides subsidies to employers with fewer than 30 employees who grant childcare leave. The subsidy covers up to:
- 3 years of childcare leave (the employee’s full salary up to the EI cap) for the first child.
- The subsidy is paid through the Employment Insurance fund and requires a separate application.
This incentive is designed to reduce the financial burden on small businesses that might otherwise discourage employees from taking leave.
Common employer pitfalls
1. Refusing leave because the employee has not been employed long enough
The 6-month threshold applies to continuous service with the same employer. An employee who transferred from another employer and has been continuously employed for 6+ months qualifies.
2. Not applying for small employer subsidies
The subsidy is not automatic. Employers with fewer than 30 employees who fail to apply leave money on the table.
3. Making adverse employment decisions during or after leave
Transfer, demotion, or unfavourable evaluations during or immediately after childcare leave are treated as retaliatory. Document all employment decisions carefully.
4. Confusing childcare leave with maternity leave
These are separate entitlements. Maternity leave is 90 days under the Labour Standards Act and is separate from the 1-year childcare leave.
5. Not tracking the 1-year limit
The employee must return to work after 1 year (or 2 years if no childcare place). If the employee does not return, the employer may be entitled to recover the salary paid during the leave — but only if the employee left voluntarily or without just cause.
Putting it into practice
Five steps keep South Korean parental leave compliant:
- Confirm the employee’s EI eligibility and 6-month service threshold before processing the leave request.
- Set up the EI reimbursement process through the Employment Insurance office and ensure monthly claims are filed.
- Track the dual-career premium eligibility when both parents are in employment and apply it during the overlapping leave period.
- Apply for small employer subsidies if the company has fewer than 30 employees.
- Maintain social insurance contributions throughout the leave and recover the employee portion from the EI reimbursement.
Leave Balance handles the full parental leave lifecycle for South Korean teams — from initial request through EI reimbursement tracking, dual-career premium calculation, small employer subsidy applications, and return-to-work planning. Built for Korean labour law, designed for teams that want to stay compliant without the paperwork burden.
Sources
- Ministry of Employment and Labour — Childcare Leave (primary source)
- Labour Standards Act
- Employment Insurance Act
Last updated: 26 July 2026. This article is general guidance, not legal advice. EI rates and caps change annually — confirm current figures with the Ministry of Employment and Labour.