Many workers are unaware of the various government subsidies and benefits available to them! In this article, we’ll explore the different subsidies and benefits the government offers for workers. We’ve covered almost all of the support policies for workers, but we’ll fill in the gaps as we go.
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Work incentives
Workfare is an income support program that pays low-income workers to make ends meet based on the IRS’s household size, income, and asset requirements. There is also a child subsidy program for low-income households (at an annual income of less than 40 million won).
Household counting and income requirements and maximum payments
Type | How to count household members | Income requirements | Maximum Earned Income Tax Credit Payments |
---|---|---|---|
Single-family homes | (1) No spouse and dependent children; (2) No direct dependents over the age of 70; and (3) Living with siblings qualifies as a single-family home. | Work incentives: less than 22 million won per year | 1.65 million |
Home Furnishings | You have a spouse (with a gross salary of less than 3 million won) or dependent children; or ② You have an immediate family member who is 70 years old or older. | – Work subsidy: less than 32,000 won per year – Child subsidy: less than 4,000 won per year | 2.85 million |
Household | Applicant and spouse each have a total salary of 300,000 won or more | – Work subsidy: less than 38 million won per year – Child subsidy: less than 40 million won per year | 3.3 million |
Effective for applications on or after January 1, 2023, the property requirements have been relaxed. The chart below is a good place to start.
分类 | Before Revision | Post-amendment (for applications filed on or after January 1, 2023) |
---|---|---|
Threshold Amount | Property totaling less than $200 million | Property totaling less than $240,000 |
Property Classification | Total amount of land, buildings, cars, deposits, etc. | Total amount of land, buildings, cars, deposits, etc. |
Payout Ratio | – Under $140K, 100% live, work, and child incentives – If you make more than $140 million but less than $200 million, you get 50% of the work and child incentives | – Under $170K, 100% live, work, and child incentives – If you make more than $170,000 but less than $240,000, you get 50% of the work and child incentives |
When and how to apply for benefits
In 2023, you can file for benefits in three separate periods. You’ll receive written or mobile instructions and can apply by phone, hand-delivery, or home delivery.
If you didn’t receive an application notice, you can check your eligibility and apply from home.
- H2 ’22: March 1, 2023 to March 15, 2023
- ’22 Regular: May 1 through May 31, 2023
- First half of ’23: September 1, 2022 to September 15, 2022
Youth Empowerment Account
The Youth Leapfrog Account is a program to help young people build mid- to long-term assets, allowing young people with personal income of 60 million won or less to build up to 50 million won in assets after five years.
Any young adult between the ages of 19 and 34 (excluding military service) who meets the criteria for individual income (60 million won or less) and household income (180% or less of the median income) can apply. However, you can’t sign up if you’ve been subject to the financial income tax at least once in the three years immediately preceding your account application.
In 2023, 180% of median household income looks like this
Number of people in the household | 1 person | Two-person | 3 people | 4 people | 5 people | 6 people |
---|---|---|---|---|---|---|
180% of median income | Approx. 373,000 KRW | Approx. 622 million won | Approx. KRW 798,000 | Approx. KRW 972,000 | Approx. KRW 1139 | About 13 million won |
For more information, see here.
Transportation Assistance Program
There are several transportation subsidies available, including the Affordable Transportation Card and a combined subway and bus pass. These schemes make it easier for workers who use public transportation to get to work while reducing transportation costs. It’s not just for workers, it’s for anyone over the age of 19 who rides public transit with an affordable transit card at least 15 times a month.
You can apply for the card on the official website.
Worker Leave Assistance Business
The Worker Vacation Assistance Program is a joint government and business program that covers domestic travel expenses for workers. The main features of the scheme are to increase employee satisfaction and work efficiency, while improving the company’s productivity and reducing benefits costs. As of the end of July 2023, the application is unfortunately closed. It’s good to know for next year. You can read more about this here.
Target | Submissions | Remarks |
---|---|---|
Small and medium-sized businesses | One copy each of small business verification and business license | Small business verification can be obtained from the Small Business Status Information System (http://sminfo.mss.go.kr/) |
Midsize Businesses | One copy of each of the Small Business Certificate and Business License | Small business verification can be obtained from the Korea Federation of Small Businesses (https://www.mme.or.kr/intro.html) |
Nonprofit private organizations | One copy of each of the following: nonprofit civilian organization registration certificate, unique number card, or business license | |
Social Security Corporation | One copy of each of the social enterprise establishment permit, unique number card, or business license | |
Social Services | One copy of each of the social welfare facility report card, unique number card, or business registration card | Required to specify the underlying law in the social welfare facility certificate |
Medical corporations | One copy of each of the medical corporation establishment permit, unique number card, or business license |
Companies have a role to play in creating a good work environment. Therefore, it’s important for companies to actively communicate and publicize these types of subsidies and benefits so that workers don’t miss out and can take advantage of them.
Today, we’ve briefly touched on state subsidies for workers. We’ll provide more details in a separate post or in this one.
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