Parental Leave Benefits No Longer Withhold a 25% Deferred Payment -- Monthly Caps That Change by Month, and the 6+6 Parental Leave Program

Why the Deferred Payment Existed, and Why It Was Scrapped

The deferred payment withheld 25% of a parent's benefit during the leave itself, paying it out only after the parent returned to work and stayed employed for at least six months. The idea was to discourage people from taking leave and then quitting right away, but in practice it meant that parents who needed the money for everyday living expenses were missing a quarter of every payment while they were actually off work. Under the amended Employment Insurance Act that took effect January 1, 2025, the Ministry of Employment and Labor abolished the deferred payment and switched to paying the full benefit every month during the leave itself.

Instead, the Monthly Cap Now Changes Every Few Months

Through 2024, the benefit was close to a flat rate for the entire leave: 80% of ordinary wages, capped at 1.5 million won a month. Starting in 2025, the cap moved to a three-tier schedule. Months 1 through 3 are capped at 2.5 million won a month, months 4 through 6 are capped at 2 million won, and from month 7 onward the cap drops to 1.6 million won. Because the early months pay more and the later months pay less, the total you end up receiving over a year depends heavily on when and how you split up the leave.

The Payment Rate Also Splits at the Six-Month Mark

It isn't just the cap that changes -- the underlying payment rate shifts too. Months 1 through 6 are calculated at 100% of ordinary wages, while from month 7 onward the rate drops to 80%. If 100% (or 80%) of your ordinary wage comes out higher than that month's cap, you only receive the cap amount; if it comes out lower, you receive the calculated amount instead. There is also a floor of 700,000 won a month, so even parents whose ordinary wage produces a lower calculated amount are guaranteed at least that much.

When Both Parents Take Leave, the Cap Climbs Even Higher -- the 6+6 Parental Leave Program

If both parents each take parental leave for the same child while the child is within 18 months of age, the "6+6 Parental Leave Program" kicks in. It doesn't matter whether the parents take leave at the same time or in sequence -- the only requirement is that the child be within 18 months old as of each parent's own leave start date. Under this program, the first six months of each parent's leave are calculated at 100% of ordinary wages, but under a separate, higher cap schedule than the standard parental leave benefit.

The 6+6 Cap Climbs Every Month, Reaching 4.5 Million Won by Month Six

The 6+6 cap that applies to each parent individually runs as follows: month 1, 2.5 million won; month 2, 2.5 million won; month 3, 3 million won; month 4, 3.5 million won; month 5, 4 million won; and month 6, 4.5 million won. If both parents take leave over the same stretch, that means a household can receive up to 9 million won a month combined. Once month 7 arrives, the special schedule ends and each parent reverts to the standard parental leave benefit (capped at 1.6 million won, 80% of ordinary wages).

When and Where to Apply

Parental leave benefits are never filed automatically by your employer. You must apply yourself, starting one month after your leave begins and no later than 12 months after it ends -- miss that window and the payment simply won't be made. Applications can be filed online through Work24 (work24.go.kr) or in person at the employment center covering your home address or workplace. Because you'll need a leave confirmation document issued by your employer, it's easiest to request that from HR ahead of time.

What If You Were Already on Leave When the Rules Changed?

Even if you started your parental leave before January 1, 2025, any portion of the leave actually taken after that date is paid under the higher caps and the new no-deferral method. In other words, what matters is the month the payment covers, not the month you started your leave. On the other hand, months that were already paid out under the old system before the change took effect are not recalculated retroactively, so any deferred payment already disbursed under the old rules cannot be reclaimed under the new one. For the exact cutover for your situation and a calculation based on your own ordinary wage, it's best to check with your local employment center or the Ministry of Employment and Labor's customer center (1350).

If you're planning around parental leave benefits, it's worth checking whether you can combine them with reduced working hours for childcare, which lets you keep working shorter days instead of taking full leave. If your child is still very young and you need to take time off in short stretches first, the short-term parental leave program, taken in one- or two-week blocks, runs separately from the parental leave benefit described here. And if it's not childcare but another family member who needs care, a separate 90 days of family care leave and 10 days of care leave exist as their own program, while parents facing pregnancy loss can check the spouse miscarriage and stillbirth leave rules first.

The deferred-payment repeal and the cap increase came out of the same reform, but the resulting math is actually more layered than before. Before you apply, it helps to work out which tier your leave start month and expected ordinary wage fall into -- that groundwork makes both the employment center consultation and the conversation with your employer go a lot faster.