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ENFORCEMENT DECREE OF THE EMPLOYMENT INSURANCE ACT Enforcement Date 01. Jan, 2016Article 28

发布人:春秋智谷  /  发布时间:2021-04-12 14:43:59  

Article 28 (Subsidies for Wage Peak System) (1) The Minister of Employment and Labor shall grant subsidies for the wage peak system to workers to whom the wage peak system shall apply in any of the following cases, as prescribed in Article 23 of the Act, (hereafter referred to as "wage peak system" in this Article): Provided, That in cases falling under subparagraph 2, he/she shall grant subsidies for the wage peak system to both the workers and the business owner:   <Amended by Presidential Decree No. 22603, Dec. 31, 2010; Presidential Decree No. 24333, Jan. 25, 2013; Presidential Decree No. 25022, Dec. 24, 2013; Presidential Decree No. 25955, Dec. 31, 2014>  <<  Period of Validity: refer to Article 2 of the Addenda to this Decree >>

 

1.Where a business owner implements a system under which an employee has his/her wage reduced based on his/her age, period of continuous employment or wage after he/she reaches the age of 55, with the consent of the representative of employees , in return for extension of the retirement age to at least 60 or to at least 56 but not more than 60;

 

2.Where a business owner reduces working hours while implementing the system prescribed in subparagraph 1 or re-employment pursuant to subparagraph 4, and thereby reducing the contractual weekly working hours to at least 15 hours but not more than 30 hours;

 

3. Deleted;  <by Presidential Decree No. 25022, Dec. 24, 2013>

 

4.Where a business owner who set the retirement age at 55 or older decides to re-employ (excluding cases where the period of the re-employment is less than one year) a person, who has reached retirement age, and to reduce his /her wage compared to the amount he/she received before the previous retirement.

 

(2) The subsidies for the wage peak system determined under paragraph (1) shall be paid to persons who have been employed continuously for at least 18 months by the relevant business owner and that sees his/her peak wage compared to his/her wage for the pertinent year (referring to the wage of the year that immediately precedes the year when the date of the first reduction of wage following implementation of the wage peak system belongs; hereinafter the same shall apply in this Article) reduced by at least the ratio classified as prescribed in each of the following (excluding the person whose wage for the pertinent year reaches or exceeds the amount publicly notified by the Minister of Employment and Labor):  <Amended by Presidential Decree No. 22269, Jul. 12, 2010; Presidential Decree No. 22603, Dec. 31, 2010; Presidential Decree No. 23513, Jan. 13, 2012; Presidential Decree No. 24333, Jan. 25, 2013; Presidential Decree No. 25022, Dec. 24, 2013; Presidential Decree No. 26690, Dec. 4, 2015>  <<  Period of Validity: refer to Article 2 of the Addenda to this Decree >>

 

1.In the case of paragraph (1) 1: The ratio classified according to the extended retirement age as follows: Provided, That it shall be 10/100 for any business that has less than 300 full-time employees:

 

(a) Up to one year from the date of application of the wage peak system: 10/100;

 

(b) For a period of up to two years but no shorter than one year from the date of application of the wage peak system: 15/100;

 

(c) For a period exceeding two years after the date of application of the wage peak system: 20/100;

 

2. In the case of paragraph (1) 2: 30/100;

 

3.In the case of paragraph (1) 4: 20/100: Provided, That it shall be 10/100 for any business that has less than 300 full-time employees.

 

(3) Subsidies for the wage peak system prescribed in paragraph (1) shall be an amount publicly notified by the Minister of Employment and Labor, considering the difference between the peak wage and the pertinent year's wage of the pertinent individual worker, the wage increase rate, an increase in the labor cost of the business owner due to the reduction of contractual working hours prescribed in paragraph (1) 2, etc.  <Amended by Presidential Decree No. 22269, Jul. 12, 2010; Presidential Decree No. 22603, Dec. 31, 2010; Presidential Decree No. 25955, Dec. 31, 2014>

 

(4) Subsidies for the wage peak system prescribed in paragraph (1) shall be paid for five years from the date the wage peak system enters into force: Provided, That when the employment period is less than five years, the subsidies shall be paid for the employment period, and when re-employment is made pursuant to paragraph (1) 4 after the enforcement of the wage peak system prescribed in paragraph (1) 1, the maximum period of payment shall be five years in total.  <Amended by Presidential Decree No. 25022, Dec. 24, 2013>  <<  Period of Validity: refer to Article 2 of the Addenda to this Decree >>

 

(5) Matters necessary to calculate, to apply for and to pay the subsidies for the wage peak system prescribed in paragraph (1) shall be prescribed by Ordinance of the Ministry of Employment and Labor.  <Amended by Presidential Decree No. 22603, Dec. 31, 2010>

 

Article 28-2 (Subsidies for the Reduction of Wages in Business or Business Place Having Set Retirement Age at 60 or More) (1) Where a business or business place which has set the retirement age at 60 or more implements the system of reducing wages after the age of 55, the Minister of Employment and Labor shall, pursuant to Article 23 of the Act, grant the subsidies beginning with the date the system of reducing the wages of the relevant workers who saw their wages reduced enters into effect and ending on December 31, 2018: Provided, That where the employment period of the relevant workers ends before December 31, 2018, the subsidies shall be paid during the relevant employment period.

 

(2) The subsidies determined under paragraph (1) shall be paid to persons who have been employed continuously for at least 18 months by the relevant business owner and sees that his/her peak wage (referring to the wage of the year that immediately precedes the year when the date of the first reduction of wage following implementation of the system pursuant to paragraph (1) belongs; hereinafter the same shall apply in this Article) compared to his/her wage for the pertinent year reduced by at least 10 percent ( excluding the person whose wage for the pertinent year reaches or exceeds the amount publicly notified by the Minister of Employment and Labor).

 

(3) The amount of subsidies prescribed in paragraph (1) shall be determined and publicly notified by the Minister of Employment and Labor according to the standards prescribed by Ordinance of Minister of Employment and Labor in consideration of the difference between the peak wage and the pertinent year's wage of the pertinent individual worker, the wage increase rate, etc. of the relevant worker.

 

(4) Matters necessary to apply for and to pay the subsidies etc. referred to in paragraph (1) shall be prescribed by Ordinance of the Ministry of Employment and Labor.

 

[Newly Inserted by Presidential Decree No. 26690, Dec. 4, 2015]

 

Article 28-3 (Subsidies for Reduction of Working Hours) (1) Where a worker aged 50 or more who has been employed continuously for at least 18 months sees his/her wage for the pertinent year reduced compared to the wage of the year that immediately precedes the year when the date of the first reduction of wage as a result of the reduction of weekly working hours by business owner according to the standards of hours publicly notified by the Minister of Employment and Labor, the Minister of Employment and Labor shall, pursuant to Article 23 of the Act, grant the subsidies for reduction of working hours to the relevant workers and business owners from the day of reducing working hours for a maximum of two years limited to the employment period of the relevant workers.

 

(2) The amount of subsidies for reduction of working hours prescribed in paragraph (1) shall be determined and publicly notified by the Minister of Employment and Labor according to the standards prescribed by Ordinance of Minister of Employment and Labor in consideration of the difference between the wages of the year immediately preceeding the year of reducing working hours and the wages of the relevant year of the relevant workers and indirect labor cost of the business owner, etc.

 

(3) Matters necessary to apply for and to pay the subsidies etc. for reducing working hours referred to in paragraph (1) shall be prescribed by Ordinance of the Ministry of Employment and Labor.

 

[Newly Inserted by Presidential Decree No. 26690, Dec. 4, 2015]