Parental Leave Replacement Subsidy & Net Cost Calculator

Estimate South Korea’s 2026 employer subsidy for a parental-leave replacement and the complete net staffing cost. The dedicated bilingual calculator screens priority-support enterprise, insurance, duration, start-window, employment-adjustment and duplicate-grant conditions; selects the KRW 1.4 million or KRW 1.3 million monthly cap from two insured-headcount dates; applies the 80% wage or dispatch-payment limit, calendar-day proration and other-public-support deduction; and reports handover, leave and post-return support days, monthly cost, claim reference dates and a leave-start hiring comparison. It is a planning estimate and not an employment-center award decision.

2026 rules · official sources checked 2026-08-17

1. Eligibility checks

These answers drive a preliminary screening. The employment center makes the final decision from evidence.

Replacement arrangement

Insured headcount before leave

people

Count on the day before leave begins.

Insured headcount before replacement

people

The lower of the two counts sets the monthly cap tier.

Priority-support enterprise?

Does the leave worker meet insurance requirements?

Does the replacement meet hiring and insurance rules?

Does an excluded-employer condition apply?

Was there a disqualifying employment adjustment?

Generally review from three months before replacement through one year after hire.

Using the same-child special employer grant?

2. Leave and replacement dates

Dates are inclusive. Partial months are prorated using actual calendar days.

Leave start

Leave end

Replacement start

Replacement end

3. Pay and additional costs

Enter employer-paid wages for a direct hire or the dispatch payment. Subsidy cannot exceed 80% of this amount.

Monthly wage paid

KRW

Employer on-cost rate

Planning rate for employer insurance and severance accrual.

Other monthly employment cost

KRW

Recurring benefits, equipment, or workspace costs.

One-time recruiting and training

KRW

Other monthly public support

KRW

Public support for the same cost is deducted from this subsidy estimate.

Estimated replacement subsidy

KRW 12,600,000

Preliminarily eligible

Gross employment cost

KRW 32,090,000

Net employment cost

KRW 19,490,000

Monthly statutory cap

KRW 1,400,000

Cost coverage

39.3%

Pre-handover support

59 days

During leave

183 days

Post-return support

31 days

Handover-start comparison

Compare the current dates with hiring on the leave start date, using the same end date.

Current schedule

Feb 1, 2026

Gross cost: KRW 32,090,000
Subsidy: KRW 12,600,000
Net cost: KRW 19,490,000

Hire when leave starts

Apr 1, 2026

Gross cost: KRW 25,070,000
Subsidy: KRW 9,800,000
Net cost: KRW 15,270,000

Current schedule net-cost difference: KRW 4,220,000

Monthly cost and subsidy

This is an accrual-based planning table, not a payment schedule. Whole-won rounding can create small differences.

Monthly replacement employment cost and subsidy results
Month	Work/support days	Gross cost	Statutory cap	80% cap	Other aid deducted	Subsidy	Net cost
2026-02	28 / 28	KRW 4,010,000	KRW 1,400,000	KRW 2,400,000	KRW 0	KRW 1,400,000	KRW 2,610,000
2026-03	31 / 31	KRW 3,510,000	KRW 1,400,000	KRW 2,400,000	KRW 0	KRW 1,400,000	KRW 2,110,000
2026-04	30 / 30	KRW 3,510,000	KRW 1,400,000	KRW 2,400,000	KRW 0	KRW 1,400,000	KRW 2,110,000
2026-05	31 / 31	KRW 3,510,000	KRW 1,400,000	KRW 2,400,000	KRW 0	KRW 1,400,000	KRW 2,110,000
2026-06	30 / 30	KRW 3,510,000	KRW 1,400,000	KRW 2,400,000	KRW 0	KRW 1,400,000	KRW 2,110,000
2026-07	31 / 31	KRW 3,510,000	KRW 1,400,000	KRW 2,400,000	KRW 0	KRW 1,400,000	KRW 2,110,000
2026-08	31 / 31	KRW 3,510,000	KRW 1,400,000	KRW 2,400,000	KRW 0	KRW 1,400,000	KRW 2,110,000
2026-09	30 / 30	KRW 3,510,000	KRW 1,400,000	KRW 2,400,000	KRW 0	KRW 1,400,000	KRW 2,110,000
2026-10	31 / 31	KRW 3,510,000	KRW 1,400,000	KRW 2,400,000	KRW 0	KRW 1,400,000	KRW 2,110,000
Total		KRW 32,090,000	Before deduction KRW 12,600,000		KRW 0	KRW 12,600,000	KRW 19,490,000

Claim timing and document checklist

Earliest replacement start: Feb 1, 2026
Pre-handover claim reference: May 1, 2026
First three-month claim reference: Jul 1, 2026
Post-return claim reference: Nov 1, 2026
General application deadline reference: Sep 30, 2027

Core evidence

Evidence confirming parental leave
Replacement employment contract and monthly payroll
Dispatch agreement and payment evidence when applicable
Insured-headcount and employment-adjustment evidence
Records of other national or local support

Dates are planning references. Confirm actual claim rounds and deadlines with Work24 and the competent employment center.

Related calculators

Plan Korea's parental-leave replacement subsidy and real staffing cost together

When an employee takes parental leave, the employer must cover the role while preserving a workable return path for the employee. A new direct hire or a dispatched worker can fill the gap, but monthly pay alone does not represent the complete budget. Employer insurance contributions, severance accrual, recruiting, training, equipment, and workspace can materially increase the cost.

The headline subsidy cap is not the amount every employer receives. The result also depends on the priority-support enterprise test, two Employment Insurance headcount dates, a cap equal to 80% of the wage or dispatch payment, partial-month proration, other public support, and documentary eligibility. This calculator applies those layers to the 2026 rules and shows gross employment cost, estimated subsidy, and net employment cost by month.

Screen eligibility

Review employer, worker, duration, employment-adjustment, and duplicate-grant conditions before estimating support.

Estimate support

Apply the lower of the statutory monthly cap and 80% of eligible wages or dispatch payments.

Measure net cost

Combine recurring and one-time staffing costs, then deduct only this estimated replacement subsidy.

A planning estimate is not an award decision

The competent employment center decides whether an employer and worker meet the statutory requirements from actual insurance, payroll, contract, separation, and payment evidence. A preliminary eligible result does not guarantee payment. Confirm current Work24 instructions before signing a replacement contract or relying on the subsidy for cash-flow commitments.

Core 2026 rules

Under Article 29 of Korea's Enforcement Decree of the Employment Insurance Act, a priority-support enterprise may qualify when it grants an insured employee at least 30 days of parental leave and engages a qualifying replacement for at least 30 continuous days. The replacement generally must be newly hired or supplied on or after the date two calendar months before parental leave begins.

The support window can include up to two months before leave for handover, the parental-leave period, and one month after the employee returns. The calculator uses inclusive calendar dates and prorates partial months by the actual number of days in that month. It estimates only days within the 2026 rule year.

Key 2026 parental-leave replacement subsidy rules
Rule	Threshold or cap	Calculator treatment
Parental leave	At least 30 days	Counts both the start and end date.
Replacement engagement	At least 30 continuous days	Also requires overlap with parental leave.
Reference headcount below 30	KRW 1,400,000 per month	Uses the lower headcount from the two reference dates.
Reference headcount of 30 or more	KRW 1,300,000 per month	Applies when the lower reference count is at least 30.
Payment-based limit	80% of wage or dispatch payment	Uses the lower of this limit and the statutory cap.
Partial month	Eligible days ÷ days in month	Prorates both caps and other public support.

Which headcount controls the cap?

Work24 guidance refers to the insured headcount on the day before parental leave starts and the day before the replacement begins. The lower of those two counts determines the cap tier. For example, counts of 28 and 34 produce a reference count of 28, so the calculator uses the below-30 cap.

Why 80% can be the binding cap

If monthly pay is KRW 1,000,000, the payment-based cap is KRW 800,000. That lower amount controls even when the statutory tier allows KRW 1,400,000. For a dispatched worker, use the qualifying payment made to the dispatch provider rather than inventing a notional employee wage.

How the dates and net cost are calculated

The earliest qualifying start is two calendar months before leave. If leave starts on April 15, a February 15 start can fall inside the handover window; a February 14 start is flagged for review and produces no estimated subsidy. The return date is the day after leave ends, and the post-return window runs for one calendar month from that return date.

Labor payment prorates the monthly wage or dispatch payment over actual employment days in each calendar month.
Gross employment cost adds the labor payment, employer on-cost, other recurring cost, and the one-time recruiting or training cost in the first month.
Gross subsidy is the lower of the prorated statutory cap and 80% of the payment attributable to supported days.
Estimated subsidy deducts other national or local support tied to the same cost, with a floor of zero.
Net employment cost subtracts this estimated replacement subsidy from gross employment cost.

Treatment of other public support

Other national or local support for the same staffing cost can reduce this replacement-subsidy estimate. The calculator does not subtract that other support from gross cost a second time. This design isolates the amount expected under this scheme. When preparing a complete company cash-flow model, deduct each confirmed public payment exactly once and preserve evidence showing which cost it covers.

Worked example using the default calculator inputs
Item	Input or result	Interpretation
Replacement period	February through October 2026	Two handover months, six leave months, and one post-return month.
Monthly assumptions	KRW 3,000,000 plus 12%	Adds KRW 150,000 recurring and KRW 500,000 one-time cost.
Gross employment cost	KRW 32,090,000	Nine months of recurring cost plus the one-time amount.
Estimated subsidy	KRW 12,600,000	Nine full months at the below-30 cap of KRW 1,400,000.
Net employment cost	KRW 19,490,000	Gross cost less the estimated replacement subsidy.

Step-by-step use

1. Confirm employer and worker facts

Mark priority-support status, insurance eligibility, excluded-employer conditions, employment adjustments, and same-child grant use from real records.

2. Enter both insured headcounts

Use the Employment Insurance count for the day before leave and the day before replacement engagement, not a casual payroll headcount.

3. Set exact contract dates

Enter inclusive leave and replacement dates that will appear in approved leave and contract records.

4. Build the complete cost

Separate the wage or dispatch payment, employer on-cost rate, recurring overhead, and one-time recruiting or training cost.

5. Compare handover timing

Review the current schedule beside a replacement that starts when leave begins, using the same end date.

6. Prepare claim evidence

Organize leave proof, contracts, payroll or dispatch payments, headcount evidence, and records of other public support.

Practical planning scenarios

A role needs meaningful handover time

Accounting close, safety, production, and key-client roles may justify hiring before leave. Use the comparison to see the added net cash cost of the earlier start. Then weigh that amount against benefits the calculator cannot price, such as fewer operating errors, retained client knowledge, and safer work transfer.

Headcount moves around the 30-person boundary

A growing employer may have different insured counts on the two reference dates. Retrieve both figures from Employment Insurance records. Using year-end headcount, average headcount, or people appearing in a payroll file can select the wrong cap and overstate the budget.

Direct hire versus dispatch

A direct hire usually creates identifiable wage, insurance, recruiting, and training costs. A dispatch fee can bundle several of those items. Model each arrangement separately, and also review whether dispatch is permitted for the work, how quickly the person can become productive, and how the arrangement ends after the employee returns.

Claim timing and documents

Under the Enforcement Rule, the handover-period amount is generally claimed after parental leave begins and 30 days have passed. Leave-period support is applied for in three-month cycles beginning from the month after leave starts. The post-return month is generally claimed after one month has passed from return. The calculator presents calendar reference dates, but those dates are not a guarantee of the portal's submission or payment date.

Keep the leave approval or personnel order showing exact leave dates.
For a direct hire, retain the employment contract, monthly payroll, and proof of wage payment.
For dispatch, retain the dispatch agreement and proof of each qualifying payment.
Document the leave worker's and replacement worker's insurance status and both reference-date headcounts.
Identify national or local support connected to the same employment cost.
Review employment-adjustment separations during the statutory restriction period.

Check employment adjustments and duplicate grants early

A disqualifying employment-adjustment separation during the review period can prevent support. The same-child special employer grant for parental leave also may not be combined with the replacement subsidy. The calculator sets estimated support to zero when these answers indicate a conflict, but it cannot resolve legal exceptions or classify an actual separation.

Frequently asked questions

Can an employer hire earlier than two months before leave and claim only the later period?

The rule requires the replacement to be newly hired or used on or after the two-calendar-month boundary. This calculator flags an earlier start and estimates zero subsidy. Ask the employment center about unusual facts before changing or signing the contract.

What if the replacement stays longer than one month after return?

Employment cost continues through the entered replacement end date, but estimated subsidy stops after the one-month post-return window. Unsupported cost therefore remains in net employment cost.

Does every small business receive the KRW 1.4 million cap?

No. The employer must first qualify as a priority-support enterprise, and the lower insured headcount on the two specified dates must be below 30. The cap is still limited to 80% of qualifying payment.

Is the monthly table a bank-payment schedule?

No. It allocates cost and subsidy to the calendar month in which the replacement is used. Actual application review and payment dates depend on Work24 processing and the employment center.

Why is other public support not deducted from net cost twice?

The input reduces the estimated replacement subsidy because the scheme can deduct overlapping public support. It is not subtracted again from gross cost. In a full cash-flow model, deduct each independently confirmed grant once.

Official basis and update scope

The rules were checked on August 17, 2026 against the Employment Insurance Act, Article 29 of its Enforcement Decree, Article 51 of its Enforcement Rule, MOEL Notice 2026-52 and its attached payment standards, and Work24 guidance. The 2026 guidance reflects caps of KRW 1.4 million below 30 insured persons and KRW 1.3 million at 30 or more, together with payment during the supported use period rather than a deferred half-payment structure for new 2026 cases.

Regulations can change. Do not apply this calculator unchanged to 2027 periods or to transition cases that began before 2026. Reconcile the calculation with the current official notice, Work24 application screen, and advice from the competent employment center.

Turn the leave notice into a dated staffing budget

Recheck the two insured headcounts and contract dates, compare the handover schedule with a leave-start hire, and use the monthly table as the starting point for your internal budget and claim file.

Return to calculator inputs