The first half of 2024’s Labor Incentive Application in Korea has been made available for potential applicants to consider.
Starting September 1st and running through to the 19th, any current workers or individuals who fall under the set eligibility parameters can apply for this financial support. This article provides a detailed take on Labor and Child Care Incentives, their eligibility criteria, and payment schedule.
What Are ‘Labor Incentives’ and ‘Child Care Incentives’?
The Labor Incentive program is designed to encourage work and support the actual income of workers who struggle to maintain their livelihood due to their low-income rates. This extends to include business owners with the exception of professionals and religious households based on the composition of the household and the labor income, business income, or religious income.
The Child Care Incentive is designed to support the upbringing of children belonging to low-income households. In households where the total income is less than 70 million won and there are dependents under the age of 18, each person could receive up to a maximum of 1 million won or at least 500,000 won. Except for the total income standard, other requirements for receiving in this fund are the same as the Labor Incentive.
Eligibility Criteria for Labor and Child Care Incentives
All qualifying criteria need to be met by a resident having labor income, business income (professionals excluded) or religious income. These include but are not limited to:
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Household type as of December 31, 2023
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Income requirement
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Property requirement
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Other requirement
Calculation and Application Methods for Labor & Child Care Incentives
The calculation is based on the type of household ‘total salary, etc.’ which refers to labor income, business income, or religious income. There is an ‘incentive calculation table’ that aids in this process and this information can be checked on the HomeTax website.
There are several ways to apply for the incentives which include:
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HomeTax (PC, Mobile)
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Mobile Guidance text
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Automatic Voice Response (ARS)
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In the case of seniors over 60 and the severely disabled, application can be made automatically after their individual consent for a period of two years.
Application & Payment of Labor and Child Care Incentives
Depending on when you apply, there are finer details to keep in mind for different periods.
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The ‘regular portion’ must be applied between May 1 to May 31 of the following year of the taxable income period.
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If not applied during this time, you can apply within six months after the end of the application period (June 1 to November 30).
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If you apply after the deadline, 5 % of the calculated amount will be deducted.
Disadvantages for False Applicants
If an application is made falsely, whether intentionally or due to gross negligence, this will result in a need to repay the incentive and potential banning from receiving any for two or five years. This includes if the Labor (Business) Income Payment Confirmation Statement is issued falsely.
All in all, with a thorough examination of the Labor and Child Care Incentives available, potential applicants should make a point to verify their eligibility and apply by the 19th of September, 2024 if they qualify.
Disclaimer : This content is a translation of material originally published in Korean by the National Tax Service of the Republic of Korea. While efforts have been made to ensure accuracy, this translation is provided for informational purposes only and does not carry legal weight. In the event of any discrepancy, the original Korean version shall prevail. Users should consult the official Korean documents for precise interpretation. This translation does not constitute legal advice. The translators and publishers shall not be held liable for any loss arising from reliance on this translation.