Implementation of the Elderly Employment Promotion Subsidies System Starting from 2022
- Supporting the owners of SMEs with a growing number of employees aged over 60 -
□ The Ministry of Employment and Labor(Minister An, Kyung-duk) stated that the Elderly Employment
Promotion Subsidies system aimed at promoting long-term employment among seniors has been implemented
starting from January 1, 2022.
ㅇ As a new system launched from 2022, Elderly Employment Promotion Subsidies aim to stabilize and
promote employment among elderly people by offering partial support to help cover the costs of hiring
seniors at companies targeted for preferential support and medium-sized companies, which have a growing
number of employees over the age of 60.
ㅇ In preparation for Korea becoming a super aged society, this system was established to help the elderly
work until their preferred age of retirement by creating conditions favorable to the employment of seniors.
□ The main points of Elderly Employment Promotion Subsidies are as follows:
① (Eligibility) Owners of businesses where the monthly number of senior employees who applied during
the period increased more than those who applied for three years prior to immediately before
the application period.
Employees aged over 60 employed on an unlimited contract or for a period that exceeds one year.
② (Level of support) A total of 300,000 won quarterly for each extra person over a period of two years.
③ (Maximum limit) A maximum of 30 employees up to 30 percent of the number of monthly average
insurance subscribers in each quarter(three employees for companies with ten or fewer average monthly
insurance subscribers)
□ Employers who wish to receive subsidies should fill out quarterly applications and post or bring it
to the Employment Center(Corporate Support Team) with jurisdiction over the location of the business,
or apply online through the Employment Insurance website.
□ Deputy Minister for Employment Policy Young-Jung Kim stressed, “The major objective for Korea’s labor
market is to help employees remain in the market for a longer period of time.”
ㅇ He added, “We will be sure to promote the use of Elderly Employment Promotion Subsidies and oversee
the implementation of the system in order to ease the burden of hiring seniors on companies
and help the elderly enjoy greater employment stability and quick reemployment if they do lose their job.
ㅇ The government will continue to actively promote policies to stimulate employment for the elderly.
These policies include setting up the ‘new start’ credit system for middle-aged and senior employees,
overhauling the delivery system for employment services and improving the standard of services
that help employees who are set to lose their jobs get rehired.”