Government Relaxes Tax Credit Requirements for Companies Employing Women – Deputy Prime Minister Announces New Social Mobility Plan

The government is relaxing tax credit requirements for companies that employ women who are taking a break from their careers. We intend to remove the condition that provides tax benefits only to those who are re-employed in the same business before their retirement. To extend the spouse’s participation in childcare, we are considering an extension of the husband’s maternity leave, which is currently up to 10 days. The government plans to announce a social mobility plan containing these contents in early May.

Deputy Prime Minister and Minister of Strategy and Finance Choi Sang-mok led a press workshop at NH Nonghyup Life Insurance’s Sejong Education Center in Sejong City on the 26th and said, “If you hire a woman young, you will receive integrated income tax support. , but the current requirements are strict,” and “You must be rehired in the same industry.” “We are considering ways to prevent such major restrictions,” he said.

Through a review of the tax law in 2019, the government extended the tax credit benefits given to the company to the ‘same business’ when a young woman re-employs the company she worked for before leaving she resigned. Moreover, this time, it was decided to relax the standards for the same industry.

According to the current rules, if a company hires a young woman, they will receive a tax credit of 15.5 million won per year for up to three years. In detail, a tax credit of 4 million won (2 years) per year is applied to large companies and 8 million won (3 years) per year to medium-sized companies. As for small and medium-sized businesses, those located in the metropolitan area will receive tax benefits of 14.5 million won (3 years) per year, while those located in other regional areas will receive tax benefits of 15.5 million ( 3 years) every year. year.

However, the need to strengthen incentives was raised because the requirements, such as re-employment in the same industry, are strict. The government is also considering the tax credit benefits for the re-employment of women with a career break to men with a career break. Deputy Prime Minister Choi said, “(Women) are worried that their careers will be interrupted, so there are cases where men (after retirement) take a career break while taking care of children, but because they are men, they don’t get this. He said, “There is a plan to give benefits to men who work hard (even when re-employed).” “I’m thinking about it,” he said.

The government is also considering extending maternity leave for spouses, which is currently granted up to 10 days under the Equal Employment Opportunity Act. This is to increase the man’s involvement in childcare.

Measures will also be prepared to increase the level of youth economic activity participation. Firstly, support for employment services such as employment information through the university’s Job Plus Centers and Additional Employment Centers will be strengthened. Current college students and graduates within two years of graduation can receive employment services through the University’s Job Plus Center, and juniors three years after graduation can receive employment services through the Additional Employment Benefits Center. The aim is to increase the level of service use, which is currently limited to 200,000 people per year.

The government plans to ask students applying for national scholarships, of which there are approximately 1.4 million per semester, to fill in employment-related information in the scholarship application form and link this to the Job Center Plus DB (database) to provide current employment information. The plan is to link this data to the Welfare Employment Plus Center so that young people who are unemployed after graduation can receive related services.

The current 8% rate for high school graduates to be employed in management assessments for public institutions will also be increased. This is to build a life cycle social mobility ladder through jobs in a situation where good job opportunities for vocational high school students are decreasing recently.

Deputy Prime Minister Choi said, “Companies that are currently doing well (hiring high school graduates) are also considering analyzing what high school graduates are doing doing now and creating and sharing best practices.”

In addition, the government is also considering a plan to integrate ISA (Individual Asset Management Accounts), which are separated by business.

Deputy Prime Minister Choi said, “In terms of ISA, what banks can do and what investment advisers or securities companies can do are divided by industry, so if possible, we thinking of creating a unified type that combines them, “There are business areas between businesses (“There are problems with integration, but we are thinking of expanding the range of options to receive benefits, such as being lifting the limit on one account per person,” he said.

[저작권자 @머니투데이, 무단전재 및 재배포 금지]