'Expansion of Annual Leave and Hourly Usage' Introduction Promotion

The government is overhauling the annual leave system to strengthen the rights of workers to take breaks.

On the 18th, the Ministry of Employment and Labor announced, "Through amendments to the Labor Standards Act, we will ensure a minimum of 15 days of annual leave for employees who have worked for more than six months, and unused leave can accumulate for up to three years to be used all at once."

Employees will also be able to freely utilize their annual leave in hourly increments rather than just daily. The expansion of leave days based on years of service and the prohibition of disadvantages for employees who take leave will be explicitly defined.

Improvement of Long Working Hours and Implementation of Presidential Promises

This initiative is being pursued with the aim of correcting Korea's long working hour practices.

As of 2023, the annual working hours for Korean workers is 1,872 hours, which is 130 hours longer than the OECD average (1,742 hours), while the hourly labor productivity is only $51, significantly lagging behind the U.S. ($83.6) and Germany ($83.3). Criticism has been continuously raised that Korea's annual leave, between 15 to 25 days, is insufficient compared to developed countries.

President Lee Jae-myung has pledged to expand annual leave, stating during his campaign that "insufficient breaks exhaust workers' lives." The government plans to implement some systems starting next year and aims for a full introduction by 2027 after social dialogue.

Alongside the annual leave reforms, support measures for childcare and childbirth will also be strengthened. The current paid leave for infertility treatment will gradually increase from 2 days to 2030, and a 'spousal leave' will be established for husbands to assist their wives who have experienced miscarriage or stillbirth.

Additionally, male employees will be allowed to use parental leave during pregnancy, and the introduction of childcare benefits for the self-employed will be considered. However, there are concerns that this may increase the burden on small and medium-sized enterprises.

Noh Min-seon, a researcher at the Korea Small Business Institute, pointed out, "Unlike large corporations, small business owners, who lack manpower and capital, may face significant burdens. Support measures for small businesses should accompany the reform for it to be effective."

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