Dec. 29, 2017
If an employer obligated to employ people with disabilities fails to comply with that obligation in 2018, he/she will have to pay 945,000 won~1,573,770 won per month in penalty levies for each disabled person he/she falls short of the mandatory employment quota.
◈ Employers obligated to employ people with disabilities: state agencies, local governments and public institutions and private companies with 50 employees or more
◈ Mandatory employment quota for disabled people: 3.2% for state agencies/local governments (public officials) and public institutions and 2.9% for state agencies/ local governments (employees who are not public officials (i.e. non-public officials)) and private companies
◈ Employers who have to pay the levy: non-public official sectors of state agencies/local governments (The levy system will apply to public official sectors from 2020.), public institutions and private companies with 100 employees or more which employ fewer disabled people than the mandatory employment quota
The Ministry of Employment and Labor (MOEL) has announced the 2018 'basic amount of levy for employment of people with disabilities'* after consultation with other relevant government agencies and deliberation by the Employment Policy Council (Special Committee on Employment Promotion for Disabled People).
* Basic amount of levy for employment of people with disabilities
The basic levy rate is determined and announced by the Minister of Employment and Labor at a level equal to or higher than 60% of the monthly minimum wage on the basis of the average amount of additional costs incurred each month due to the employment of people with disabilities. It goes up based on the proportion of employees with disabilities, and if no disabled person is employed, the basic levy rate is equal to the monthly minimum wage.
☞ The monthly minimum wage for 2018 is 1,573,770 won, and 60% of that amount is 944,262 won.
The levy for employment of people with disabilities is imposed to ensure the effectiveness of the mandatory employment quota for disabled people and to evenly distribute the financial burden caused by the employment of disabled people between employers who employ disabled people and those who do not.
If a non-public official sector of a state agency or local government, a public institution or a private company with 100 employees or more falls short of the mandatory employment quota for disabled people (2.9% for non-public official sectors of state agencies and local governments, 3.2% for public institutions and 2.9% for private companies), it should pay the amount of levy calculated based on the basic levy rate which is different according to the extent of the shortfall (i.e. proportion of employees with disabilities).
Employers who fall short of the mandatory employment quota in a certain year should voluntarily report and pay the amount of levy corresponding to the shortfall no later than January 31st of the following year. They can also make such a report and payment online (www.esingo.or.kr).