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23. Q&A related to issuing monthly unpaid parental leave allowances at the beginning of the month

Q1: What was the amendment made to Article 19-2 of the Enforcement Rules of the Employment Insurance Act? When was the amendment implemented?
A1: On May 14, 2015, the Ministry of Labor amended Article 19-2 of the Enforcement Rules of the Employment Insurance Act, stipulating that the monthly unpaid parental leave allowances will be issued at the beginning of the month instead of at the end of the month. In addition, a month of allowances shall be issued instead of allowance less than a month.

Q2: Why is the monthly unpaid parental leave allowances issued at the beginning of the month instead of month end?
A2: Because employees have no income during their unpaid parental leave. To immediately alleviate their economic pressure for daily expenses and shorten their waiting period, the monthly allowances shall be paid at the beginning of the month instead of at the end of the month. After implementation of the amendment, each recipient will receive their monthly allowances one month in advance. For example, previously, employees who applied for unpaid parental leave during June 1, 2015 to November 30, 2015, will receive their first installment (the allowances for June 1-30) only 13-15 days after June 30 (10 days of review as required by law and 3-5 days for bank transfer). After the amendment, the first installment (the allowance for June 1-30) will be reviewed on June 1, and recipients may receive the payments after approximately 15 days, and the same principle applies for the second installment (the allowances for July 1-31). Thus, each recipient can receive their monthly allowances 1 month in advance.

Q3: Can people who are in the process of applying for unpaid parental leave allowances also receive their allowance in advances?
A3: Yes. After the amendment, employees who are in the process of applying for the allowances may receive their next allowance in advance. For example, an employee is granted parental leave for the period March 1, 2015-September 30, 2015, and has already received 2 months of allowances (March 1-April 30). The third installment (allowances for May 1-31), which initially would have been reviewed only after May 31, will be reviewed on May 16, 2015 (after the amendment). The same applies for the fourth installment (allowances for June 1-30), which will be reviewed starting on June 1 and will be issued early in advance.

Q4: In continuation of Q3, how would employees receiving unpaid parental leave allowance know that their allowances has been paid into their account?
A4: In order to clearly reflect the number of installments paid and deposited items on the recipients' bank passbooks, the Bureau of Labor Insurance has also adjusted the description shown on the passbook after the amendment was approved. Thus, the description is modified to present "Parental Leave 1", "Parental Leave 2" through to "Parental Leave 6" depending on which installment was received.

Q5: How should the allowances be calculated for employees who have not surpassed one month and have been reinstated early?
A5: Previously, if employees who were on 4 months of unpaid parental leave are reinstated 15 days earlier, they could only receive the allowances for up to the day before reinstatement, that is, 3.5 months of allowances. After the amendment, even if the employee is reinstated earlier than expected, a full month of allowance will be issued, meaning that the employee may still receive 4 months of allowances.

Last Update:2019-10-21