The small business employment incentive is a government policy that supports newly hired workers at small businesses. It's designed to encourage young talent to join small enterprises and reduce labor cost burdens for companies. In 2026, the scope of support has expanded further and payment amounts have increased. Both individuals and companies can benefit—individuals can apply directly, or companies can apply on behalf of their employees.
To receive the small business employment incentive, you must first meet basic requirements. The primary target is young people aged 18 to 34 years old, and starting in 2026, people aged 35 to 39 who face employment difficulties are also included. However, you must have been unemployed for a certain period after graduation, and graduate students or those from high-income households may be excluded.
The employer's conditions are also important. You must be newly hired at a small business with assets of 5 billion won or less, and must be expected to work for at least 3 months. Additionally, you must be enrolled in employment insurance at the time of application, and there may be exclusion periods if you've previously received employment incentives at the same workplace.
Based on 2026 standards, you can receive between 500,000 and 700,000 won per month. The support period is up to 12 months, and payments are made monthly rather than in a lump sum. If you meet certain conditions (such as being low-income or facing employment difficulties), the payment amount may be increased by 30-40%.
The Ministry of SMEs and Startups or the Ministry of Employment and Labor deposits the funds directly into your personal account, typically within 2 months after application. After that, funds are deposited automatically each month, so you don't need to reapply—just maintain your eligibility conditions.
Online application is the standard method. You can apply through Work-Net, the Ministry of Employment and Labor's integrated employment support system, or your local government's youth employment incentive system. Applications are accepted year-round, but it's advantageous to apply in early first half of the year since the program closes once the budget is exhausted.
Required documents for application include:
Documents are uploaded as scans or photos, and if additional documents are requested, you must submit them within the specified deadline.
Fraudulent receipt of employment incentives is strictly investigated and penalized. You must repay all received amounts and face surcharges of 20-50% or more. Pay special attention to the following:
If eligibility conditions are unclear, it's safe to consult with your local employment center or government office before applying.
In addition to individual applications, companies can apply directly to receive support funds for their employees. In this case, the company must meet small business standards and have a minimum number of new hires. While funds are deposited into the company account, they should ideally be used to improve employee welfare. Even when companies apply, verifying workers' eligibility is essential, so documents must be prepared carefully.
This article is information compiled and provided by AI through analysis of various sources. For more accurate details, please confirm with relevant institutions or professionals.
