Parental Leave Benefits: What's Your Actual Take-Home Amount?
If you're planning parental leave, the first thing to confirm is your actual payment amount. As of 2026, parental leave benefits provide a certain percentage of regular wages, with the first 3 months covering 100% of regular wages up to a maximum of 1.8 million won per month. For months 4-12, you receive 80% of regular wages, up to a maximum of 1.44 million won per month. However, this is the amount before tax deductions, so your actual deposit will be less.
For example, if an employee earning 3 million won per month goes on parental leave, they receive 1.8 million won for the first 3 months and 1.44 million won for the next 9 months. After income tax and local income tax are applied, the net amount becomes approximately 1.7 million won and 1.35 million won respectively. Since this represents only 50-60% of your previous salary, financial planning must account for this reduction.
Tax Refunds You Must Claim Before Taking Leave
Many parents overlook tax refund applications. When your annual income drops significantly due to parental leave, you can claim refunds on taxes you've already paid. This is especially important if you earned high income in the previous year.
- Income tax refunds: During year-end settlement in the leave year, if your annual income is lower, taxes you've already paid can be refunded. For example, if you earned 3 million won monthly from January to June and 1.8 million won from July to December, you can recalculate your annual taxes and claim a refund.
- Social insurance premium refunds: Parental leave benefits don't factor into health insurance calculations, so insurance premiums are determined by 3 months of full employment recognition. This may result in overpaid insurance premiums that can be refunded.
- Special income deductions: If you can prove amounts spent on childcare expenses, you may receive additional deductions. Keep receipts for childcare fees, education expenses, etc.
Year-end settlement typically occurs at your workplace in February, so even while on leave, you must notify your company of your exact leave dates to ensure correct year-end settlement.
Utilizing Social Insurance Premium Support During Leave
The government operates programs to ease the social insurance burden on parents on parental leave. Generally, employment insurance and industrial accident insurance are covered by the employer, while health insurance and national pension insurance are covered by the employee.
Starting in 2026, expanded insurance premium support policies for parental leave are being implemented. Low-income parents in particular can receive support for part of their health insurance premiums, so check with your local community center or the Ministry of Employment and Labor customer center to see if you qualify. Since monthly insurance premiums vary from tens of thousands to hundreds of thousands of won, confirming beforehand can reduce your living expense deficit.
Practical Strategies to Cover the Salary Gap During Leave
If parental leave benefits aren't enough to cover living expenses, you can employ several strategies. First, utilize spousal income deductions. If your spouse's income during parental leave is 1 million won or less, they qualify for spousal deduction, allowing you to claim more tax refunds.
Additionally, child tax credits and childcare expense tax credits can be maximized with professional help. Especially if you have two or more children, the childcare expense tax credit is substantial, so keep childcare receipts carefully. As of 2026, you can claim up to 1 million won per month in childcare expenses per infant as a tax credit.
Part-time work is also an option. Even during parental leave, you can work part-time for up to 15 hours per week to earn additional income. However, check your company's policy first and consider the impact on employment insurance calculations.
Financial Reorganization Plan After Returning from Leave
Upon returning to work after parental leave expires, salary stabilization takes time. An adjustment period of 2-3 months may be needed due to salary differences before and after leave, so it's wise to plan living expense adjustments before returning.
- Maintain leave-level living expenses for 3 months before return to prepare for adjustment
- Expect your first 3 months' salary to cover only insurance premiums and basic living expenses
- Readjust budget for changes in childcare costs (parental leave → daycare/kindergarten)
- Organize prepaid subscription services used during leave
- Plan when to resume long-term savings (6 months after return is appropriate)
By carefully recording family living expenses during leave, you can identify unnecessary spending and streamline your lifestyle after returning. For example, if delivery food and convenience store visits decreased during remote work periods, it's worth making conscious efforts to maintain this pattern after returning to the office.
This article provides information analyzed and organized by AI from various sources. For more accurate details, please confirm with relevant organizations or professionals.
