Minimizing Income Loss During Parental Leave: Complete Guide to Salary, Taxes, and Benefits for 2026

How Much Parental Leave Salary Can You Receive in 2026?

Parental leave salary is 80% of your regular wage. The maximum monthly support is 1,500,000 won, and a minimum of 450,000 won is guaranteed. For the first child, parental leave can be taken for up to 1 year (with an additional 3 months if the father uses it), and for the second child and beyond, up to 1 year per child is available. The salary is 80% for the first 3 months after starting leave, and may vary afterwards, so check with your workplace.

Starting in 2026, the upper limit of parental leave salary may be adjusted. The upper limit is adjusted annually according to the minimum wage increase rate, so check the latest amount on the Ministry of Employment and Labor website before applying. For dual-income couples, both spouses cannot use parental leave simultaneously, but if used sequentially, parental leave can be utilized for up to 2 years total.

Tax Deductions and Social Insurance Premium Payment During Parental Leave

Parental leave salary is classified as non-taxable income, so no income tax is imposed. However, if you have other business income or employment income, you must pay taxes on that income. During the leave period, you must still pay health insurance premiums, which are calculated based on your parental leave salary. Usually, the company automatically deducts this, so no special application is needed.

National Pension contributions are also important. There is a system where the state supports part or all of your national pension insurance premiums during parental leave. Based on 2026 standards, the employer's full contribution is supported for the first 3 months of leave, and may vary afterwards, so contact your workplace's HR department. Check if any portion is not deducted from your salary to prevent unexpected losses.

Parental Leave Benefits Dual-Income Couples Shouldn't Miss

If both spouses work, using parental leave sequentially allows you to secure up to 2 years of parental leave per child. For example, your spouse could take 6 months first, then you take 6 months. This way, both spouses can minimize career interruption while focusing on childcare.

What if one spouse in a dual-income couple is self-employed? Self-employed individuals cannot receive parental leave salary, but if your spouse is an employee, your spouse can receive childcare tax credits when using parental leave. Additionally, while running a business, you can continue receiving childcare support and other child welfare benefits, so plan your leave considering your household's overall income.

Process from Parental Leave Application to Salary Payment

To apply for parental leave, you must first submit an application to your workplace's HR department. Usually, you're required to apply 1 month before starting the leave, so prepare in advance. Required documents typically include a birth certificate (or family register copy) and an ID card copy, though this may vary by workplace.

Once the company receives your application, it is automatically reported to the Ministry of Employment and Labor. Parental leave salary can be claimed from the start date of the leave and is usually deposited to your account at the end or beginning of each month. Allow about 1 month for the first payment, so plan your budget accordingly. You can check payment status on the Ministry of Employment and Labor's 'Employment Insurance website'.

Important Things to Know When Returning from Parental Leave

When returning to work after parental leave, you have the legal right to return to your original position and duties. If you are demoted or have your salary reduced, this constitutes unfair treatment, and you can report it to your workplace's grievance committee or the Ministry of Employment and Labor.

Even after returning to work, you can apply for reduced work hours during parenting. If your child is 8 years old or younger, you can reduce your work hours within 5 hours per week, with your salary reduced accordingly for the shortened hours. Using this system allows you to balance work and childcare even after returning to the workplace. If you want reduced hours, apply to your workplace either before or after returning to work.

Additional Income and Tax Issues During Parental Leave

Can you earn additional income through online lectures or freelance work during parental leave? It's possible, but caution is needed. If you earn other business or employment income during parental leave, you must pay taxes on that income, and it may affect your health insurance premiums. Also, your workplace rules may prohibit this, so check first.

If additional income becomes 1 million won or more per month, it may affect health insurance premium calculations. You must report separately to the National Health Insurance Service, and your premiums may be higher than those based on your original parental leave salary. Therefore, it's advisable to consult with a tax accountant or your company's HR department in advance, even for modest additional income.

This article is information provided through AI analysis and organization of various sources. Please verify more accurate details with relevant organizations or experts.