Starting next year, the upper limit for parental leave benefits in South Korea will increase to 2.5 million won ($1,740) per month, up 1 million won from the current cap, the Ministry of Employment and Labor announced Tuesday.

The changes, approved at a Cabinet meeting, will take effect Jan. 1, 2025. Workers will also be able to apply simultaneously for parental leave, used by those raising young children, and maternity leave, used by the parents of newborns. If employers do not approve parental leave within two weeks of receiving an application, employees will be allowed to take leave as requested.

The monthly parental leave benefit cap will rise from 1.5 million won to 2.5 million won. Under the revised policy, parents taking 12 months of parental leave will receive a total of 23.1 million won, an increase of 5.1 million won from the current benefit.

For couples who utilize the joint parental leave system, the cap for the first month will rise by 500,000 won to 2.5 million won. Single parents taking parental leave will see a similar increase, with the cap for the first three months reaching 3 million won.

The current system, which withholds a quarter of the benefits to be paid upon return to work, will be scrapped next year, allowing parents to receive the full benefit during their leave period.

To further support families, workers will also be able to apply for parental leave simultaneously when requesting maternity or paternity leave. Employers must approve parental leave applications in writing within 14 days. If no response is given, the leave will be automatically approved.

The current law does not explain the specific procedures but only states that the company has to allow parental leave, raising questions about the system's implementation.

The government is also introducing additional support measures for businesses. Small and medium-sized enterprises will be eligible for up to 1.2 million won per month to hire replacement workers during an employee’s parental leave.

Employers compensating co-workers who handle the workloads of parental leave recipients will receive 200,000 won per month from the newly established support fund.