Reason for the Proposal and Main Contents

The current Act requires employers with 100 or more employees to pay contributory charges to the Minister of Employment and Labor if they employ fewer disabled persons than the mandatory rates for employment of persons with disabilities. The base amount of contributory charges for calculating the contributory charges is determined and notified by the Minister of Employment and Labor to within 60% or more of the minimum wage amount converted on a monthly basis in accordance with the Minimum Wage Act.

However, many companies opt to pay the contributory charges rather than recruiting one disabled person because the base amount of contributory charges is less than the amount that would be required to hire a disabled person. As such, there is a widespread contention that the base amount of contributory charges should be raised because it is difficult to achieve the legislative purpose of promoting the employment of disabled persons. On the other hand, when employers hire more disabled persons than the obligation, they are paid a monetary employment incentive. There is a widespread contention that the use of incentive money should be limited to improving the treatment of disabled people.

In response to such contentions, it seeks to raise the range of the base amount of contributory charges to 80% or more of the minimum wage amount converted on a monthly basis in accordance with the Minimum Wage Act. It also provides that employment incentive money will be limited to certain purposes, such as that of improving the treatment of disabled people (Articles 30 (5) and 31 (1) 2 newly established, and Article 33 (3) of the Draft).