SEOUL - Faced with a persistently sluggish fertility rate, South Korean companies are taking unprecedented measures to offer high cash incentives to encourage employees to have children. This initiative is being carried out against the backdrop of South Korea's efforts to increase the birth rate.
According to the "Seoul News", South Korea's Shuangling Group recently announced that for employees with more than 5 years of service, from January 1 this year, the first child will be rewarded with 30 million won, the second child will also be rewarded with 30 million won, and the third child will be rewarded with up to 40 million won. In addition, the company has committed to paying for in vitro fertilization for couples with fertility disorders.
Not far behind, Lotte Group plans to provide free van rental for two years to employees who have given birth to their third child from this year. After 2021, Fu Rong Group gave 100 million won to each of its 70 employees who gave birth to children, a move that has attracted widespread attention in South Korea.
South Korea is also incentivizing companies to provide maternity incentives for employees through tax incentives and other policies. According to the Ministry of Planning and Finance, it is considering tax breaks for employees who receive maternity incentives.
Still, it remains to be seen whether these measures will be effective in increasing fertility. The Straits Times pointed out that despite the efforts of ** and enterprises, the actual effect of monetary incentives remains to be seen. Some employees and experts believe that in addition to financial support, a sound parental leave policy and flexible work arrangements are needed to truly reduce the burden of childbirth on employees.
Relevant data show that in South Korea, there are only 23% of employees are able to benefit from the company's maternity incentive program. One HR expert said that while a company's maternity incentive program provides financial help, it may have a limited effect on the overall fertility rate, as these benefits only cover a small number of employees.
With South Korea's child population declining by more than 2 million over the past decade, it remains to be seen whether these efforts by companies and companies can reverse the trend of low fertility.