A Study on Reorganization of Maternity and Parental Leave Systems

Abstract

This study examines a plan for reorganizing the maternity and parental leave systems, with a focus on expanding the target and securing the financial resources. Target expansion was the area that requires improvement most. This means that it is more important to focus on horizontal expansion, such as expanding the targets, than on vertical expansion, such as increasing the benefit levels. This is because people in secured jobs are more likely to collect full social security benefits, while those in precarious jobs are more likely to be excluded from social safety nets. Accordingly, the government is promoting the National Employment Insurance System to expand the number of people eligible for the system. In this study, an expert survey was conducted on two proposals: 1) reorganizing the maternity and parental leave systems based on the National Employment Insurance System, and 2) a reform based on a new funding structure. In light of the survey findings, a universal benefit system based on a new financial structure was recommended in the long run, while a short-term plan was suggested to expand the coverage of the National Employment Insurance.. The short-term improvement plan expanding the system on the basis of employment insurance, cannot provide universal benefits. This is because, due to the nature of the social insurance, it is not appropriate to give benefits to those who have not contributed and to utilize the corresponding financial resources. If the National Health Insurance Fund is used as the source of funding for the maternity and parental leave systems, it is anticipated that the level of burden on each citizen would not be demanding because almost all citizens bear the cost for not many beneficiaries because of the low birth rate. If maternity and parental leave benefits are created as a universal benefit scheme funded by the National Health Insurance, income-proportional benefits can be paid for those with income over a certain level, as is currently the case, while fixed amounts can be paid as benefits otherwise. However, in this case, since the parents benefit is currently being paid to all parents, it is necessary to set the level of fixed-amount benefits in consideration of the parents benefit system. This study is significant in that it examined the possibility of expanding maternity and parental leave benefits to a universal system. In particular, although strict assumptions were not applied, it is highly meaningful to estimate the amount of financial resources required for future policy expansion by estimating the amount of finance for expansion of the target. The results of this study are expected to provide the basic data necessary for future discussions on system expansion.