Youth Tomorrow Filling Deduction application method, application conditions, maturity payment, early termination
From March 2th, the application for the 2023 Youth Tomorrow Filling Gongje has begun. This year, as the government subsidy and subscription targets are reduced, the number of applications is expected to decrease significantly compared to previous years.
What is Youth Tomorrow Filling Deduction?
Youth Tomorrow Filling Deduction – By subject – Contribution
Source: 2023 Youth Tomorrow Filling Deduction Implementation Guidelines
Introduced for the first time in 2016, the Youth Tomorrow Filling Deduction Project supports the asset formation of young workers by accumulating a certain amount of funds jointly with youth, companies, and the government. Young workers who joined SMEs can make a lot of money while forming their initial careers for more than two years, and companies can secure young talent more stably. In the case of this year (2023), youth, companies, and the government jointly accumulate 4 million won each for 2 years, and at the end of 2 years, a total of 12 million won will be paid to the youth.
Youth Tomorrow Filling Deduction application procedure and method
※ SMEs and key personnel must jointly apply for subscription within 6 months from the date of hiring a full-time employee.
(Even if it is within 6 months, you must complete the application for deduction by ‘23.12.31.)
① Worknet participation application – (online)
– Both companies and young people apply (businesses apply first, then young people apply)
WorkNet-Participation Application-Button-Image
Worknet participation application
② Qualification screening at the job center (after the screening, the job center notifies you of approval)
– You can apply for medium-sized jobs after approval from the job center
③ Small and Medium Venture Business Promotion Corporation (Small and Medium Business Corporation) Subscription Application – (Online)
– Apply for both companies and youth (the final application is completed only when the worker completes the application)
Medium vacuum-subscription application-button-image
Subscription application for medium vacuum
④ Accumulation of mutual aid installments (deposits of mutual aid installments are processed through automatic transfer)
– Youth -> 4 million won in total (160,000 won per month for the first 20 months, 200,000 won per month for the following 4 months)
– Enterprise -> Total KRW 4 million (KRW 160,000 per month for the first 20 months, KRW 200,000 per month for the following 4 months)
– Government -> Total 4 million won (Government subsidy is deposited 5 times every 6 months – 600,000 won for the 1st round, 700,000 won for the 2nd and 3rd rounds, and 1 million won for the 4th and 5th rounds)
– Total maturity: KRW 12 million + interest
⑤ Receipt of maturity deduction
– After working for the deduction subscription period (24 months) from the date of contract establishment, if “youth (key personnel) self-pay, corporate contribution, and government subsidy” are all accumulated, the young man himself can apply for maturity payment
Conditions for applying for Youth Tomorrow Filling Deduction
In order to apply for the Youth Tomorrow Filling Deduction, you must confirm that the conditions of the applicant and the company he or she are working for fall under the following conditions.
■ youth
▷ age
– Between 15 and 34 years of age
* For those with military experience, the age limit for participation is linked in proportion to the period of service (limited to the maximum age of 39)
▷ salary
– Total monthly salary is less than 3 million won
▷ Employment insurance history
– Those who have no history of employment insurance as of the date of full-time employment or whose total period of employment insurance was less than 12 months after graduating from the last school
* However, short-term subscription history of less than 3 months is excluded from the total subscription period
** Excluding broadcasting/communication/broadcasting/communication/cyber (remote university), credit bank system, night college, and graduate school
▷ Education
– There are no restrictions, but those who are currently attending high school or university or on leave of absence as of the day of regular employment are excluded (possible for those who are expected to graduate)
■ Company
▷ Employment scale and industry
– Small and medium-sized businesses in the construction and manufacturing industries that employ between 5 and less than 50* average employment insurance insured persons for the previous 3 months, as of the date of full-time employment of young people eligible for deduction
* It is judged by business owner, but when calculating the number of insured persons, business owners, daily workers, workers in special forms of employment, labor providers, and artists are excluded.
* According to Article 2 of the 「Framework Act on Small and Medium Business」 and Article 3 of the Enforcement Decree of the same Act, the type of business must be confirmed as the type of business owner (headquarters) under the employment insurance system.
Application for payment of the Youth Tomorrow Cheum Deduction
▷Payment target: Young people (key personnel) who have served for a long time after the contract is concluded and for more than the mutual aid subscription period (24 months)
▷Payment requirements: If “youth (core personnel) self-pay, corporate contribution, and government subsidy” are all accumulated after working for the deduction subscription period (24 months) from the date of conclusion of the contract
▷How to apply: Apply on the Naeil Fill Deduction website (www.sbcplan.or.kr) after all contributions and support funds have been accumulated.
▷Maturity interest: paid by calculating annual compound interest at the *interest rate applied during the period of ‘deduction contract establishment date – maturity date’
* Check the interest rate -> Disclosure on the Tomorrow Filling Deduction website
Youth Naeilcheum Mutual Aid Early termination and linked subscription
■ Early termination
▷Definition: An expression of intention to terminate a contract for the future due to a certain reason in relation to a contract that has been validly concluded.
▷If you do not meet the qualifications for subscription due to changes in working conditions, company type, etc. after signing up for mutual aid (contract), apply for early termination
▷How to apply: Access the Tomorrow Filling Deduction website -> My page -> Product contract management -> Contract cancellation/midterm cancellation
(Preparation before application – public certificate, documents proving the reason for resignation, unpaid amount check)
※ Subject to payment
▷ Reasons for business: Youth contributions and corporate contributions (corporate contributions before 2023) are paid to young people, and government subsidies are paid to young people by 50-100% of the reserve amount depending on the subscription period
▷Reason for youth: Paid by subject to accumulate contributions (company → business, youth → youth), government subsidy is paid 0-50% of the reserve according to the subscription period
■ Linked subscription
If you want to receive additional subsidy benefits after the maturity of Youth Tomorrow’s Filling Deduction, you can re-subscribe or extend your membership as a ‘Tomorrow Filling Deduction’ product for incumbents. You can choose between 3-year, 4-year, and 5-year maturity products for each period when you sign up for the Naeil Filling Deduction. It is not possible to re-register for the Youth Tomorrow Filling Deduction product.