The work incentive is a policy that provides cash support to low-income workers and business owners who work but face financial difficulties. While many people are having a hard time due to the ever-rising cost of living, in this post, we will take a closer look at the 2024 work incentive conditions, application, payment amount, and FAQs that many people are curious about.
2024 Work Incentives
Conditions for work incentives in 2024
Conditions for receiving work incentives vary depending on the income and assets of each household. Household types are divided into single-income households, single-income households, and double-income households.
Single-family household: Household living alone without a spouse or dependents
Single-income household: Household with a spouse (gross salary less than 3 million won) or dependents (annual income less than 1 million won)
Dual-income households: Households where the total salary of the person and spouse is more than 3 million won each
The income standard for each household for the earned income tax credit is that the combined annual income of a married couple in 2023 must be less than the total income standard amount below.
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Single-family household: less than 22 million won
Single-income households: less than 32 million won
Dual-income households: less than 38 million won
In addition to the criteria by income, the asset criteria is that the total assets owned by household members, including income, land, buildings, and savings, must be less than 200 million won, but debt is not deducted when calculating the total assets.
Apply for 2024 work incentives
1. Application period
Business income earners and religious people can only apply for the earned income subsidy on a regular basis in May, and wage and salary earners can choose between regular application (May) and semi-annual application (March and September). Among the half-year applications, applications for income for the first half of 2023 were paid in December 2023, and half-year applications for 2024 are for income from the second half of 2023.
Classification Regular application Semi-annual application Semi-annual application
Application period: May 1 – 31, 2024 March 1 – 15, 2024 September 1 – 15, 2024
Income standard Total income in 2023 Income in the second half of 2023 Income in the first half of 2024
Payment period: Late August – September 2024, paid in June 2024, December 2024
※ Apply after the deadline
Did you miss the May regular application? It’s not too late. You can apply after the deadline from June to the end of November and receive 90% of the total payment amount. Payment will be made 3 months after application.
2. How to apply
To apply for a work incentive, you can easily apply by receiving an application guide and entering your individual authentication number on the Hometax website or by phone as explained in the guide.
Also, even if you did not receive the application notice, if you meet the eligibility conditions, you can apply by verifying your identity on the website.
How to apply for 2024 work incentives
How to apply for 2024 work incentives (Source: National Tax Service)
※ How to apply by phone for ARS (1544 – 9944)
Make a call, select the incentive, enter your resident registration number and individual authentication number, agree and apply. After applying, follow the instructions and confirm your contact information and account number to complete the application.
Apply for National Tax Service work incentive
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Work incentive payment amount in 2024
Work incentives are calculated based on income and assets for each household type, and 50% of the income requirements are paid if the total assets are between KRW 170 million and less than KRW 240 million.
Single household: Up to KRW 1.65 million (income less than KRW 22 million)
Single-income households: Up to KRW 2.85 million (income less than KRW 32 million)
Dual-income households: Up to KRW 3.3 million (income less than KRW 38 million)
Compilation of Earned Income Tax Incentive FAQs
1. Can part-time workers also be accepted?
Even if you are a part-time worker, you can apply for an employment incentive if you received salary in the previous year and meet the above conditions.
2. In what cases is employment incentive payment denied?
Payment will not be made if you do not meet the above eligibility requirements, provided false information, or missed the application period.
3. How is payment made when applying semi-annually?
For the first half of the year, 35% of the amount calculated in December is paid, and the remaining amount for the second half is paid in June of the following year.
4. Do you have any national tax arrears?
If there is a tax arrears, up to 30% of the payment amount will be covered by the arrears.
5. Is child support also paid?
If you apply semi-annually, only the work incentive will be paid in December, and it will also be paid in June of the following year.
6. Can other people apply?
If you are having difficulty applying on your own, you can call the Incentive Counseling Center (1566 – 3636) and, with the consent of the recipient, have a counselor at the Incentive Counseling Center or a tax office employee apply on your behalf.
In this post, we looked into the 2024 work incentive conditions, application, payment amount, and questions that many people are curious about. After applying for a work incentive and before receiving a decision notice from the National Tax Service, you can check the screening status in advance by selecting “Check screening progress status” on the Hometax website to check the work incentive payment schedule.