If your company is considering a 4.5-day week, shorter Fridays, focused work hours, or reducing overtime, there is a government support program to check first. It is usually introduced as the **Work-Life Balance Job Incentive**.
However, the government is not supporting “a 4.5-day week for every company” in a blanket way. The core structure is that employers may receive incentives when the company actually reduces working hours or allows contractual working-hour reductions for worker-specific reasons while meeting requirements.
> Baseline date: This article is based on public guidance from Work24 and Easy Law as of June 16, 2026. Requirements and forms can change by budget, notice, and annual guidelines, so confirm again with Work24 and the competent employment center before applying.
## Key summary at a glance
| Category | Actual working-hour reduction type | Contractual working-hour reduction type |
|—|—|—|
| Purpose | Improve company-wide long-hours practices | Support individual workers for caregiving, health, study, pregnancy, childcare, and similar reasons |
| Company action | Establish a reduction plan and reduce average actual working hours | Allow a worker to reduce contractual working hours for a set period |
| Main benefit | 300,000 won per supported person per month | Up to 500,000 won per reduced-hours worker per month |
| Support period | Up to one year, applied for every three months | Up to one year, applied for every three months |
| Core requirement | Weekly average actual working hours reduced by at least two hours compared with the previous three months | Meets requirements such as working at least 35 hours per week for six months before reduction |
| Main target | Priority-support companies and mid-sized companies | Priority-support companies and mid-sized companies |
| Application route | Work24 or competent employment center | Work24 or competent employment center |
## Why did the 4.5-day week become a government-support issue?
For companies, working-hour reduction is not just a welfare policy. Reducing working time changes staffing, wage design, customer-response hours, productivity management, and attendance systems together.
The purpose of the support program is to ease part of this transition cost. It encourages companies to reduce long working hours, improve work-life balance, and help workers avoid quitting because of caregiving, health, study, or childcare.
The direction can be summarized in three points:
– Improve long-hours practices by reducing overtime-dependent operations.
– Strengthen work-life balance so workers do not leave because of caregiving, health, childcare, or study.
– Ease corporate transition costs related to attendance management, wage preservation, and program operation.
## Two support types companies must know
### 1. Actual working-hour reduction: reducing company-wide working hours
This type supports companies with much overtime as they improve a long-hours culture. A company prepares a working-hour reduction plan and can receive incentives when it reduces actual working hours, including contractual and overtime hours.
Official guidance says the average weekly actual working hours per worker must decrease by at least two hours compared with the three months before implementation. Reductions created only by expanding break time are excluded.
The company benefit is a flat 300,000 won per supported person per month. The number supported is calculated based on 30% of eligible workers, up to 100 people. If the workplace has fewer than ten eligible workers, up to three may be supported.
### 2. Contractual working-hour reduction: supporting individual worker reasons
This type applies when a worker wants to reduce working hours for a set period because of family caregiving, personal health, retirement preparation, study, pregnancy, childcare, or similar reasons, and the employer allows it.
For general reasons, a typical case is reducing weekly contractual working hours to 15–30 hours for a worker who has worked at least 35 hours per week for six months before reduction. Separate requirements apply to 10 a.m. start programs during childcare or reductions for pregnancy.
The company benefit is up to 500,000 won per reduced-hours worker per month: 300,000 won incentive plus 200,000 won wage-reduction compensation. The wage-compensation portion is supported only when the employer pays a certain level of compensation to the worker, and it does not apply to the childcare 10 a.m. start program.
## Benefits by amount
| Type | Support the company can receive | Limit | Period |
|—|—|—|—|
| Actual working-hour reduction | 300,000 won per supported person per month | 30% of eligible workers, max 100; workplaces under 10 workers may support 3 | Up to 1 year |
| Contractual working-hour reduction | Up to 500,000 won per reduced worker per month | 30% of insured workers at prior year-end, max 30; workplaces under 10 workers may support 3 | Up to 1 year |
| Incentive inside contractual reduction | 300,000 won per month | Based on eligible workers | Up to 1 year |
| Wage-reduction compensation | 200,000 won per month | When the employer compensates wage reduction at the required level | Up to 1 year |
The contractual reduction type may look larger in amount, but the purposes differ. If the company is moving toward a company-wide 4.5-day week or reducing overtime, the actual working-hour reduction type is closer. If the issue is an individual worker’s caregiving, health, or childcare, the contractual reduction type should be examined.
## How should a company design a 4.5-day week?
A 4.5-day week designed only as “Friday afternoon off” may not match support requirements. To connect with government support, design the purpose, target, attendance-management method, and wage-processing rules together.
### First, decide whether it is company-wide or individual
If all employees reduce Friday work and overtime decreases, it is closer to actual working-hour reduction. If working hours are reduced for specific workers because of childcare, health, or study, it is closer to contractual working-hour reduction.
### Second, actual working-hour reduction must be visible
The actual working-hour type compares the three months before and after implementation on a company-average basis. A nominal program will not be enough if overtime continues. Attendance data is crucial; clock-in and clock-out must be verifiable through electronic or mechanical methods such as cards, biometrics, or time recorders.
### Third, revise work rules, HR regulations, and employment contracts
The contractual reduction type needs rules covering return to full-time work, reasons for reduction, reduction period, and working conditions. Contracts before and after reduction, monthly payroll ledgers, wage-payment evidence, and attendance records are needed.
The actual working-hour type also needs a business plan with implementation date, target reduction hours, and method. Labor-management council minutes and revisions to work rules or HR regulations may serve as evidence.
### Fourth, overtime management is central
For contractual reduction, incentives may not be paid for a month if overtime exceeds ten hours. For pregnancy-related reductions, support may be restricted if the worker works beyond the reduced hours.
For actual working-hour reduction, violations of the Labor Standards Act, including overtime violations, can lead to non-payment or return of incentives already received.
## Application procedure
| Step | Actual working-hour reduction | Contractual working-hour reduction |
|—|—|—|
| 1 | Establish a reduction plan | Introduce the program and prepare internal rules |
| 2 | Submit participation application and plan to the competent employment center | Implement reduced work according to worker application |
| 3 | Implement within the set period after review approval | Prepare contracts, attendance, and wage materials before and after reduction |
| 4 | Apply for incentives every three months after implementation | Apply every three months from the month after reduction begins |
| 5 | Receive deposit after payment approval | Receive deposit after payment approval |
Applications can be made online through Work24. If offline application is needed, check with the employment center for the workplace location.
## Documents companies should prepare
For the actual working-hour reduction type, working-hour data for the three months before reduction is especially important. Since participation already requires electronic or mechanical attendance records, check the attendance system first.
For the contractual reduction type, internal rules and worker-specific contract and wage data are important. Contracts before and after reduction, monthly payroll ledgers, wage-payment evidence, and electronic attendance records are basic materials.
| Preparation item | Why it is needed |
|—|—|
| Electronic or mechanical attendance records | To verify actual working-hour reduction |
| Work rules, HR rules, collective agreement | To verify program introduction and return guarantee |
| Working-hour reduction plan | To verify target hours, start date, and method |
| Contracts before and after reduction | To verify contractual-hour changes |
| Monthly payroll ledgers | To verify wage payment and overtime management |
| Wage-payment evidence | To verify wage-reduction compensation and related payments |
## Advantages and limits for companies
### Advantages
First, the program can reduce part of the burden during working-hour reduction. SMEs and mid-sized companies often delay adoption because of staffing gaps and operating costs; incentives lower the initial burden.
Second, it helps hiring and retention. Working-hour reduction is not only a welfare image but a real retention tool for workers with caregiving, health, or childcare needs.
Third, it can trigger a move toward productivity-centered operations. A 4.5-day week is not just reducing hours; it is a redesign of meetings, reporting, overtime, and priorities.
### Limits
First, not every company automatically receives support. Check priority-support or mid-sized company status, worker requirements, excluded industries, wage arrears, and publicized serious accidents.
Second, actual reduction and attendance data must be verified. Nominal programs or manual attendance management make requirements hard to meet.
Third, duplicate benefits for the same worker and same period may be restricted. If childcare working-hour reduction support or employment-maintenance support is already involved, check overlaps.
## Pre-application checklist
– ☐ Is our company a priority-support company or mid-sized company?
– ☐ Is the 4.5-day week company-wide actual-hour reduction or individual contractual-hour reduction?
– ☐ Can we secure baseline data for the previous three or six months?
– ☐ Do we have electronic or mechanical attendance records?
– ☐ Do work rules, HR regulations, or contracts need revision?
– ☐ Can overtime be managed below monthly restriction levels?
– ☐ Is there no duplicate-benefit risk for the same worker and period?
– ☐ Have we checked the latest forms and requirements on Work24 or with the employment center?
## FAQ
### If we introduce a 4.5-day week, do we automatically receive support?
No. Support is not paid simply because the program is called a 4.5-day week. What matters is whether actual working hours decreased, contractual reduction requirements were met, and attendance and wage records are verifiable.
### Can Friday afternoon off be submitted as actual working-hour reduction?
It can be reviewed. But average weekly actual working hours must decrease by at least two hours compared with the prior three months, and reductions only from longer breaks are excluded. Electronic or mechanical attendance data is also needed.
### What is the maximum amount a company can receive?
Actual working-hour reduction provides 300,000 won per supported person per month. Contractual working-hour reduction provides up to 500,000 won per reduced worker per month. But limits and worker requirements apply, so do not simply multiply by all employees.
### Is contractual reduction the same as childcare working-hour reduction support?
No. Work24 guidance separately refers to childcare working-hour reduction support for children aged eight or below or in second grade or below. Duplicate benefits for the same period may be limited.
### Where do we apply?
Online application is available through Work24. For program design or document decisions, check with the employment center for the workplace or the Ministry of Employment and Labor counseling center at 1350.
## Conclusion: a 4.5-day week requires operational design before welfare language
This support program is not “money for adding a day off.” The government looks at whether working hours truly decreased and whether the company responsibly operates a system that lets workers continue working.
Companies should first distinguish between actual working-hour reduction and contractual working-hour reduction. Then prepare attendance management, rule revisions, wage processing, and overtime control together.
If designed well, the incentive can become more than a subsidy: it can be a starting point for organizational-culture change. If requirements are treated lightly, non-payment or clawback risk can arise. Check Work24 and the competent employment center before applying.
## Related reading
– [Youth Leap Account and 2026 SME Worker Support](https://www.thinknote.co.kr/youth-leap-account-sme-worker-support/)
– [If Rate Cuts Arrive: Deposit, Bond, and Dividend Strategy](https://www.thinknote.co.kr/interest-rate-cut-asset-allocation-2026/)
– [ETF Investing Goes Mainstream](https://www.thinknote.co.kr/etf-mainstream-personal-investing-2026/)
## References
– [Work24, Work-Life Balance Job Incentive: actual working-hour reduction](https://www.work24.go.kr/cm/c/f/1100/selecSystInfo.do?systId=SI00000425&systClId=SC00000368)
– [Work24, Work-Life Balance Job Incentive: contractual working-hour reduction](https://www.work24.go.kr/cm/c/f/1100/selecSystInfo.do?systId=SI00000330&systClId=SC00000307)
– [Easy Law, Work-Life Balance Job Incentive support](https://www.easylaw.go.kr/CSP/CnpClsMainBtr.laf?csmSeq=2855&ccfNo=3&cciNo=1&cnpClsNo=1)
[Original Korean article](https://www.thinknote.co.kr/work-life-balance-4-5-day-support/)