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Management Consulting
2026-06-237 min read1

4.5-Day Workweek Adoption Guide: Government Support and Practical Strategy for SMEs (2026)

A guide to government support amounts and practical adoption strategies for SMEs implementing the 4.5-day workweek.

KITIM Consulting Team

What is the 4.5-Day Workweek?

The 4.5-day workweek combines four full days (32 hours) with one half-day (4 hours), totaling 36 hours per week. Pilot programs began in March 2025 in regions like Gyeonggi Province, and the Ministry of Employment and Labor is providing time-limited subsidies through 2027 via its "Work-Life Balance+4.5 Project."

Government Support Amounts

Incentive Subsidy

  • Adopting companies: KRW 200,000-250,000 per employee monthly
  • New hires to fill resulting gaps: additional KRW 600,000-800,000 per hire monthly
  • Wage Compensation Support

  • First 10 hours reduced: 100% of pre-reduction ordinary wage (2026 cap: KRW 2.5 million, floor: KRW 500,000)
  • Remaining reduced hours: 80% of pre-reduction ordinary wage (cap: KRW 1.5 million, floor: KRW 500,000)
  • Why SMEs Are Considering Adoption

  • Easing labor shortages: Reduced hours improve recruitment competitiveness, especially for younger workers
  • Maintaining productivity: Output must be sustained despite fewer hours, requiring process redesign
  • Time-limited support: Since subsidies run only through 2027, the support amount available depends on adoption timing
  • Practical Adoption Strategy

    1. Start with a Pilot Department

    Run pilots in office functions or lower-impact departments before company-wide rollout.

    2. Redesign Processes Alongside Hour Reduction

    Simply cutting hours without process changes leads to lower productivity. Pair the transition with automation and digital tools to complete the same work in less time.

    3. Pre-Calculate Wage Compensation

    Calculate compensable amounts based on each employee's ordinary wage to forecast labor cost changes.

    4. Link to New Hire Subsidies

    Filling work gaps from reduced hours with new hires also qualifies for additional hiring subsidies.

    How to Apply

    Apply through the Ministry of Employment and Labor's "Work-Life Balance+4.5 Project" or your local employment center, which requires submitting an adoption plan and amending work rules.

    Contact KITIM

    KITIM supports SMEs with 4.5-day workweek adoption strategy, government subsidy applications, and process redesign. Contact us through [KITIM Contact](/contact) for a consultation.

    4.5-Day WorkweekWork-Life BalanceGovernment SupportReduced Working HoursSME HR
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