Philippine caregiver program faces uncertain future amid gov’t doubts

Filipino caregivers arrive at Incheon International Airport, Aug. 6, 2024, as part of a pilot project aiming to supply foreign workers to domestic households. Joint Press Corps

The future of the Philippine caregiver program in Korea, designed to supply foreign care workers to local households in response to the country’s declining birthrate, has been cast into doubt as the country's labor ministry raised financial concerns about its planned expansion just weeks before its scheduled full-scale launch.

Acting Employment and Labor Minister Kim Min-seok said that expanding the caregiver program into a full-scale initiative next month appears unlikely, citing unresolved funding issues.

Launched in September last year, the program began with a six-month pilot phase, jointly operated by the Ministry of Employment and Labor and the Seoul Metropolitan Government, that brought 100 certified caregivers from the Philippines to work in households across Seoul. The Korean government had initially planned to bring in an additional 1,200 foreign workers in the first half of this year to roll out the program nationwide.

Kim explained that the government launched the pilot project with the expectation that increasing the supply of caregivers would lower service costs and make care more accessible to households. However, the plan appears to be falling short; households using the service this year are paying 3,000 won ($2.14) more per hour than they did last year. For families receiving 40 hours of service per week, that adds up to an extra 510,000 won per month.

The rising cost has fueled an ongoing controversy, as the program was originally intended to provide affordable child care support and alleviate the financial pressure on parents amid the country's rapidly declining birthrate.

Kim Min-seok, acting minister of employment and labor / Courtesy of Ministry of Employment and Labor

Furthermore, the labor ministry reaffirmed its position that the caregiver program must comply with the Labor Standards Act and the International Labour Organization (ILO) Convention, which prohibits discrimination based on race, national origin and other factors. But the ministry noted that the adherence to these standards also limits the government's ability to lower the cost of employing foreign caregivers.

Despite such constraints, Kim highlighted the ongoing need for the Filipino caregiver program, stating that Korea’s labor market is unlikely to adapt quickly enough to ease the burden on parents raising children. With limited alternatives available, he mentioned that foreign caregivers remain one of the few viable options for child care support.

Oversight and accountability also remain key concerns in the management of the caregiver program.

Just two weeks after the program's launch, two caregivers fled to another city and switched jobs illegally. In April this year, authorities revealed that another caregiver had violated labor regulations by taking on unauthorized additional work in an effort to earn more income.

Under Korea’s Employment Permit System, foreign caregivers are assigned to a single workplace and are prohibited from working elsewhere. However, because their workplace is a private home rather than a formal business, enforcing these restrictions has proven difficult.

In response to the government's wavering stance, the two private companies that have been operating the caregiver service since the end of the six-month pilot program issued a joint statement on Thursday, expressing frustration over the program’s uncertain future.

"As startups that have implemented the government’s policy faithfully despite incurring financial losses, we find the current situation deeply disappointing," the companies said.

Seol Dong-hoon, a sociology professor at Jeonbuk National University, emphasized the need to revise the current structure of the caregiver program.

"From the workers’ perspective, many want to take on extra hours to maximize their income. Rather than focusing solely on lowering service costs, the system should be adjusted to allow them to work for multiple households," he said.

"With a presidential election coming up in June and the possibility of a change in administration, it also appears the ministry may be delaying key decisions."