National Pension Service Extends 'Pension Insurance Premium Burden Relief' Until September

Temporary Insurance Premium Payment Exemption Application Available

[Asia Economy Reporter Seo So-jeong] The National Pension Service (Chairman Kim Yong-jin) announced on the 23rd that it will extend the 'Pension Insurance Premium Burden Relief Measure,' which was applied from January to June, for an additional three months until September due to the prolonged COVID-19 pandemic.

Accordingly, subscribers whose income has decreased due to COVID-19 can temporarily apply for exemption from premium payments, and even if premiums are unpaid, they can be exempted from late fees without a separate application.

The exemption period applies for up to four months, from June to September of this year, and the application deadline is the 15th of the month following the relevant month.

Those who have already applied for pension insurance premium exemption this year must apply again to extend it until September.

For workplace subscribers, exemption is recognized upon the employer's application if income has decreased and the employee agrees, while for regional subscribers, exemption is recognized upon the subscriber's own application if income has decreased.

If income has decreased but the subscriber wishes to pay a reduced premium without applying for exemption, they can pay a lower premium by changing the standard monthly income amount.

For workplace subscribers, changing the standard monthly income amount is possible if the actual income has changed by 20% or more compared to the standard monthly income amount.

However, the exemption period is not recognized as subscription period, which may reduce the pension amount received in old age. A National Pension official stated, "It is possible to apply for payment later for the exemption period, but since the subscriber must bear the full pension insurance premium, caution is advised when applying for exemption."

Applications for pension insurance premium exemption can be made by visiting a National Pension Service branch office, fax, or mail. For more details, inquiries can be made through the call center (without area code 1355, toll charge applies) and nationwide branch offices.

Kim Yong-jin, Chairman of the National Pension Service, said, "I hope this extension measure will be of some help to small business owners and self-employed people who have been affected by COVID-19."