If You Earn Over 5.9 Million Won Monthly, You Must Pay an Additional 33,000 Won for National Pension Starting July

Ministry of Health and Welfare's 2nd National Pension Deliberation Committee on the 3rd
Standard Monthly Income Ceiling Raised from 5.53 Million to 5.9 Million, Floor from 350,000 to 370,000

This year, National Pension premiums will increase by 1,800 to 33,300 KRW per month. The highest premium will surpass 500,000 KRW.

On the 3rd, the Ministry of Health and Welfare held the "2nd National Pension Deliberation Committee" and announced that the standard monthly income amount, which serves as the basis for calculating National Pension premiums, will be raised starting from July. The upper limit will increase by 370,000 KRW from 5.53 million KRW to 5.9 million KRW, and the lower limit will rise by 20,000 KRW from 350,000 KRW to 370,000 KRW. This reflects the 6.7% change rate in the average income of all subscribers over the past three years, according to Article 5 of the Enforcement Decree of the National Pension Act. This indicator has shown an increasing trend, rising from 3.5% in 2020 to 4.1% in 2021, and 5.6% last year.

Accordingly, National Pension premiums will increase from the current maximum of 497,700 KRW to 531,000 KRW, and from the minimum of 31,500 KRW to 33,300 KRW. However, for workers whose income has changed significantly compared to the previous year, the "Standard Monthly Income Special Case System" will be extended for three years to allow them to pay premiums based on their current income. The proposed increase will be implemented after deliberation by the National Pension Deliberation Committee and revision of the official notice.

Lee Ki-il, First Vice Minister of the Ministry of Health and Welfare, stated, "Based on the financial forecast to be finalized in March, we will establish the 5th Comprehensive Operation Plan through discussions on the development of the National Pension system and fund management, and submit it to the National Assembly in October." He added, "Since the entire nation is closely watching pension reform, we will strive to prepare a reasonable pension reform plan that can be accepted by everyone from the youth to the elderly."