Having a Child and Serving in the Military Increases Your National Pension Benefits

The 5th Comprehensive National Pension Operation Plan
Credit Applied from the 'First' Child... Monthly Pension Amount Increased by 30,400 Won

From now on, subscribers who give birth to children or serve in the military will be able to receive more National Pension benefits.

On the 27th, the government deliberated and approved the 5th Comprehensive National Pension Operation Plan (draft) at the 3rd National Pension Deliberation Committee meeting of 2023, which includes these details. The credit system is a scheme that additionally recognizes the subscription period of the National Pension as a way to reward socially valuable actions. When the subscription period increases, the pension amount received also increases.

Currently, childbirth credits are recognized from the second child onward. The subscription period for the National Pension is calculated as 12 months for the second child and 18 months from the third child onward, recognized up to a maximum of 50 months. The government has decided to expand support by recognizing 12 months of subscription period starting from the first child. Also, credits will be recognized at the time of childbirth going forward. Until now, childbirth credits were recognized from the pension receipt point, but there were criticisms that the effect was not strongly felt.

Minister of Health and Welfare Cho Kyu-hong is announcing the implementation plan for regional and essential medical innovation at the Government Seoul Office in Jongno-gu, Seoul, on the 26th. Photo by Jo Yong-jun jun21@

The Ministry of Health and Welfare explained that if childbirth credits are expanded, the monthly pension amount per child is expected to increase by about 30,400 KRW. This is an estimated figure calculated by applying the A value (2.86 million KRW) applied in 2023. The government subsidy ratio will also be expanded. A Ministry of Health and Welfare official said at a pre-briefing, "We intend to significantly increase the current 30% government subsidy ratio," adding, "We plan to design it so that the government subsidy is much higher than now."

Support for credits related to military service will also be expanded. The military credit, which is currently operated with 100% government funding, only recognized 6 months during the service period, but this will be extended to the entire service period. The timing of credit recognition will also be moved forward from the pension receipt point to the time when military service ends. Minister of Health and Welfare Cho Kyu-hong stated, "We will strengthen rewards for socially valuable activities such as childbirth and military service for the younger generation."

Support for insurance premiums for low-income groups will also be increased. The target for insurance premium support for regional subscribers will be expanded from those who resumed payment to low-income regional subscribers, and the support period will be extended from the current 12 months. This is interpreted as a response to criticisms that the insurance premium support system for low-income regional subscribers was limited. Although low-income regional subscribers can now receive insurance premium support, it was only possible when they resumed National Pension payments after stopping. Even then, there had to be reasons such as business suspension, unemployment, or leave of absence. The support level was also lower than that for workers, covering only 50% of the insurance premium for one year.