National Pension Insurance Premium Increased by 18,000 Won per Month Starting July

Upper Limit of Standard Monthly Income Set at 6.37 Million Won, Lower Limit at 400,000 Won
Premiums for Monthly Income Above 6.37 Million Won to Increase by 18,000 Won

The standard income amount used to calculate National Pension premiums has changed, resulting in premiums increasing by up to 18,000 won starting this July.

Yonhap News

According to the Ministry of Health and Welfare and the National Pension Service on the 30th, the upper limit of the standard monthly income amount for this year has risen from 6.17 million won to 6.37 million won, and the lower limit has increased from 390,000 won to 400,000 won. These changes will be applied for one year from July this year to June next year.

The National Pension sets premiums based on the upper and lower limits of the standard income amount. For example, even if someone earns 6.4 million won per month this year, their premium is calculated assuming the monthly income is at the upper limit of 6.37 million won.

Similarly, for the lower limit, even if the monthly income is 380,000 won, the premium is calculated based on 400,000 won.

The government holds the National Pension Deliberation Committee annually and adjusts the upper and lower limits according to the average income change rate of all National Pension subscribers over the past three years.

The premium is calculated by multiplying the standard monthly income amount by the premium rate (9%). For subscribers earning 6.37 million won or more per month, the monthly premium increases from 555,300 won to 573,300 won, a rise of 18,000 won.

Employed subscribers share the premium cost equally with their company, so their monthly increase is 9,000 won, but regional subscribers must pay the entire premium themselves.

Due to the adjustment of the lower limit, premiums for subscribers earning less than 400,000 won per month will increase by up to 900 won, from 35,100 won to 36,000 won per month.

However, premiums for subscribers whose income falls between the previous upper limit (6.17 million won) and the new lower limit (400,000 won) will remain unchanged.