National Pension Insurance Premium Ceiling to Rise in South Korea

Starting in July, South Korea will adjust the upper limit for National Pension Insurance premiums, increasing the maximum monthly contribution for high-income earners. The ceiling for the standard income amount used to calculate premiums will rise from 6.37 million won to 6.59 million won.

This adjustment means individuals paying the maximum premium rate will see their monthly contributions increase by up to 10,450 won. Those earning 6.17 million won or more per month will experience this rise, while the premium for those earning 390,000 won or less will increase by 1,800 won. For employees, the increased cost will be split with their employers, meaning employees will pay an additional 10,450 won per month.

In addition to the premium adjustments, recipients of the National Pension and Basic Pension will see their benefit amounts increase by 3.6% this year. For single-person households receiving the Basic Pension, the monthly payment will rise to 334,810 won, and for couples, it will increase to 535,680 won.

The National Pension Service (NPS) has updated its standard income amount upper and lower limits for 2024. The lower limit for the standard income amount will also be adjusted, increasing from 400,000 won to 410,000 won. Most subscribers, falling between these upper and lower limits, will not experience any change in their monthly premiums due to this adjustment.