Up to 1 Year Exemption from National Pension Insurance Premiums for Residents in Flood-Affected Areas

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The Ministry of Health and Welfare announced on the 17th that it will implement exceptions for National Pension insurance premium payments and late fee collections for residents in flood-affected areas.

Residents whose flood damage is recognized do not have to pay pension insurance premiums for up to one year. The payment exception applies to premiums imposed from this month until July next year.

However, the subscription period for the National Pension will be reduced by the length of the payment exception period, which may result in a lower pension amount in old age.

If income is generated later, the unpaid premiums during the deferred payment period can be paid all at once, but in this case, the individual must bear the full amount.

Since employees usually pay half of the insurance premium and the company pays the other half, employees should be cautious when applying for the payment exception.

In addition, flood-affected residents will not be charged late fees even if they fail to pay six months' worth of premiums on time until the end of this year. Late fees refer to an additional amount of up to 5% of the premium imposed when the premium is not paid by the due date.

Those wishing to apply for the payment exception can apply by phone through the National Pension Service call center (1355) or branch office without any application documents. Businesses and residents in special disaster areas are automatically exempt from late fee collection without a separate application if premiums are unpaid.

This content was produced with the assistance of AI translation services.