From July, National Pension Insurance Premiums Increase by up to 18,900 Won

The Upper Limit of Standard Monthly Income Raised to 5.24 Million Won and the Lower Limit to 330,000 Won

[Asia Economy Reporter Kim Ji-hee] National Pension premiums will increase by up to 18,900 KRW starting in July.

The Ministry of Health and Welfare announced on the 30th that from July 1, the upper limit of the standard monthly income amount, which is the basis for calculating National Pension premiums, will be raised to 5.24 million KRW. The current upper limit is 5.03 million KRW. The lower limit will also be changed to 330,000 KRW.

The adjustment of the standard monthly income amount, which serves as the basis for calculating National Pension premiums, reflects a 4.1% change 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.

With this adjustment, the maximum National Pension premium will increase by 18,900 KRW from the previous year to 471,600 KRW, and the minimum premium will increase by 900 KRW to 29,700 KRW. Although some subscribers will see an increase in premiums due to the adjustment of the upper and lower limits, the individual subscriber's lifetime average monthly income, which forms the basis for calculating pension benefits, will increase, allowing them to receive higher pension benefits upon retirement.

Lee Hyung-hoon, Director of the Pension Policy Bureau at the Ministry of Health and Welfare, stated, "In January this year, pension benefits for recipients were increased by reflecting a 0.5% inflation rate. In July, due to the adjustment of the upper and lower limits of the standard monthly income amount reflecting a 4.1% change in the three-year average income, some subscribers at the upper and lower limits will see an increase in premiums, but they will receive higher pension benefits upon reaching the pensionable age."

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