▲ A National Pension Service branch in Seoul
Starting July this year, the upper and lower limits of the monthly income standard used to calculate national pension premiums will be adjusted upward to reflect the rise in public income.
As a result, the national pension premiums that high-income subscribers must pay will increase starting next month, but the standard for the pension amount they will receive in retirement will also rise, which is expected to further strengthen long-term retirement income security.
Today (June 9), according to the Ministry of Health and Welfare, the adjustment plan for the upper and lower limits of the standard monthly income for the national pension has been finalized and will be applied for one year from July 2026 to June 2027.
This adjustment is the result of reflecting the average income fluctuation rate (3.4%) of all subscribers over the past three years.
Accordingly, the ceiling, which is the highest standard for imposing premiums, will increase from the current 6.37 million won to 6.59 million won.
The floor, which is the lowest standard, will be changed from the current 400,000 won to 410,000 won.
The national pension system calculates premiums only up to the ceiling, regardless of how high a subscriber's income is, and sets premiums based on the floor even if their income is very low.
With this adjustment, high-income subscribers with a monthly income exceeding 6.37 million won will be most directly affected.
Based on the increased premium rate of 9.5% applied since January this year, top-income earners who previously paid a monthly premium of 605,150 won under the old ceiling of 6.37 million won will have the new ceiling of 6.59 million won applied starting next month.
Consequently, their monthly premium will rise to 626,050 won, an increase of 20,900 won from before.
However, for workplace-based subscribers, the individual and the employer split the premium in half, so the actual additional amount an individual pays will be around 10,450 won per month.
Subscribers with a monthly income between 6.37 million won and 6.59 million won—falling between the old and new ceilings—will also see their premiums rise to some extent depending on their income.
For example, a subscriber with a monthly income of 6.50 million won previously paid 605,150 won (the premium for 6.37 million won due to the ceiling limit), but starting next month, the premium rate will apply to the entire 6.50 million won, requiring a monthly payment of 617,500 won.
Accordingly, the total premium will increase by 12,350 won, and for workplace-based subscribers, their individual contribution will increase by half of that, which is 6,175 won.
Subscribers in the lowest income bracket earning less than 410,000 won per month will also be affected by the floor adjustment. Their monthly premium will increase by 950 won, rising from 38,000 won (based on the previous floor of 400,000 won) to 38,950 won (based on the new floor of 410,000 won) starting next month.
On the other hand, subscribers with a monthly income between 410,000 won and 6.37 million won, who make up 86% of all national pension subscribers, will experience no direct change in their premiums due to this adjustment of the ceiling and floor.
If there is no change in their income, their premiums will not change due to this adjustment, and they will only continue to pay a certain additional monthly amount corresponding to the premium rate increase from 9% to 9.5% under the pension reform.
The increased burden on subscribers due to rising premiums is expected to be offset by the increase in the pension amount they will receive in retirement.
In particular, the national pension income replacement rate, which was 41.5% as of 2025, has been adjusted upward to 43% starting from 2026.
As a result, a structure has been established where the real value of the pension amount to be received in the future increases in proportion to the increase in the premiums paid.
Under the principle of "pay more, receive more," the retirement assets of high-income subscribers are set to become more substantial.
The adjustment of the standard monthly income for the national pension is an annual procedure regularly conducted to maintain the real value of the pension by reflecting actual changes in subscribers' income in the system.
During the period when the ceiling was frozen for 15 years in the past, critics pointed out that the system's function of guaranteeing retirement security was weakened because it failed to properly reflect inflation and income growth. However, this issue has been addressed through an automatic adjustment mechanism introduced in 2010.
An official from the Ministry of Health and Welfare explained, "This adjustment of the ceiling and floor is aimed at improving equity by accurately reflecting changes in subscribers' income levels."
The official also stated that the adjustment, in connection with the increase in the income replacement rate, aims to more robustly secure the public's retirement income, and that as the premiums paid increase, future payouts will also rise, contributing to the stability of retirement life.
(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.