National Pension Premium Ceiling Raised to 6.59 Million Won, Increasing Burden on High Earners

The income ceiling and floor used to calculate National Pension premiums will be adjusted upward starting next month, reflecting the rise in national income levels.

According to the Ministry of Health and Welfare, the adjustment plan for the monthly reference income ceiling and floor for the National Pension has been finalized and will be applied for one year, from the 1st of next month to June of next year.

This adjustment reflects the 3.4% average income growth rate of all subscribers over the past three years.

As a result, the income ceiling, which is the maximum threshold for calculating premiums, will increase from the current 6.37 million won to 6.59 million won.

The income floor, the minimum threshold, will change from the current 400,000 won to 410,000 won.

The National Pension system calculates premiums based on the ceiling regardless of how high a subscriber's income is, and uses the floor as the minimum basis for those with very low incomes.

This adjustment will most directly affect high-income subscribers earning more than 6.37 million won per month.

Subscribers with the highest incomes, who previously paid premiums based on the 6.37 million won ceiling, will be subject to the new 6.59 million won ceiling starting next month. Their monthly premium will rise by 20,900 won to 626,050 won.

However, for workplace subscribers, the premium is split equally between the employee and the employer, meaning the actual additional burden for an individual will be approximately 10,450 won per month.

Subscribers with monthly incomes between 6.37 million won and 6.59 million won, who fall between the old and new ceilings, will also see their premiums increase to some extent depending on their income.

For example, a subscriber with a monthly income of 6.5 million won previously paid 605,150 won, which was the premium based on the 6.37 million won ceiling. Starting next month, the premium rate will be applied to the full 6.5 million won, resulting in a monthly payment of 617,500 won.

Consequently, the total premium will increase by 12,350 won, and for workplace subscribers, the individual's share will increase by half that amount, or 6,175 won.

For subscribers with the lowest incomes, the premium will increase by 950 won per month, rising from 38,000 won based on the old 400,000 won floor to 38,950 won based on the new 410,000 won floor starting next month.

Subscribers with monthly incomes between 410,000 won and 6.37 million won, who account for 86% of all National Pension subscribers, will not see any direct changes to their premiums due to this adjustment of the ceiling and floor.
※ Please note: This article was translated by AI and may contain errors.