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Welfare & health

National Pension contribution rate goes from 9% to 9.5% and the replacement rate to 43% — the first rate change since 1998 took effect in January 2026

In effectTakes effect: 2026-01-01
EveryoneWorkersForeign residentsNew citizens & PR holdersFamilies

The National Pension Act amended in 2025 took effect on 1 January 2026, lifting the contribution rate from the 9% that had been frozen since 1998 to 9.5%. It rises another 0.5 percentage points each year until it reaches 13% in 2033. In exchange the income replacement rate rose from 41.5% to 43%, and childbirth and military service credits plus support for low-income regional contributors were all expanded.

What changes

The contribution rate rose from 9% to 9.5%, the first adjustment since 1998. It does not stop there: the law also sets a schedule of 0.5 percentage points a year until the rate reaches 13% in 2033. In the Ministry of Health and Welfare's illustration, based on the average insured monthly income of 3.09 million won, a workplace contributor pays about 7,700 won more per month and a regional contributor about 15,400 won more. Workplace contributors split the amount with their employer; regional contributors pay all of it themselves.

The benefit side changed too. The income replacement rate rose from 41.5% to 43%. That figure expresses the pension you receive, after 40 years of contributions, as a percentage of your lifetime average income. People already drawing a pension see no change; the higher rate applies to those still contributing. The Act also gained a new clause stating that the state guarantees payment of pension benefits.

Credits and support were widened. The childbirth credit previously started from the second child; it now grants 12 months of insured period from the first child. The military service credit doubled from up to 6 months to 12 months. Contribution support for low-income regional contributors now reaches those earning under 800,000 won a month, expanding the eligible pool from roughly 190,000 people to roughly 730,000. The reduction applied to old-age pensions for people who keep working was also eased, with the revised standard applying from June 2026.

Who this applies to

  • Everyone enrolled in the National Pension aged 18 to under 60. Workplace contributors, regional contributors and voluntary contributors are all on the new rate.
  • Foreign nationals are in principle enrolled on the same terms as Korean nationals: as workplace contributors if employed at a covered workplace, otherwise as regional contributors.
  • However, as the National Pension Service explains, some groups are excluded: those exempted by law such as students, nationals of countries that do not require Korean nationals to join an equivalent scheme (reciprocity), and workers posted from countries with a social security agreement who can prove home-country coverage. Because this depends on your nationality and status of stay, check your own case.
  • Households with a new child and people who completed military service gain additional insured months through the wider credits.
  • Regional contributors earning under 800,000 won a month may qualify for contribution support.

What to do now

  1. 1If you are on a payroll, check the pension deduction on your 2026 payslips. Your employer contributes the same amount alongside you.
  2. 2If you are a regional contributor, make sure your direct debit account covers the higher amount. If your monthly income is under 800,000 won, ask the NPS on 1355 whether you qualify for contribution support.
  3. 3If you had a first child or completed military service, confirm through the 'My Pension' service or 1355 that the credit has been added to your insured period.
  4. 4If you are a foreign national, first confirm with the NPS whether your nationality is excluded under reciprocity, or covered by a social security agreement. Whether you are enrolled at all changes everything that follows.
  5. 5If you plan to leave Korea, check in advance whether you qualify for the lump-sum refund. The NPS states it is paid when: (1) your home country's law provides Korean nationals a benefit equivalent to the lump-sum refund, (2) a social security agreement on lump-sum refunds exists between Korea and your country, or (3) you contributed while holding E-8, E-9 or H-2 status.
  6. 6Claim the lump-sum refund within five years of becoming entitled. For claims based on reaching the eligible age, the period was extended to ten years from 25 January 2018.

Commonly misunderstood

  • It is too simple to call a higher rate a pure loss. The replacement rate rose as well, so the longer you keep contributing from here, the more your eventual pension grows.
  • 13% is not the 2026 figure. 2026 is 9.5%, and the rate climbs by 0.5 percentage points a year until it reaches 13% in 2033.
  • The 43% replacement rate assumes a full 40 years of contributions. A shorter insured period produces a proportionally lower result.
  • Being a foreign national does not automatically entitle you to a lump-sum refund. You must fall into one of the three cases above, and the outcome differs sharply by nationality and status of stay.
  • The National Pension and health insurance are entirely separate schemes. Paying pension contributions does not lower your hospital bills, and paying health insurance does not build up a pension.

Official sources

The links below are official government publications. This page summarises them; always check the original before filing or applying.

Verified on: 2026-08-24

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Related policy updates

This page explains a policy change and is not legal advice. Confirm how it applies to your situation with the responsible agency.

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National Pension contribution rate goes from 9% to 9.5% and the replacement rate to 43% — the first rate change since 1998 took effect in January 2026