{"content_id":"kbu8xozvsb","slug":"national-pension-premium-july-income-ceiling-floor-rate","locale":"en","schema_type":"Article","category":"knowledge_base","category_name":"Knowledge Base","title":"July National Pension Premium Increase: Overview of the Upper and Lower Limits of the Standard Monthly Income and the 9.5% Premium Rate","summary":"Starting in July, the upper and lower limits for the standard monthly income—which serves as the basis for calculating National Pension premiums—will be adjusted to 6.59 million won and 410,000 won per month, respectively. When the 9.5% premium rate is applied to these amounts, the actual amount paid may change for high-income, low-income, and middle-income earners alike.","author":{"name":"Injoys Editorial Team","url":"https://injoys.com/ko/about"},"key_points":["The upper limit for the National Pension’s standard monthly income will rise from 6.37 million won to 6.59 million won, and the lower limit will rise from 400,000 won to 410,000 won.","When the 9.5% contribution rate is applied, the maximum monthly National Pension contribution is 626,050 won.","Individuals whose income exceeds the cap will be affected by both the cap adjustment and the increase in the premium rate, so their premium payments will increase the most.","Since employees and employers each pay half of the insurance premium, the employee’s share is half of the total increase in the premium.","Although the burden of insurance premiums is increasing, the rise in the standard monthly income and the income replacement rate will serve to increase the amount of future old-age pensions."],"content_markdown":"## Changes at a Glance\n\nStarting in July, both the upper and lower limits of the standard monthly income used to calculate National Pension premiums will be adjusted. The standard monthly income is the key basis for calculating National Pension premiums and future pension benefits.\n\nThere are two key aspects to this adjustment.\n\n1. **Increase in the Upper and Lower Limits of the Standard Monthly Income**: The maximum and minimum income thresholds used to calculate premiums will rise.\n2. **Application of a 9.5% Premium Rate**: Even for the same income level, a higher premium rate will result in an increase in the monthly premium paid.\n\nHowever, the National Pension is not simply a tax but a social insurance program that calculates retirement benefits. While higher premiums increase the immediate financial burden, they also have the effect of raising the income threshold used to calculate future old-age pension benefits.\n\n## What Is the Standard Monthly Income?\n\n**Standard Monthly Income** is the amount recognized within a certain range as the subscriber’s monthly income for the purpose of calculating National Pension premiums and benefits.\n\nPremiums are not levied indefinitely even if income is very high, and a minimum threshold is set even if income is very low. The following two thresholds are used for this purpose.\n\n| Category | Meaning |\n|---|---|\n| Upper Limit | The maximum monthly income recognized for calculating insurance premiums |\n| Lower Limit | The minimum monthly income recognized for calculating premiums |\n\nFor example, if the upper limit is 6.59 million won per month, even if your actual monthly income is 8 million won, only up to 6.59 million won will be reflected in the National Pension premium calculation. Conversely, if the lower limit is 410,000 won per month, premiums may be calculated based on 410,000 won per month even for subscribers whose reported or recognized income is lower than that amount.\n\n## Changes to the Upper and Lower Limits Effective July\n\nWith this adjustment, the upper limit for the standard monthly income will rise from 6.37 million won to 6.59 million won, and the lower limit will rise from 400,000 won to 410,000 won.\n\n| Item | Previous | Change | Increase |\n|---|---:|---:|---:|\n| Upper Limit of Standard Monthly Income | 6.37 million won | 6.59 million won | 220,000 won |\n| Lower Limit of Standard Monthly Income | 400,000 won | 410,000 won | 10,000 won |\n\nThese standards are periodically adjusted to reflect changes in the average income of all subscribers. As wages and prices rise, past upper and lower limits fail to accurately reflect current income levels; therefore, the National Pension Service adjusts the standard monthly income to update the criteria for calculating premiums and benefits.\n\n## How much will premiums increase if the 9.5% premium rate is applied?\n\nNational Pension premiums are generally calculated as follows:\n\n\u003e National Pension Premium = Standard Monthly Income × Premium Rate\n\nThe premium rate assumed in this discussion is **9.5%**.\n\n### Maximum Monthly Premium\n\nApplying the 9.5% premium rate to the monthly cap of 6.59 million won results in the following maximum monthly premium:\n\n| Calculation | Amount |\n|---|---:|\n| 6.59 million won × 9.5% | 626,050 won |\n\nTherefore, the total monthly National Pension premium for subscribers whose monthly reference income is at or above the cap is **626,050 won**.\n\nFor workplace subscribers, this amount is split equally between the employee and the employer.\n\n| Category | Monthly Contribution |\n|---|---:|\n| Total Premium | 626,050 won |\n| Employee’s Share | 313,025 won |\n| Employer’s Share | 313,025 won |\n\nFor regional subscribers or voluntary subscribers who bear the full cost of premiums themselves, the perceived financial burden may differ from that of workplace subscribers.\n\n## Why Are Those with Incomes Exceeding the Upper Limit Most Affected?\n\nSubscribers whose monthly income exceeds the previous cap of 6.37 million won will be most significantly affected by this adjustment. This is because, while premiums were previously calculated only on income up to 6.37 million won, the revised rules now recognize income up to 6.59 million won for premium calculation purposes.\n\nWhen combined with the increase in the premium rate, the rise in the amount payable becomes even greater.\n\n| Comparison Method | Previous Premium | Revised Premium | Monthly Increase |\n|---|---:|---:|---:|\n| 9% applied to the previous 6.37 million won; 9.5% applied to the revised 6.59 million won | 573,300 won | 626,050 won | 52,750 won |\n| Comparing only the change in the cap while keeping the premium rate at 9.5% | 605,150 won | 626,050 won | 20,900 won |\n\nIn other words, **if we consider only the effect of the cap increase, the monthly increase is 20,900 won**, and **if we also factor in the effect of the premium rate rising from 9% to 9.5%, the monthly increase is 52,750 won**.\n\nSince employers cover half of the cost for workplace subscribers, the increase in their out-of-pocket expenses is also calculated as half.\n\n| Comparison Method | Total Premium Increase | Increase in Out-of-Pocket Expenses for Workplace Subscribers |\n|---|---:|---:|\n| Comparing only the change in the upper limit | 20,900 won per month | 10,450 won per month |\n| Reflecting both the change in the upper limit and the premium rate | 52,750 won per month | 26,375 won per month |\n\n## How will this affect those with incomes below the lower limit?\n\nThe lower limit for the standard monthly income will rise from 400,000 won to 410,000 won. Applying the 9.5% premium rate, the premium based on the lower limit is as follows.\n\n| Category | Calculation | Total Premium |\n|---|---|---:|\n| Previous lower limit with 9% applied | 400,000 won × 9% | 36,000 won |\n| Revised lower limit and 9.5% rate | 410,000 won × 9.5% | 38,950 won |\n\nIf we compare only the adjustment to the lower limit based on the 9.5% rate, the increase is approximately 950 won. However, when considering the combined effect of the increase from the previous premium rate of 9% to 9.5%, the total premium based on the minimum threshold rises by 2,950 won per month.\n\nFor employed subscribers, half of this increase will be reflected in their out-of-pocket costs.\n\n## What changes for middle-income subscribers?\n\nFor subscribers whose monthly base income falls between the previous lower and upper limits, the direct impact of the adjustments to the upper and lower limits is relatively small. Based on the provided data, subscribers in the range of 410,000 won to 6,370,000 won per month make up the majority of the total.\n\nHowever, if the premium rate rises from 9% to 9.5%, premiums will also increase for subscribers in this bracket. Assuming the monthly reference income remains unchanged, the increase in the total premium amount is calculated as follows:\n\n\u003e Monthly premium increase = Monthly reference income × 0.5 percentage points\n\nHere is an example:\n\n| Monthly Base Income | 9% Premium | 9.5% Premium | Total Premium Increase | Increase in Employee’s Share |\n|---:|---:|---:|---:|---:|\n| 1 million won | 90,000 won | 95,000 won | 5,000 won | 2,500 won |\n| 2 million won | 180,000 won | 190,000 won | 10,000 won | 5,000 won |\n| 3 million won | 270,000 won | 285,000 won | 15,000 won | 7,500 won |\n| 4 million won | 360,000 won | 380,000 won | 20,000 won | 10,000 won |\n| 5 million won | 450,000 won | 475,000 won | 25,000 won | 12,500 won |\n\n## Perceived Differences Between Workplace and Regional Enrollees\n\nThe impact of the National Pension premium increase varies depending on the enrollment type.\n\n| Enrollment Type | Premium Burden Method | Perceived Impact of Increase |\n|---|---|---|\n| Workplace Enrollees | Employee and employer each bear half | The amount deducted from the pay stub represents half of the total increase |\n| Regional Enrollees | The individual bears the full cost | The individual bears the entire increase shown on the bill |\n| Voluntary Enrollees | Bear the full cost based on their chosen criteria | The increase in burden depends on the selected monthly reference income and the premium rate |\n\nTherefore, even with the same monthly reference income, workplace enrollees experience a smaller increase in their actual household cash flow because the employer covers half, whereas regional enrollees bear the entire increase directly.\n\n## If insurance premiums rise, will the pension I receive later also increase?\n\nThe National Pension System calculates old-age pensions based on factors such as paid premiums, the period of enrollment, the average income of all enrollees, and the individual’s average lifetime income. While the system is not simply structured so that “you get back exactly what you paid in this month’s premium increase,” a higher standard monthly income can raise the income threshold used to calculate your future pension amount.\n\nChanges in the income replacement rate are particularly important.\n\nThe **income replacement rate** refers to the ratio of the pension amount received after retirement to the average income earned during the subscriber’s working years. Generally, the National Pension’s income replacement rate is explained based on an average-income earner who has been enrolled for 40 years.\n\nAccording to the proposed reform criteria, the income replacement rate will increase from 41.5% to 43%. This means that the system’s standards will be adjusted so that, for an average-income earner who has been enrolled for 40 years, the future pension amount will be 43% of their lifetime average income.\n\n## Why Is the Standard Monthly Income Adjusted Every Year?\n\nIf the upper and lower limits of the standard monthly income remain fixed for a long time, they may become out of step with reality. If the upper limit is kept low even as wages rise and inflation increases, the actual income growth of high-income earners will not be sufficiently reflected in the pension calculation criteria. Conversely, if the lower limit is set too low, the criteria for calculating the minimum premium and minimum benefits may become disconnected from actual income levels.\n\nThe National Pension Service adjusts the standard monthly income to reflect changes in the average income of subscribers. The provided data explains that the adjustment reflects a 3.4% increase in the average income of all subscribers over the past three years.\n\n## What Subscribers Need to Check\n\nThe extent to which your financial burden will increase as a result of this adjustment depends on your subscription type and standard monthly income. You can quickly determine the actual impact by checking the following items.\n\n### 1. Your Standard Monthly Income\n\nYou should verify your currently applicable standard monthly income through your pay stub, National Pension statement, or the National Pension Service’s online portal. Your actual monthly salary may not always be exactly the same as your standard monthly income.\n\n### 2. Enrollment Type\n\nFor workplace enrollees, the employer covers half of the premium, whereas regional enrollees are responsible for the full amount. Therefore, even with the same total increase in premiums, the burden on households will differ.\n\n### 3. Whether You Fall Within the Upper or Lower Income Brackets\n\nIf your monthly income exceeds the upper limit or falls below the lower limit, you will be directly affected by adjustments to the standard monthly income. If your income falls within the middle range, the impact of the premium rate increase will be the primary factor.\n\n### 4. Projected Future Pension Amount\n\nWhile a premium increase may be a short-term burden, it can have a positive effect on the calculation of your future old-age pension. However, the actual projected pension amount varies depending on factors such as the duration of enrollment, payment history, income fluctuations, and the age at which benefits begin.\n\n## Key Points\n\n- The upper limit for the standard monthly income is adjusted to 6.59 million won per month, and the lower limit to 410,000 won per month.\n- When the 9.5% premium rate is applied, the maximum monthly premium is 626,050 won.\n- Employed subscribers pay half of the total premium, while the employer pays the other half.\n- Individuals with incomes exceeding the upper limit may be affected by both the increase in the upper limit and the increase in the premium rate.\n- For middle-income subscribers, the increase in the premium rate is the primary factor driving the rise in their burden, rather than the adjustments to the upper and lower limits.\n- The application of a 43% income replacement rate represents a change aimed at increasing the calculated amount of future old-age pensions.","content_html":"\u003ch2\u003e\n\u003ca href=\"#changes-at-a-glance\" class=\"anchor\" id=\"changes-at-a-glance\"\u003e\u003c/a\u003eChanges at a Glance\u003c/h2\u003e\n\u003cp\u003eStarting in July, both the upper and lower limits of the standard monthly income used to calculate National Pension premiums will be adjusted. The standard monthly income is the key basis for calculating National Pension premiums and future pension benefits.\u003c/p\u003e\n\u003cp\u003eThere are two key aspects to this adjustment.\u003c/p\u003e\n\u003col\u003e\n\u003cli\u003e\n\u003cstrong\u003eIncrease in the Upper and Lower Limits of the Standard Monthly Income\u003c/strong\u003e: The maximum and minimum income thresholds used to calculate premiums will rise.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eApplication of a 9.5% Premium Rate\u003c/strong\u003e: Even for the same income level, a higher premium rate will result in an increase in the monthly premium paid.\u003c/li\u003e\n\u003c/ol\u003e\n\u003cp\u003eHowever, the National Pension is not simply a tax but a social insurance program that calculates retirement benefits. While higher premiums increase the immediate financial burden, they also have the effect of raising the income threshold used to calculate future old-age pension benefits.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#what-is-the-standard-monthly-income\" class=\"anchor\" id=\"what-is-the-standard-monthly-income\"\u003e\u003c/a\u003eWhat Is the Standard Monthly Income?\u003c/h2\u003e\n\u003cp\u003e\u003cstrong\u003eStandard Monthly Income\u003c/strong\u003e is the amount recognized within a certain range as the subscriber’s monthly income for the purpose of calculating National Pension premiums and benefits.\u003c/p\u003e\n\u003cp\u003ePremiums are not levied indefinitely even if income is very high, and a minimum threshold is set even if income is very low. The following two thresholds are used for this purpose.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eCategory\u003c/th\u003e\n\u003cth\u003eMeaning\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eUpper Limit\u003c/td\u003e\n\u003ctd data-label=\"Meaning\"\u003eThe maximum monthly income recognized for calculating insurance premiums\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eLower Limit\u003c/td\u003e\n\u003ctd data-label=\"Meaning\"\u003eThe minimum monthly income recognized for calculating premiums\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eFor example, if the upper limit is 6.59 million won per month, even if your actual monthly income is 8 million won, only up to 6.59 million won will be reflected in the National Pension premium calculation. Conversely, if the lower limit is 410,000 won per month, premiums may be calculated based on 410,000 won per month even for subscribers whose reported or recognized income is lower than that amount.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#changes-to-the-upper-and-lower-limits-effective-july\" class=\"anchor\" id=\"changes-to-the-upper-and-lower-limits-effective-july\"\u003e\u003c/a\u003eChanges to the Upper and Lower Limits Effective July\u003c/h2\u003e\n\u003cp\u003eWith this adjustment, the upper limit for the standard monthly income will rise from 6.37 million won to 6.59 million won, and the lower limit will rise from 400,000 won to 410,000 won.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eItem\u003c/th\u003e\n\u003cth\u003ePrevious\u003c/th\u003e\n\u003cth\u003eChange\u003c/th\u003e\n\u003cth\u003eIncrease\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Item\"\u003eUpper Limit of Standard Monthly Income\u003c/td\u003e\n\u003ctd data-label=\"Previous\"\u003e6.37 million won\u003c/td\u003e\n\u003ctd data-label=\"Change\"\u003e6.59 million won\u003c/td\u003e\n\u003ctd data-label=\"Increase\"\u003e220,000 won\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Item\"\u003eLower Limit of Standard Monthly Income\u003c/td\u003e\n\u003ctd data-label=\"Previous\"\u003e400,000 won\u003c/td\u003e\n\u003ctd data-label=\"Change\"\u003e410,000 won\u003c/td\u003e\n\u003ctd data-label=\"Increase\"\u003e10,000 won\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eThese standards are periodically adjusted to reflect changes in the average income of all subscribers. As wages and prices rise, past upper and lower limits fail to accurately reflect current income levels; therefore, the National Pension Service adjusts the standard monthly income to update the criteria for calculating premiums and benefits.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#how-much-will-premiums-increase-if-the-95-premium-rate-is-applied\" class=\"anchor\" id=\"how-much-will-premiums-increase-if-the-95-premium-rate-is-applied\"\u003e\u003c/a\u003eHow much will premiums increase if the 9.5% premium rate is applied?\u003c/h2\u003e\n\u003cp\u003eNational Pension premiums are generally calculated as follows:\u003c/p\u003e\n\u003cblockquote\u003e\n\u003cp\u003eNational Pension Premium = Standard Monthly Income × Premium Rate\u003c/p\u003e\n\u003c/blockquote\u003e\n\u003cp\u003eThe premium rate assumed in this discussion is \u003cstrong\u003e9.5%\u003c/strong\u003e.\u003c/p\u003e\n\u003ch3\u003e\n\u003ca href=\"#maximum-monthly-premium\" class=\"anchor\" id=\"maximum-monthly-premium\"\u003e\u003c/a\u003eMaximum Monthly Premium\u003c/h3\u003e\n\u003cp\u003eApplying the 9.5% premium rate to the monthly cap of 6.59 million won results in the following maximum monthly premium:\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eCalculation\u003c/th\u003e\n\u003cth\u003eAmount\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Calculation\"\u003e6.59 million won × 9.5%\u003c/td\u003e\n\u003ctd data-label=\"Amount\"\u003e626,050 won\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eTherefore, the total monthly National Pension premium for subscribers whose monthly reference income is at or above the cap is \u003cstrong\u003e626,050 won\u003c/strong\u003e.\u003c/p\u003e\n\u003cp\u003eFor workplace subscribers, this amount is split equally between the employee and the employer.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eCategory\u003c/th\u003e\n\u003cth\u003eMonthly Contribution\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eTotal Premium\u003c/td\u003e\n\u003ctd data-label=\"Monthly Contribution\"\u003e626,050 won\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eEmployee’s Share\u003c/td\u003e\n\u003ctd data-label=\"Monthly Contribution\"\u003e313,025 won\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eEmployer’s Share\u003c/td\u003e\n\u003ctd data-label=\"Monthly Contribution\"\u003e313,025 won\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eFor regional subscribers or voluntary subscribers who bear the full cost of premiums themselves, the perceived financial burden may differ from that of workplace subscribers.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#why-are-those-with-incomes-exceeding-the-upper-limit-most-affected\" class=\"anchor\" id=\"why-are-those-with-incomes-exceeding-the-upper-limit-most-affected\"\u003e\u003c/a\u003eWhy Are Those with Incomes Exceeding the Upper Limit Most Affected?\u003c/h2\u003e\n\u003cp\u003eSubscribers whose monthly income exceeds the previous cap of 6.37 million won will be most significantly affected by this adjustment. This is because, while premiums were previously calculated only on income up to 6.37 million won, the revised rules now recognize income up to 6.59 million won for premium calculation purposes.\u003c/p\u003e\n\u003cp\u003eWhen combined with the increase in the premium rate, the rise in the amount payable becomes even greater.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eComparison Method\u003c/th\u003e\n\u003cth\u003ePrevious Premium\u003c/th\u003e\n\u003cth\u003eRevised Premium\u003c/th\u003e\n\u003cth\u003eMonthly Increase\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Comparison Method\"\u003e9% applied to the previous 6.37 million won; 9.5% applied to the revised 6.59 million won\u003c/td\u003e\n\u003ctd data-label=\"Previous Premium\"\u003e573,300 won\u003c/td\u003e\n\u003ctd data-label=\"Revised Premium\"\u003e626,050 won\u003c/td\u003e\n\u003ctd data-label=\"Monthly Increase\"\u003e52,750 won\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Comparison Method\"\u003eComparing only the change in the cap while keeping the premium rate at 9.5%\u003c/td\u003e\n\u003ctd data-label=\"Previous Premium\"\u003e605,150 won\u003c/td\u003e\n\u003ctd data-label=\"Revised Premium\"\u003e626,050 won\u003c/td\u003e\n\u003ctd data-label=\"Monthly Increase\"\u003e20,900 won\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eIn other words, \u003cstrong\u003eif we consider only the effect of the cap increase, the monthly increase is 20,900 won\u003c/strong\u003e, and \u003cstrong\u003eif we also factor in the effect of the premium rate rising from 9% to 9.5%, the monthly increase is 52,750 won\u003c/strong\u003e.\u003c/p\u003e\n\u003cp\u003eSince employers cover half of the cost for workplace subscribers, the increase in their out-of-pocket expenses is also calculated as half.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eComparison Method\u003c/th\u003e\n\u003cth\u003eTotal Premium Increase\u003c/th\u003e\n\u003cth\u003eIncrease in Out-of-Pocket Expenses for Workplace Subscribers\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Comparison Method\"\u003eComparing only the change in the upper limit\u003c/td\u003e\n\u003ctd data-label=\"Total Premium Increase\"\u003e20,900 won per month\u003c/td\u003e\n\u003ctd data-label=\"Increase in Out-of-Pocket Expenses for Workplace Subscribers\"\u003e10,450 won per month\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Comparison Method\"\u003eReflecting both the change in the upper limit and the premium rate\u003c/td\u003e\n\u003ctd data-label=\"Total Premium Increase\"\u003e52,750 won per month\u003c/td\u003e\n\u003ctd data-label=\"Increase in Out-of-Pocket Expenses for Workplace Subscribers\"\u003e26,375 won per month\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003ch2\u003e\n\u003ca href=\"#how-will-this-affect-those-with-incomes-below-the-lower-limit\" class=\"anchor\" id=\"how-will-this-affect-those-with-incomes-below-the-lower-limit\"\u003e\u003c/a\u003eHow will this affect those with incomes below the lower limit?\u003c/h2\u003e\n\u003cp\u003eThe lower limit for the standard monthly income will rise from 400,000 won to 410,000 won. Applying the 9.5% premium rate, the premium based on the lower limit is as follows.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eCategory\u003c/th\u003e\n\u003cth\u003eCalculation\u003c/th\u003e\n\u003cth\u003eTotal Premium\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003ePrevious lower limit with 9% applied\u003c/td\u003e\n\u003ctd data-label=\"Calculation\"\u003e400,000 won × 9%\u003c/td\u003e\n\u003ctd data-label=\"Total Premium\"\u003e36,000 won\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eRevised lower limit and 9.5% rate\u003c/td\u003e\n\u003ctd data-label=\"Calculation\"\u003e410,000 won × 9.5%\u003c/td\u003e\n\u003ctd data-label=\"Total Premium\"\u003e38,950 won\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eIf we compare only the adjustment to the lower limit based on the 9.5% rate, the increase is approximately 950 won. However, when considering the combined effect of the increase from the previous premium rate of 9% to 9.5%, the total premium based on the minimum threshold rises by 2,950 won per month.\u003c/p\u003e\n\u003cp\u003eFor employed subscribers, half of this increase will be reflected in their out-of-pocket costs.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#what-changes-for-middle-income-subscribers\" class=\"anchor\" id=\"what-changes-for-middle-income-subscribers\"\u003e\u003c/a\u003eWhat changes for middle-income subscribers?\u003c/h2\u003e\n\u003cp\u003eFor subscribers whose monthly base income falls between the previous lower and upper limits, the direct impact of the adjustments to the upper and lower limits is relatively small. Based on the provided data, subscribers in the range of 410,000 won to 6,370,000 won per month make up the majority of the total.\u003c/p\u003e\n\u003cp\u003eHowever, if the premium rate rises from 9% to 9.5%, premiums will also increase for subscribers in this bracket. Assuming the monthly reference income remains unchanged, the increase in the total premium amount is calculated as follows:\u003c/p\u003e\n\u003cblockquote\u003e\n\u003cp\u003eMonthly premium increase = Monthly reference income × 0.5 percentage points\u003c/p\u003e\n\u003c/blockquote\u003e\n\u003cp\u003eHere is an example:\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eMonthly Base Income\u003c/th\u003e\n\u003cth\u003e9% Premium\u003c/th\u003e\n\u003cth\u003e9.5% Premium\u003c/th\u003e\n\u003cth\u003eTotal Premium Increase\u003c/th\u003e\n\u003cth\u003eIncrease in Employee’s Share\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Monthly Base Income\"\u003e1 million won\u003c/td\u003e\n\u003ctd data-label=\"9% Premium\"\u003e90,000 won\u003c/td\u003e\n\u003ctd data-label=\"9.5% Premium\"\u003e95,000 won\u003c/td\u003e\n\u003ctd data-label=\"Total Premium Increase\"\u003e5,000 won\u003c/td\u003e\n\u003ctd data-label=\"Increase in Employee’s Share\"\u003e2,500 won\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Monthly Base Income\"\u003e2 million won\u003c/td\u003e\n\u003ctd data-label=\"9% Premium\"\u003e180,000 won\u003c/td\u003e\n\u003ctd data-label=\"9.5% Premium\"\u003e190,000 won\u003c/td\u003e\n\u003ctd data-label=\"Total Premium Increase\"\u003e10,000 won\u003c/td\u003e\n\u003ctd data-label=\"Increase in Employee’s Share\"\u003e5,000 won\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Monthly Base Income\"\u003e3 million won\u003c/td\u003e\n\u003ctd data-label=\"9% Premium\"\u003e270,000 won\u003c/td\u003e\n\u003ctd data-label=\"9.5% Premium\"\u003e285,000 won\u003c/td\u003e\n\u003ctd data-label=\"Total Premium Increase\"\u003e15,000 won\u003c/td\u003e\n\u003ctd data-label=\"Increase in Employee’s Share\"\u003e7,500 won\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Monthly Base Income\"\u003e4 million won\u003c/td\u003e\n\u003ctd data-label=\"9% Premium\"\u003e360,000 won\u003c/td\u003e\n\u003ctd data-label=\"9.5% Premium\"\u003e380,000 won\u003c/td\u003e\n\u003ctd data-label=\"Total Premium Increase\"\u003e20,000 won\u003c/td\u003e\n\u003ctd data-label=\"Increase in Employee’s Share\"\u003e10,000 won\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Monthly Base Income\"\u003e5 million won\u003c/td\u003e\n\u003ctd data-label=\"9% Premium\"\u003e450,000 won\u003c/td\u003e\n\u003ctd data-label=\"9.5% Premium\"\u003e475,000 won\u003c/td\u003e\n\u003ctd data-label=\"Total Premium Increase\"\u003e25,000 won\u003c/td\u003e\n\u003ctd data-label=\"Increase in Employee’s Share\"\u003e12,500 won\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003ch2\u003e\n\u003ca href=\"#perceived-differences-between-workplace-and-regional-enrollees\" class=\"anchor\" id=\"perceived-differences-between-workplace-and-regional-enrollees\"\u003e\u003c/a\u003ePerceived Differences Between Workplace and Regional Enrollees\u003c/h2\u003e\n\u003cp\u003eThe impact of the National Pension premium increase varies depending on the enrollment type.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eEnrollment Type\u003c/th\u003e\n\u003cth\u003ePremium Burden Method\u003c/th\u003e\n\u003cth\u003ePerceived Impact of Increase\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Enrollment Type\"\u003eWorkplace Enrollees\u003c/td\u003e\n\u003ctd data-label=\"Premium Burden Method\"\u003eEmployee and employer each bear half\u003c/td\u003e\n\u003ctd data-label=\"Perceived Impact of Increase\"\u003eThe amount deducted from the pay stub represents half of the total increase\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Enrollment Type\"\u003eRegional Enrollees\u003c/td\u003e\n\u003ctd data-label=\"Premium Burden Method\"\u003eThe individual bears the full cost\u003c/td\u003e\n\u003ctd data-label=\"Perceived Impact of Increase\"\u003eThe individual bears the entire increase shown on the bill\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Enrollment Type\"\u003eVoluntary Enrollees\u003c/td\u003e\n\u003ctd data-label=\"Premium Burden Method\"\u003eBear the full cost based on their chosen criteria\u003c/td\u003e\n\u003ctd data-label=\"Perceived Impact of Increase\"\u003eThe increase in burden depends on the selected monthly reference income and the premium rate\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eTherefore, even with the same monthly reference income, workplace enrollees experience a smaller increase in their actual household cash flow because the employer covers half, whereas regional enrollees bear the entire increase directly.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#if-insurance-premiums-rise-will-the-pension-i-receive-later-also-increase\" class=\"anchor\" id=\"if-insurance-premiums-rise-will-the-pension-i-receive-later-also-increase\"\u003e\u003c/a\u003eIf insurance premiums rise, will the pension I receive later also increase?\u003c/h2\u003e\n\u003cp\u003eThe National Pension System calculates old-age pensions based on factors such as paid premiums, the period of enrollment, the average income of all enrollees, and the individual’s average lifetime income. While the system is not simply structured so that “you get back exactly what you paid in this month’s premium increase,” a higher standard monthly income can raise the income threshold used to calculate your future pension amount.\u003c/p\u003e\n\u003cp\u003eChanges in the income replacement rate are particularly important.\u003c/p\u003e\n\u003cp\u003eThe \u003cstrong\u003eincome replacement rate\u003c/strong\u003e refers to the ratio of the pension amount received after retirement to the average income earned during the subscriber’s working years. Generally, the National Pension’s income replacement rate is explained based on an average-income earner who has been enrolled for 40 years.\u003c/p\u003e\n\u003cp\u003eAccording to the proposed reform criteria, the income replacement rate will increase from 41.5% to 43%. This means that the system’s standards will be adjusted so that, for an average-income earner who has been enrolled for 40 years, the future pension amount will be 43% of their lifetime average income.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#why-is-the-standard-monthly-income-adjusted-every-year\" class=\"anchor\" id=\"why-is-the-standard-monthly-income-adjusted-every-year\"\u003e\u003c/a\u003eWhy Is the Standard Monthly Income Adjusted Every Year?\u003c/h2\u003e\n\u003cp\u003eIf the upper and lower limits of the standard monthly income remain fixed for a long time, they may become out of step with reality. If the upper limit is kept low even as wages rise and inflation increases, the actual income growth of high-income earners will not be sufficiently reflected in the pension calculation criteria. Conversely, if the lower limit is set too low, the criteria for calculating the minimum premium and minimum benefits may become disconnected from actual income levels.\u003c/p\u003e\n\u003cp\u003eThe National Pension Service adjusts the standard monthly income to reflect changes in the average income of subscribers. The provided data explains that the adjustment reflects a 3.4% increase in the average income of all subscribers over the past three years.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#what-subscribers-need-to-check\" class=\"anchor\" id=\"what-subscribers-need-to-check\"\u003e\u003c/a\u003eWhat Subscribers Need to Check\u003c/h2\u003e\n\u003cp\u003eThe extent to which your financial burden will increase as a result of this adjustment depends on your subscription type and standard monthly income. You can quickly determine the actual impact by checking the following items.\u003c/p\u003e\n\u003ch3\u003e\n\u003ca href=\"#1-your-standard-monthly-income\" class=\"anchor\" id=\"1-your-standard-monthly-income\"\u003e\u003c/a\u003e1. Your Standard Monthly Income\u003c/h3\u003e\n\u003cp\u003eYou should verify your currently applicable standard monthly income through your pay stub, National Pension statement, or the National Pension Service’s online portal. Your actual monthly salary may not always be exactly the same as your standard monthly income.\u003c/p\u003e\n\u003ch3\u003e\n\u003ca href=\"#2-enrollment-type\" class=\"anchor\" id=\"2-enrollment-type\"\u003e\u003c/a\u003e2. Enrollment Type\u003c/h3\u003e\n\u003cp\u003eFor workplace enrollees, the employer covers half of the premium, whereas regional enrollees are responsible for the full amount. Therefore, even with the same total increase in premiums, the burden on households will differ.\u003c/p\u003e\n\u003ch3\u003e\n\u003ca href=\"#3-whether-you-fall-within-the-upper-or-lower-income-brackets\" class=\"anchor\" id=\"3-whether-you-fall-within-the-upper-or-lower-income-brackets\"\u003e\u003c/a\u003e3. Whether You Fall Within the Upper or Lower Income Brackets\u003c/h3\u003e\n\u003cp\u003eIf your monthly income exceeds the upper limit or falls below the lower limit, you will be directly affected by adjustments to the standard monthly income. If your income falls within the middle range, the impact of the premium rate increase will be the primary factor.\u003c/p\u003e\n\u003ch3\u003e\n\u003ca href=\"#4-projected-future-pension-amount\" class=\"anchor\" id=\"4-projected-future-pension-amount\"\u003e\u003c/a\u003e4. Projected Future Pension Amount\u003c/h3\u003e\n\u003cp\u003eWhile a premium increase may be a short-term burden, it can have a positive effect on the calculation of your future old-age pension. However, the actual projected pension amount varies depending on factors such as the duration of enrollment, payment history, income fluctuations, and the age at which benefits begin.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#key-points\" class=\"anchor\" id=\"key-points\"\u003e\u003c/a\u003eKey Points\u003c/h2\u003e\n\u003cul\u003e\n\u003cli\u003eThe upper limit for the standard monthly income is adjusted to 6.59 million won per month, and the lower limit to 410,000 won per month.\u003c/li\u003e\n\u003cli\u003eWhen the 9.5% premium rate is applied, the maximum monthly premium is 626,050 won.\u003c/li\u003e\n\u003cli\u003eEmployed subscribers pay half of the total premium, while the employer pays the other half.\u003c/li\u003e\n\u003cli\u003eIndividuals with incomes exceeding the upper limit may be affected by both the increase in the upper limit and the increase in the premium rate.\u003c/li\u003e\n\u003cli\u003eFor middle-income subscribers, the increase in the premium rate is the primary factor driving the rise in their burden, rather than the adjustments to the upper and lower limits.\u003c/li\u003e\n\u003cli\u003eThe application of a 43% income replacement rate represents a change aimed at increasing the calculated amount of future old-age pensions.\u003c/li\u003e\n\u003c/ul\u003e\n","tags":["National Pension","Insurance premiums","Standard monthly income","Pension reform","Retirement planning"],"faqs":[{"question":"What is the maximum monthly income threshold for the National Pension starting in July?","answer":"The monthly income cap for National Pension contributions, effective in July, is 6.59 million won. Even if your actual monthly income exceeds this amount, only up to 6.59 million won will be used to calculate your National Pension premiums."},{"question":"What is the minimum monthly income threshold for the National Pension starting in July?","answer":"The lower limit for the standard monthly income will increase from 400,000 won to 410,000 won. For subscribers whose income is below this lower limit, insurance premiums may be calculated based on 410,000 won per month."},{"question":"If the insurance premium rate is 9.5%, what is the maximum monthly National Pension premium?","answer":"When the 9.5% premium rate is applied to the monthly cap of 6.59 million won, the maximum monthly premium is 626,050 won. For employed subscribers, they pay half of this amount—313,025 won—and their employer pays the other half."},{"question":"Do employed subscribers have to pay the entire increase in National Pension premiums themselves?","answer":"No. For employed individuals, National Pension premiums are split equally between the employee and the employer. Therefore, if the total premium increases by 20,000 won, the additional amount deducted from your paycheck—your share of the premium—is typically 10,000 won."},{"question":"How do regional subscribers pay the increased National Pension premiums?","answer":"As a general rule, local subscribers are responsible for paying the full amount of their National Pension premiums. Therefore, if premiums increase due to a rise in the standard monthly income or the premium rate, the increase will be directly reflected on the billing statement."},{"question":"Will National Pension premiums also increase for people with a monthly income of 6.37 million won or less?","answer":"Even if your monthly income is below the cap and you are not directly affected by the cap adjustment, your premiums will increase if the premium rate rises from 9% to 9.5%. If your monthly reference income remains the same, your total premiums will increase by 0.5 percentage points of your monthly reference income."},{"question":"If National Pension premiums go up, will the pension I receive later also increase by the same percentage?","answer":"The increase is not necessarily proportional. The amount of the old-age pension is calculated based on a combination of factors, including the individual’s period of enrollment, average lifetime earnings, the average earnings of all enrollees, and the system’s income replacement rate. However, increases in the standard monthly income and the income replacement rate tend to raise future pension benefits."},{"question":"What does an income replacement rate of 43% mean?","answer":"An income replacement rate of 43% generally means that the system is designed so that, for an average-income earner who has been enrolled in the National Pension System for 40 years, the retirement pension amount will be approximately 43% of their average lifetime income. An individual’s actual pension amount varies depending on their enrollment period and income history."}],"sources":[{"url":"https://www.nps.or.kr/","title":"National Pension Service","type":"source"},{"url":"https://www.mohw.go.kr/","title":"Ministry of Health and Welfare","type":"source"},{"url":"https://www.law.go.kr/","title":"National Law Information Center","type":"source"}],"images":[{"id":225,"url":"https://injoys.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsiZGF0YSI6MjIwMSwicHVyIjoiYmxvYl9pZCJ9fQ==--a7c1877880c3ae29783fd8cde6fd83f361d2eb1a/ai-497ca265.webp","is_representative":true,"generation_method":"ai_image","license":"ai_generated","mime_type":"image/webp","translations":{"ko":{"alt":"달력, 보호 방패 속 둥지의 황금알, 증가하는 동전 더미","caption":"달력과 동전 더미가 국민연금 보험료 기준 변화와 부담 증가를 상징합니다.","description":null},"en":{"alt":"Calendar, shield with a nest egg, and rising stacks of coins","caption":"The illustration links a scheduled pension change with higher contribution amounts.","description":null},"ja":{"alt":"カレンダー、巣の金の卵を守る盾、増える硬貨の山","caption":"カレンダーと硬貨の山が年金保険料の基準変更と負担増を表しています。","description":null},"es":{"alt":"Calendario, escudo con huevo de ahorro y pilas de monedas en aumento","caption":"El calendario y las monedas ilustran cambios en la base de cotización y mayores aportes.","description":null},"id":{"alt":"Kalender, perisai dengan telur tabungan, dan tumpukan koin yang meningkat","caption":"Kalender dan tumpukan koin menggambarkan perubahan iuran pensiun dan kenaikan beban.","description":null},"pt":{"alt":"Calendário, escudo com ovo de poupança e pilhas crescentes de moedas","caption":"O calendário e as moedas representam mudanças na base da contribuição e valores maiores.","description":null},"zh-hant":{"alt":"月曆、守護儲蓄金蛋的盾牌與逐漸增加的硬幣堆","caption":"月曆與硬幣堆象徵國民年金保費基準調整與負擔增加。","description":null}}},{"id":226,"url":"https://injoys.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsiZGF0YSI6MjIwNywicHVyIjoiYmxvYl9pZCJ9fQ==--ad3435fb5a93cc6d6aeeb990d6ad5b9da1cc6983/ai-f0a57483.webp","is_representative":false,"generation_method":"ai_image","license":"ai_generated","mime_type":"image/webp","translations":{"ko":{"alt":"동전 길이 개인과 회사에서 노부부의 둥지로 이어지고 상승 화살표가 있는 연금 일러스트","caption":"개인과 사업장의 보험료가 노후 대비로 이어지는 과정을 상징적으로 보여준다.","description":null},"en":{"alt":"Coins form paths from a person and office building to an elderly couple in a nest, with upward arrows","caption":"The illustration symbolizes pension contributions building toward retirement security.","description":null},"ja":{"alt":"硬貨の道が個人と会社から巣の中の高齢夫婦へ続き、上向き矢印が並ぶ年金イラスト","caption":"年金保険料の積み立てが老後の安心につながる様子を表している。","description":null},"es":{"alt":"Monedas forman caminos desde una persona y un edificio hacia una pareja mayor en un nido, con flechas al alza","caption":"La ilustración simboliza aportes de pensión que crecen hacia la seguridad en la jubilación.","description":null},"id":{"alt":"Jalur koin dari orang dan gedung kantor menuju pasangan lansia di sarang, dengan panah naik","caption":"Ilustrasi ini melambangkan iuran pensiun yang terkumpul untuk keamanan masa tua.","description":null},"pt":{"alt":"Moedas formam caminhos de uma pessoa e de um prédio até um casal idoso em um ninho, com setas para cima","caption":"A ilustração simboliza contribuições previdenciárias acumuladas para a segurança na aposentadoria.","description":null},"zh-hant":{"alt":"硬幣道路從個人與辦公大樓通往坐在巢中的老年夫婦，旁有向上箭頭","caption":"插圖象徵退休金繳費累積，通往退休保障。","description":null}}}],"published_at":"2026-07-19T14:40:17+09:00","updated_at":"2026-07-19T14:40:17+09:00","license":"cc_by","translation_status":"reviewed","available_locales":["ko","en","ja","es"],"data_locales":["ko","en","ja","es","id","pt","zh-hant"],"url":"https://injoys.com/en/articles/national-pension-premium-july-income-ceiling-floor-rate"}