Starting in January 2027, South Korea's National Pension contribution rate will increase from 9.5% to 10%. Because employees and employers share contributions equally, the employee contribution rate will rise from 4.75% to 5%. Employees with a standard monthly income of KRW 3 million will pay an additional KRW 7,500 per month, while those earning KRW 4 million and KRW 5 million will pay an additional KRW 10,000 and KRW 12,500, respectively.
This change represents a 0.5-percentage-point increase in the overall National Pension contribution rate. The rate paid by individual employees will increase by 0.25 percentage points. Assuming the monthly income remains unchanged and all other conditions stay the same, the additional annual contributions will be KRW 90,000, KRW 120,000, and KRW 150,000, respectively.
How Much More Will You Pay Into the National Pension in 2027?
In 2027, the overall National Pension contribution rate will be 10%, with employees and employers each paying 5%. In 2026, the overall rate was 9.5%, with each party contributing 4.75%.
The amount deducted from employees' salaries for National Pension contributions will therefore change as follows.
| Standard Monthly Income | Employee Contribution in 2026 | Employee Contribution in 2027 | Monthly Increase | Annual Increase |
|---|---|---|---|---|
| KRW 2 million | KRW 95,000 | KRW 100,000 | KRW 5,000 | KRW 60,000 |
| KRW 3 million | KRW 142,500 | KRW 150,000 | KRW 7,500 | KRW 90,000 |
| KRW 4 million | KRW 190,000 | KRW 200,000 | KRW 10,000 | KRW 120,000 |
| KRW 5 million | KRW 237,500 | KRW 250,000 | KRW 12,500 | KRW 150,000 |
Author's calculations. These figures assume that the standard monthly income is equal to actual monthly salary and remains unchanged for all 12 months.
For an employee with a standard monthly income of KRW 3 million, the 2026 contribution is 4.75% of KRW 3 million, or KRW 142,500. In 2027, the rate will become 5%, increasing the contribution to KRW 150,000. This means an additional KRW 7,500 will be deducted each month.
Employees with a standard monthly income of KRW 4 million will pay an additional KRW 10,000 per month, while those with a standard monthly income of KRW 5 million will pay an additional KRW 12,500.
These figures compare National Pension contributions only. Changes in actual take-home pay, including deductions for National Health Insurance, long-term care insurance, employment insurance, and income tax, must be calculated separately.
How Will the Equal Contribution Arrangement Between Employees and Employers Change?
In 2027, employees covered by workplace-based National Pension insurance will continue to share contributions equally with their employers. The increase does not mean that employees will personally pay the entire 10% contribution rate.
For example, consider an employee with a standard monthly income of KRW 3 million:
2026 employee contribution: KRW 142,500
2026 employer contribution: KRW 142,500
2027 employee contribution: KRW 150,000
2027 employer contribution: KRW 150,000
Employers will also pay an additional KRW 7,500 per employee each month.
For businesses, the increase in labor costs will depend on the number of employees. If a company employs 10 people, each with a standard monthly income of KRW 3 million, the employer's additional National Pension contributions will amount to KRW 75,000 per month, or KRW 900,000 per year.
This calculation covers only the employer's additional National Pension contributions and excludes other changes in labor costs.
Regional subscribers are treated differently from workplace-based subscribers. Because there is no employer sharing the contribution, regional subscribers generally pay the entire contribution themselves.
For the same standard monthly income of KRW 3 million, a regional subscriber will pay KRW 300,000 per month in 2027. This differs from the KRW 150,000 paid by an employee covered through a workplace.
Why Is Your Salary Different From the Income Used to Calculate National Pension Contributions?
The actual monthly salary shown on a payslip does not necessarily match the standard monthly income used to calculate National Pension contributions.
Standard monthly income is the monthly income reported to and determined by the National Pension Service for contribution calculations. For workplace-based subscribers, contributions are calculated using the income reported when they joined the workplace or the income subsequently determined through periodic adjustments.
For existing subscribers in particular, the standard monthly income is recalculated based on the previous year's income and generally applies from July through June of the following year.
Therefore, even if your salary in January 2027 is KRW 4 million, your standard monthly income for National Pension purposes is not necessarily KRW 4 million.
This is because the applicable standard monthly income may vary depending on changes in previous-year earnings and the composition of income, including performance bonuses and allowances.
To determine your actual contribution more accurately, check the National Pension deduction on your payslip and then confirm your standard monthly income. This is more reliable than calculating your contribution using your monthly salary alone.
Check the Minimum and Maximum Standard Monthly Income Limits
South Korea's National Pension Scheme does not impose contributions on unlimited income. The standard monthly income used for contribution calculations is subject to minimum and maximum thresholds.
The following limits apply from July 1, 2026, through June 30, 2027.
| Category | Standard Monthly Income |
|---|---|
| Minimum | KRW 410,000 |
| Maximum | KRW 6,590,000 |
Even if your monthly income exceeds KRW 6.59 million, National Pension contributions during this period are calculated using a maximum standard monthly income of KRW 6.59 million.
For example, if your monthly income is KRW 7 million, the contribution calculation uses the maximum threshold of KRW 6.59 million rather than the full KRW 7 million.
Applying this maximum threshold from January through June 2027, an employee's contribution will be calculated as follows:
2026: KRW 6.59 million × 4.75% = KRW 313,025
2027: KRW 6.59 million × 5% = KRW 329,500
Monthly increase: KRW 16,475
This example uses the minimum and maximum thresholds applicable from July 2026 through June 2027. From July 2027 onward, subscribers will need to check the newly determined minimum and maximum standard monthly income limits.
How High Will the National Pension Contribution Rate Rise After 2027?
The scheduled contribution rate increases will continue after the 10% rate takes effect in 2027. Under South Korea's National Pension reform, the overall contribution rate is scheduled to increase by 0.5 percentage points annually from 2026, reaching 13% in 2033.
| Year | Overall Contribution Rate | Employee Contribution Rate | Employer Contribution Rate |
|---|---|---|---|
| 2025 | 9.0% | 4.5% | 4.5% |
| 2026 | 9.5% | 4.75% | 4.75% |
| 2027 | 10.0% | 5.0% | 5.0% |
| 2028 | 10.5% | 5.25% | 5.25% |
| 2029 | 11.0% | 5.5% | 5.5% |
| 2030 | 11.5% | 5.75% | 5.75% |
| 2031 | 12.0% | 6.0% | 6.0% |
| 2032 | 12.5% | 6.25% | 6.25% |
| 2033 | 13.0% | 6.5% | 6.5% |
Looking only at the 2027 change, the employee contribution rate will be 5%. By 2033, however, it is scheduled to reach 6.5%.
This schedule represents the planned gradual increase in the overall contribution rate. The actual amount each individual pays will depend on their standard monthly income and subscriber category at the relevant time.
Where Can You Check Your National Pension Contribution Deduction?
To confirm your exact contribution, it is helpful to review both your payslip and your National Pension enrollment records.
Follow these steps:
1. Check the National Pension deduction on your most recent payslip.
2. Confirm your standard monthly income and subscriber category through the National Pension Service of Korea.
3. Calculate your estimated 2027 deduction using the 5% employee contribution rate.
4. Check when your workplace will apply any changes to your standard monthly income.
National Pension contributions are calculated by multiplying the standard monthly income by the contribution rate for the relevant year. For workplace-based subscribers, the employee pays half of the total calculated contribution.
You can also review examples using the 2026 contribution rate of 9.5% and the eligibility conditions for National Pension contribution support available to regional subscribers.
Frequently Asked Questions
How Much More Will an Employee Earning KRW 3 Million Per Month Pay Starting in January 2027?
If the standard monthly income is KRW 3 million, the employee contribution will increase from KRW 142,500 to KRW 150,000 per month. This represents an additional KRW 7,500 each month, or KRW 90,000 over one year.
Will KRW 250,000 Be Deducted From the National Pension for Someone Earning KRW 5 Million Per Month?
An employee covered by workplace-based National Pension insurance with a standard monthly income of KRW 5 million will pay KRW 250,000 per month in 2027, based on the 5% employee contribution rate. The employee pays half of the total KRW 500,000 contribution.
Will Self-Employed People Also Be Subject to the 10% National Pension Contribution Rate in 2027?
Yes. Regional subscribers will also be subject to the overall 10% contribution rate in 2027. However, unlike workplace-based subscribers, they do not have an employer sharing the contribution, so they generally pay the entire amount themselves. Those who meet certain eligibility requirements may qualify for contribution support.
Will the National Pension Contribution Increase End After 2027?
No. The contribution rate is scheduled to increase by 0.5 percentage points every year starting in 2026, with the overall rate expected to reach 13% in 2033.
Note: This article provides general information for understanding market trends and is not an investment recommendation concerning any specific security or asset. All final decisions and investment responsibility rest with the individual.
