The Ministry of Health and Welfare said on the 16th that even if monthly income is 5,193,511 won or more, the National Pension will no longer be reduced. Currently, if a National Pension recipient's income is 3,193,511 won or more per month, part of the National Pension is paid at a reduced amount. The ministry said an amendment to the National Pension Act raising the reduction threshold to 5,193,511 won will take effect.
At present, when a National Pension recipient is working, if income exceeds the average monthly income of all subscribers over three years (3,193,511 won), the National Pension is reduced. The amount reduced increases in proportion to the income amount. For example, if someone earns 4,193,511 won, up to 50,000 won is cut; if they earn 5,193,511 won, 150,000 won is cut.
However, starting on the 17th, the reduction threshold will be raised to 5,193,511 won. The ministry said it would apply the eased reduction threshold to last year's income as well. Accordingly, those whose income was 3.08 million won to 5.08 million won and had their National Pension reduced will receive a refund of that amount. Refunds will proceed automatically from the end of next month without an application.
This improvement plan was a state task of the Lee Jae-myung administration. The ministry said, "Every year, 100,000 beneficiaries are expected to receive the National Pension without reduction."