The national pension amount, currently received by 6.92 million people, will increase by 2.3% from this month compared to the previous year. This is to raise the increase rate in line with inflation to prevent a decrease in real value. For the same reason, the basic pension will also be increased by 2.3%.
The Ministry of Health and Welfare noted that this decision was made during the first National Pension Committee meeting of 2025.
Accordingly, approximately 6.92 million beneficiaries receiving the national pension as of September of last year will receive a 2.3% increased pension amount starting this month.
The increase rate decided by the committee that day reflects the inflation rate (2.3%) announced by the Statistics Korea last year. The government has used the previous year's inflation rate as a benchmark for pension increases every year.
The committee also decided on the 'revaluation rate' necessary to calculate the benefit amount for new national pension beneficiaries in 2025. The revaluation rate is an index that converts the income of beneficiaries during their past national pension contribution period to the present value at the start of benefit payment. For example, if the income was 1 million won in 1988, it is evaluated at the current value by multiplying it by the revaluation rate (8.249) at that time. By this standard, the present value is 8.249 million won.
Such measures are intended to reflect the income earned during the past national pension contribution period as real income evaluated at present value. If an individual, A, earned 1 million won per month for ten years from July 2014 to June 2024 without revaluation, they would receive a pension of about 227,000 won each month, but with revaluation, it would become 242,000 won.
Also, if there are dependents such as a spouse, children, or parents, the family pension that can be added will be increased by 2.3% reflecting the inflation rate. The spouse will receive 300,330 won, an increase of 6,750 won from the previous year, while children and parents will receive 200,160 won, up by 4,500 won.
The basic pension has also been increased by 2.3%. The basic pension is provided to seniors aged 65 and over who are in the bottom 70% of income. A single-person household will receive 342,510 won, an increase of 7,700 won from the previous year, while a couple will receive 548,000 won, up by 12,320 won. As with the national pension, the increased amount will be paid starting from January.
The committee also approved adjustments to the upper and lower limits of the standard monthly income for this year. The standard monthly income is used to calculate pension premiums and amounts and is adjusted annually based on the income level of contributors. With the average income of all contributors increasing by 3.3% compared to the previous year over the past three years, the upper limit will change from 6.17 million won to 6.37 million won, and the lower limit will change from 390,000 won to 400,000 won. This will take effect from July.