Next year's 'standard median income' is set to rise by 6.51% to 6,494,738 won for a household of four. The standard median income serves as a benchmark for various welfare benefits provided by the state, including living allowances, medical benefits, housing benefits, and education benefits. The government announces this annually following discussions at the Central Livelihood Security Committee.
On the 31st, the Ministry of Health and Welfare held the 77th Central Livelihood Security Committee meeting and decided to raise the standard median income for 2026 for a household of four to 6,494,738 won, a 6.51% increase from this year's 6,097,773 won.
This is the largest increase on record. The increase in the standard median income (for a household of four) has been as follows: ▲2022: 5.02% ▲2023: 5.47% ▲2024: 6.09% ▲2025: 6.42%, marking a five-year streak of record highs.
In particular, under the 1-person household standard, which accounts for 74% of basic livelihood guarantee recipients, the standard median income is set to rise by 7.20% to 2,564,238 won compared to this year's 2,392,013 won. The 2-person household, which makes up 16% of basic livelihood guarantee recipients, will see the standard median income increase to 4,199,292 won, up 6.78% from this year's 3,932,658 won.
The selection criteria for beneficiaries for each allowance remain the same as this year. That is, the living allowance is given to households with an income below 32% of the standard median income, medical benefits below 40%, housing benefits below 48%, and education benefits below 50%.
As a result of raising the standard median income for next year, approximately 40,000 people will be able to newly receive the living allowance. The living allowance will increase from 1,951,287 won for a household of four this year to 2,078,316 won next year. For a 1-person household, it will rise from 765,444 won this year to 820,556 won next year. The living allowance is intended to provide the minimum necessary for living.
The government is also pushing for improvements to the living allowance system. To create conditions for young people to work and become self-sufficient, it has decided to expand the additional deduction for labor and business income from those under 29 years old to those under 34. The additional deduction amount will also increase from 400,000 won to 600,000 won.
In addition, the criteria for converting the value of owned cars into monthly income will be relaxed. Generally, the car value is converted to 100% of monthly income, but in some exceptional cases, a conversion rate of 4.17% is applied to recognize it as a lower income. The cases that apply to certain vehicle types, below specific displacement and vehicle values, and to households with three or more children will be expanded.
Medical benefits will continue as before, covering all medical expenses for benefit items excluding the 'out-of-pocket amount' borne by beneficiaries. Outpatient visits exceeding 365 per year will apply a 30% co-payment rate. Additionally, the criteria for 'support costs' considered as living expenses provided by guardians to beneficiaries will be eased to expand the pool of beneficiaries. Also, the co-payment rate for long-acting antipsychotic injections will be lowered from 5% to 2% to enhance the treatment effectiveness for mental disorders.
Housing benefits will be increased between 17,000 and 39,000 won (4.7% to 11%) according to the severity and number of household members as the maximum limit for the allowance for tenant households compared to this year. Education benefits are set to increase on average by 6% from this year, including annual support amounts of ▲500,200 won for elementary school ▲699,000 won for middle school ▲860,000 won for high school.
Minister Jeong Eun-kyeong noted, "To build a South Korea where everyone lives well together, the basic livelihood guarantee system is more important than anything else," stating, "The government will continue to support the lives of the poor and ensure that all citizens can live with peace of mind and happiness, regardless of the circumstances they face."