From January 2024, both National Pension and Basic Pension benefits in South Korea have increased by 2.1%. This adjustment reflects the previous year\’s consumer price inflation, ensuring that pensioners receive higher payments. On January 9, the Ministry of Health and Welfare held the first National Pension Review Committee meeting for 2026 at the National Pension Service Gangnam office, approving the pension increase, income ceiling adjustments, and extension of special provisions. These measures aim to stabilize the livelihoods of pensioners and respond to inflationary pressures.
The basic and dependent family pension amounts have risen by 2.1%, benefiting approximately 7.52 million National Pension recipients from January. The income ceiling for pension calculations will be raised from KRW 6.37 million to KRW 6.59 million, and the floor from KRW 400,000 to KRW 410,000, effective from July. The Basic Pension standard amount also increased by 2.1%, from KRW 342,510 to KRW 349,700 per month, supporting about 7.79 million elderly recipients. The revaluation rate, used to adjust past income to present value, stands at 8.528 for 1988, meaning KRW 1 million earned then is now valued at approximately KRW 8.528 million for pension calculation.
The Review Committee also set the revaluation rate for new National Pension recipients in 2026. This index, adjusted annually by law, ensures fair pension calculations based on historical income. While the average income of all contributors rose by 3.4% over the past three years, about 86% of members fall outside the affected income brackets, limiting the direct impact of the ceiling adjustment. The special provision allowing workplace members with income changes over 20% to pay premiums based on actual income is extended for three years, helping those with fluctuating earnings.
The Ministry of Health and Welfare plans to sequentially revise related notifications to reflect these decisions. Enhanced guidance will help pensioners and contributors understand the changes, with the Basic Pension standard amount update scheduled for January. These adjustments are expected to strengthen the pension system\’s sustainability and protect beneficiaries against inflation. Ongoing policy developments and further improvements are anticipated, making it essential for recipients and contributors to stay informed.