Detailed introduction to South Korea’s immigration pension system

1. Overview

Insurance premiums are paid to prevent the inability to engage in livelihood due to old age or unexpected disability and death. In old age, In the event of disability or death, the state implements a social security system that pays an annuity to the individual or his or her surviving family members to contribute to a stable life.

2. Participating objects

Since 1988, the National Pension System has been implemented for the first time for employers and employees of units with more than ten employees and has gradually expanded its scope of application. Currently, all ten Everyone between the ages of eight and sixty should join the National Pension.

In addition, foreigners aged 18 to 60 who have Korean identity and live in South Korea are eligible to join the National Pension, just like Koreans.

2. Annuity rate

It is calculated by multiplying the standard monthly income amount determined by the declaration or periodic decision when obtaining membership qualifications by the insurance rate.

What is the standard monthly income?

The standard monthly income refers to the amount of less than 1,000 won deducted from the monthly income reported by the subscriber in order to calculate the National Pension premium and salary. After the amount, the prescribed minimum amount ranges from 230,000 won to 3.68 million won.

Payment deadline

The deadline for paying annuity insurance premiums is the tenth day of the month following the month.

Late payment penalty

If the annuity insurance premium is not paid within the payment period, a late payment penalty equivalent to 3-9 of the annuity insurance premium will be added based on the late payment period.

3. Receipt Standards

The pension receipt standards will vary according to the years of payment, age at the time of receipt, etc. Next, I will sort out the two payment standards commonly used by people with Korean identity.

1. Reduced Old Age Pension

If a person who joins for a period of more than ten years but not more than twenty years does not engage in gainful employment after the age of sixty, a certain rate will be paid based on the period of joining. Basic, lifetime payment plus annual family support amount added to the annual amount.

lt; Reduced old-age pension salary levels for each joining periodgt;

50% of the 10-year basic annual amount and the annual family-supporting amount

11-year basic annual amount 55% of the annual amount to support a family

..

95% of the basic annual amount for 19 years. 100% of the basic annual amount for 20 years to support a family. Annual amount

2. Early-age old-age pension

For those who have been enrolled for more than ten years and do not engage in gainful employment after reaching the age of fifty-five, if they apply personally, even if they are under sixty years old, Annuity available.

lt; Early-age pension salary levels for each starting age;

70% of the basic annual amount for 55-year-olds and the annual amount for supporting a family

56-year-old basic annual amount 76% of the annual amount to support a family

82% of the basic annual amount for a 57-year-old to support a family

88% of the basic annual amount for a 58-year-old to support a family

The basic annual amount for a 59-year-old is 94% of the annual amount for raising a family

South Korea’s pension system covers all adult citizens, is more universal and social, and is more in line with the basic requirements of social security. South Korea is the 131st country in the world to implement a national pension system. By 2000, the nominal coverage rate of South Korea’s national pension reached 76.