National pension contribution rate rises from 9.5% to 10% — effective 1 January 2027 | employee share 4.75% → 5%
The national pension contribution rate rises from 9.5% to 10% on 1 January 2027. Employees pay half, 5%, and the employer pays 5%; self-employed and other regional members pay the full 10%. It is the second step of a ladder that climbs 0.5 percentage points a year from 2026 to reach 13% in 2033.
Conditions used in the video
- Effective date
- 2027-01-01
- Basis
- National Pension Act Article 88 · Addenda Article 4 of the amendment promulgated 2025-04-02 (yearly rate table)
- 2026 rate
- 9.5% (employee share 4.75%)
- 2027 rate
- 10% (employee share 5%)
- Final rate
- 13% in 2033
- Example
- ₩3M monthly wage · upper limit not applied
Results
- Employee share in 2026 (₩3M)
- ₩142,500
- Employee share in 2027 (₩3M)
- ₩150,000
- Difference
- ₩7,500 a month
- Each year
- +0.5 percentage points (2026 to 2033)
- Regional members
- the full 10% is the member's own
- Income replacement rate
- 43% (already applies from 2026-01-01)
Why it works this way
The national pension contribution rate today is 9.5%. Employees pay half, 4.75%, and the employer pays the other 4.75%. Regional members pay all 9.5% themselves. The rate had stayed at 9% for 27 years until the April 2025 amendment set it climbing from 2026.
Addenda Article 4 of the National Pension Act amendment promulgated 2025-04-02.
- 20269.5% (employee 4.75%)
- 202710% (employee 5%)
- 203313% (employee 6.5%)
2027 is the second step. It continues with 10.5% in 2028 and 11% in 2029.
For an employee earning ₩3M a month, the employee share rises from ₩142,500 to ₩150,000, ₩7,500 more a month. The employer's share rises by the same amount to ₩150,000. Wages above the upper limit on the standard monthly income are charged only up to the limit, so high earners differ from this simple multiplication.
A simple multiplication. The upper limit on the standard monthly income is set by notice and is not applied here.
- 2026₩3M × 4.75% = ₩142,500
- 2027₩3M × 5% = ₩150,000
- Difference₩7,500 a month · ₩90,000 a year
A regional member pays the full amount, so the rise is from ₩285,000 to ₩300,000, ₩15,000 more.
The 43% income replacement rate has applied since 1 January 2026. Only the contribution rate climbs each year. This table is why the national pension line on the payslip grows a little every January.
This video and page describe a measure that has been promulgated but has not taken effect. Details may change through a decree or notice.
In short, from 1 January 2027 the national pension contribution rate is 10% and an employee pays 5% of wages. The ladder continues to 13% in 2033.
The legal basis
Drawn from government announcements and the statutes themselves as primary sources, covering only the relevant part.
National Pension Act Article 88(3) to (4) (Imposition and collection of contributions)
In force Current (checked 2026-09-05)
For workplace members, the member pays the employee contribution and the employer pays the employer contribution. Regional and voluntary members pay their own contributions.
What this means
An employee pays only half of the rate; a regional member pays all of it. The same 10% takes 5% or 10% out of your own pocket depending on which you are.
Addenda Article 4 of the National Pension Act amendment promulgated 2025-04-02 (yearly contribution rates)
In force 2027-01-01 (the 2027 rate)
95/1000 in 2026, 100/1000 in 2027, then 5/1000 more each year to 130/1000 in 2033. Workplace members' employee and employer contributions are half each.
What this means
The rate does not jump once; it is an eight-year ladder. From the January 2027 payslip, 5% is your share.
Run it on your own numbers
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Frequently asked
Does the employer's share rise too?
Yes. Workplace members split the contribution with the employer, so the employer's share also rises from 4.75% to 5%. At ₩3M a month the employer pays ₩150,000 as well.
How much more do regional members pay?
Regional members bear the whole rate, so it rises from 9.5% to 10%. At a standard monthly income of ₩3M that is ₩285,000 to ₩300,000.
How long until 13%?
From 9.5% in 2026 the rate climbs 0.5 percentage points a year to reach 13% in 2033, an eight-year ladder.
Does the income replacement rate change as well?
No. The 43% replacement rate has applied since 1 January 2026. The only change in 2027 is the contribution rate.
Results are estimates based on the inputs and on the rules as at the stated date. They may differ from a lender's actual assessment, and the rules change often. Take professional advice before any decision that matters.