(Health Korea News / Yoo Ji-in) Starting this January, recipients of the national pension and basic pension are scheduled to receive a 2.3% increase in benefits. The Ministry of Health and Welfare held the first National Pension Deliberation Committee in 2025 and decided to increase the national pension amount and adjust the upper and lower limits of the standard monthly income amount to be applied in 2025.
It was decided to increase the basic national pension amount and dependent pension amount in 2025 to reflect the previous year’s inflation rate (2.3%, announced by Statistics Korea). Approximately 6.92 million beneficiaries (as of September 2024) currently receiving national pension will receive a 2.3% increase in pension amount from January.
In addition, the ‘re-evaluation rate’ required to calculate the benefit amount of new national pension recipients in 2025 was determined. The ‘revaluation rate’ is an index that converts the income of the beneficiary during the past subscription period into the present value as of the time of pension receipt, and is readjusted and announced by the Minister of Health and Welfare every year after deliberation by the committee in accordance with relevant laws and regulations.
The ‘reassessment rate’ by year is calculated by dividing the A value of the year prior to the start of supply by the A value of the past reassessment year. For example, the revaluation rate in 1988 is 8.249. If the income in 1988 was 1 million won, it is multiplied by 8.249 and revalued to the present value in 2024 to calculate the pension amount in 2025 based on 8.249 million won.
The committee also adjusted and resolved the upper and lower limits of the standard monthly income for 2025. The standard monthly income is the income used to calculate pension insurance premiums and pension amounts, and is adjusted annually according to the subscriber’s income level. The upper and lower limits of the standard monthly income are also automatically adjusted every year to reflect the rate of change in the average income (A value) of all national pension subscribers over the past three years.
As the average income (A value) of all subscribers over the past three years has increased by 3.3% compared to 2024, the upper limit of the standard monthly income in 2025 is from 6.17 million won to 6.37 million won, and the lower limit is from 390,000 won to 400,000 won, respectively. changes.
The Ministry of Health and Welfare revised the ‘National Pension Revaluation Rate and Pension Amount Adjustment’ notice and the ‘National Pension Standard Monthly Income Lower and Upper Limits’ notice to reflect the committee’s decision. The reassessment rate and pension amount increase will be applied starting from pensions paid in January, and the adjustment of the upper and lower standard monthly income amounts will be applied from July.
The basic pension amount also reflects the previous year’s consumer price inflation rate of 2.3% in accordance with the Basic Pension Act, increasing from 334,810 won in 2024 to 342,510 won in 2025. Approximately 7.36 million seniors who receive basic pension this year will receive an increased basic pension amount starting in January. The Ministry of Health and Welfare plans to revise the related notice in January to increase the basic pension amount.
◆Basic pension standard pension amount
|
division(furniture) |
2024year |
2025year |
amount increased(growth rate) |
|
old man alone |
33only 4810one |
34only 2510one |
7700one(2.3%) |
|
elderly couple |
53only 5680one |
54only 8000one |
1only 2320one(2.3%) |
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Source: www.hkn24.com
