National Pension Reduction Threshold Raised; Seniors Earning Under ₩5.19 Million Monthly to Receive Full Benefits

Starting June 17, seniors earning less than 5.19 million won per month will be able to receive their full National Pension benefits without reduction.

This revision increases the new reduction threshold to approximately 5.19 million won, compared to the previous system where pensions could be reduced by up to half if monthly income exceeded the average income of all National Pension subscribers (A-value).

The National Pension Service is proactively applying the revised standards retroactively to income earned from January 1 of this year, prior to the official implementation date of June 17. Refunds will be processed for beneficiaries whose pensions were reduced due to income below 5.09 million won in 2025.

Pension payments will be blocked for heirs who have forfeited their inheritance rights by failing to fulfill their duty of care or by committing crimes. In accordance with Article 1004-2 of the Civil Code, heirs who have lost their inheritance rights due to criminal acts will be barred from receiving survivor pensions, unpaid benefits, lump-sum refunds, and lump-sum death payments. If it is later confirmed that pensions were received, the full amount paid, including accrued interest, will be recovered.

The government is reviewing the complete abolition of the reduction system for high-income brackets, taking into account the financial situation and equity with other occupational pension schemes.