Pensions Will Face Fewer Cuts for Workers

Why this is here: Roughly 137,000 pensioners in South Korea lost a total of 242.9 billion won in benefits last year because their income affected their pension payments.

South Korea’s Ministry of Health and Welfare and the National Pension Service will ease pension reduction rules starting June 17th. The revised law allows those receiving old-age pensions to earn up to roughly 519만원 per month without a reduction in benefits.

Previously, pensioners saw their benefits cut by as much as half for up to five years if their income exceeded 319만원—the average monthly income of all national pension subscribers. In 2024 alone, about 137,000 pensioners lost a combined 242.9 billion won in benefits due to this rule.

The new law adds a 200만원 deduction to the income threshold. The National Pension Service already began applying the revised criteria to income earned since January 1st.

Pensioners who experienced reductions due to last year’s income may receive refunds after a settlement process, though timing will vary. The government anticipates an additional 535.6 billion won in funding over the next five years, but believes the change is necessary to support continued employment among seniors.