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Pension to increase by 3,520 won per month in average

Posted March. 04, 2017 06:57,   

Updated March. 04, 2017 07:17


A 65-year-old pensioner who receives maximum pension at 1,937,220 won a month will be entitled to an extra 19,370 won, or a total of Korea 1,956,590 won, starting next month. The rise came as a 1 percent increase reflecting last year's price level.

The Ministry of Health and Welfare pre-announced the legislative revision of "Reappraisal Rate of National Pension and Adjustments in Annuity" on Friday. Under the revision, entire pensioners receiving an average of 352,590 won a month will be receiving 3,520 won per month in average. In addition, those who joined the annuity over 20 years will be receiving an average of 893,050 won, up by 8,840 won.

Family allowance paid for each dependent will also rise by 1 percent. When living with spouse, pension will rise by 2,490 won to 252,090 won per year. Furthermore, the pension rises higher by 1,660 won to 168,020 won per year when the pension holder supports under-aged children or parents over 60 years old.

As the basis for pension premium and annuity, standard monthly income cap will be adjusted from 4.34 million won to 4.49 million won (maximum) and from 280,000 won to 290,000 won (minimum). This means that pensioners earning less than 290,000 won will be paying 26,100 won in premium. In addition, those who earn more than 4.49 million won a month will be paying a maximum of 404,100 won in premium.

Ho-Kyeong Kim kimhk@donga.com