Korean Job Discussion Forums

dmbfan · Joined: 09 Mar 2006

Out of curiosity, is National Pension at a fixed rate of 9% or can it differ between 5-9%?

Anyone have the skinny on that?

dmbfan

Big Mac · Joined: 17 Sep 2005

The number has been 4.5 per cent (total 9 per cent) ever since I've been here. The only reason it would change is if the government decided to change the rate. It doesn't vary depending on your salary like the taxes do.

ontheway · Posted: Mon Mar 16, 2009 8:09 am Post subject:

The national pension is NOT a fixed rate of 9% of your salary.

The actual amount you should pay is based on brackets. The midpoint of the bracket is 9%. The employer and the employee each pay half. Your pension amount will vary slightly from 4.5% if your pay level is not at the midpoint. You might have to pay slightly more or slightly less than 4.5%.

Pension is billed to your employer monthly. The amount is fixed based on your reported salary. Subsequent variations in your pay and overtime are not subject to additional withholding for pension because, once set, the monthly amount is fixed.

In fact, if you get a raise during the year, it is very difficult to get the pension office to change your withholding amount. They do not want to change and do not want payments for additional amounts.