National Pension Low-Income Premium Subsidy Threshold Eased to Under 1 Million KRW: Key Changes and Checkpoints

Verified Facts and Reports

According to a report by Maeil Business Newspaper published on 2026-10-16, the National Pension Service announced during the National Assembly Health and Welfare Committee audit that it is pursuing a plan to expand the income threshold for National Pension premium subsidies targeted at low-income locally insured subscribers to under 1 million KRW in monthly income. Based on the report, the current subsidy criteria cover subscribers with a standard monthly income of under 800,000 KRW and a total property tax assessment base of less than 600 million KRW. Furthermore, their annual aggregate income, excluding business and earned income, must be under 16.8 million KRW. When selected as a recipient, the government subsidizes half of the pension premium for up to 12 months per lifetime. Under the current rules, individuals whose reported standard monthly income under the National Pension scheme is 900,000 KRW are excluded from receiving support. The National Pension Service is currently working to reflect this eased support threshold in the government budget proposal for next year.

Donpoong Perspective

Lowering the threshold for National Pension premium subsidies is expected to serve as a meaningful defense against essential living expenses for low-income locally insured subscribers, including small business owners and freelancers. While workplace-based insured subscribers split their premium contributions equally with their employers, locally insured subscribers must pay the entire amount on their own, significantly increasing their financial burden during periods of low earnings. Raising the standard monthly income threshold will likely alleviate premium burdens for subscribers in income brackets that were previously ineligible for support. However, because this policy revision is currently at the stage of a parliamentary audit report and an ongoing initiative to be reflected in next year's government budget proposal, subscribers need to plan their finances carefully while monitoring the exact implementation timeline and final detailed guidelines.

Practical Application and Checkpoints

Locally insured subscribers who wish to receive this subsidy in the future should first check several key criteria. First, applicants must meet not only the income threshold but also the property and aggregate income requirements simultaneously. The existing criteria—maintaining a property tax assessment base under 600 million KRW and an annual aggregate income under 16.8 million KRW—will remain unchanged. Second, subscribers must verify whether they have already utilized the maximum lifetime subsidy duration of 12 months. Those who have already exhausted the full 12-month subsidy period may remain ineligible even if the income threshold is expanded. Third, because this reform remains an initiative intended for inclusion in the upcoming government budget, subscribers should confirm the final effective date and application procedures through their local pension office or official service channels before preparing required documentation.

Sources and Reference Date

• Reference Date: 2026-10-17
• Source: Maeil Business Newspaper (2026-10-16)
• Link: https://www.mk.co.kr/news/economy/12178024