Starting July 1st, 2024, the Korean National Pension Service will implement changes to the salary limit amounts used for calculating pension contributions. This update reflects a 4.53% increase from the previous adjustment in July 2023.
The new upper limit for the monthly salary amount will be 6,170,000 KRW, with both the employee and employer contributing 277,550 KRW each. On the lower end, the monthly salary amount will be set at 390,000 KRW, with both parties contributing 17,550 KRW each. The National Pension contribution rate remains at 9% of the salary, equally split between the employee and employer.
These changes will impact various employment-related services, including Payroll Services, Hybrid Payroll, Employer of Record (EOR), and Professional Employer Organization (PEO). Employers and employees should take note of these updates to ensure accurate pension contributions and compliance with Korean labor regulations.
