National Pension, Max Contribution Ceilings Increased Effective from July 1, 2019

l National Pension, Max Contribution Ceilings Increased Effective from July 1, 2019

Effective from July 1, 2019, the monthly max contribution ceiling of the statutory national pension was increased from KRW 210,600 to KRW 218,700 each for employer and employee (Ministry of Health and Welfare (MOHW) announcement, April 1, 2019).

The statutory social insurance premium rates in effect in 2019 can be summarized as below.

Social Insurances:	Employee portion	Employer portion	Total	Remark
National Pension (NP)	4.5%	4.5%	9.0%	Won 218,700 of monthly contribution ceiling each
National Health Insurance (NHI) a. Health Insurance (HI) b. Long-term Care Insurance for the Elderly (LTCI) (Note a)	3.23% 8.51%	3.23% 8.51%	6.46% 17.02%	Won 3,182,760 of monthly contribution ceiling each Assessed at 8.51% of HI premium above
Employment Insurance (EI)	0.65%	0.9% ~1.5%	1.55% ~2.15%	Vary depending on the number of employees
Industrial Accident Compensation Insurance (IACI) (Note b)	NIL	0.6%~ 22.50%	0.6%~ 22.50%	Vary depending on type of business

(NOTE)

a. LTCI contribution is imposed based on the medical insurance premium (while NP, HI, EI, and IACI contributions are imposed based on monthly wage income reported in the prior year).

b. Wage bond surcharge and asbestos victim relief surcharge of 0.6/1,000 and 0.03/1,000 should be added to IACI rates additionally. Commute related injury surcharge is also assessed additionally at 1.5/1,000 regardless the business type starting from January 1, 2018.