National Pension, Max Contribution Ceilings Increased Effective from July 1, 2021

l National Pension, Max Contribution Ceilings Increased Effective from July 1, 2021

Effective from July 1, 2021, the monthly max contribution ceiling of the statutory national pension will increase from KRW 226,350 to KRW 235,800 each for employer and employee (Ministry of Health and Welfare (MOHW) announcement, March 30, 2021).

The statutory social insurance premium rates in effect from July 2021 can be summarized as below.

Social Insurances:	Employee portion	Employer portion	Total	Remark
National Pension (NP)	4.5%	4.5%	9.0%	Won 235,800 of monthly contribution ceiling each
National Health Insurance (NHI) a. Health Insurance (HI) b. Long-term Care Insurance for the Elderly (LTCI) (Note a)	3.43% 11.52%	3.43% 11.52%	6.86% 23.04%	Won 3,523,950 of monthly contribution ceiling each Assessed at 11.52% of HI premium above
Employment Insurance (EI)	0.8%	1.05% ~1.65%	1.85% ~2.45%	Vary depending on the number of employees
Industrial Accident Compensation Insurance (IACI) (Note b)	NIL	0.60%~ 18.50%	0.60%~ 18.50%	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 1.3/1,000 regardless of the business type starting from January 1, 2020.