2025 year-end settlement of national health insurance performed in April 2026 and installment payment option available

l 2025 year-end settlement of national health insurance performed in April 2026 and installment payment option available

The national health insurances (NHI) are withheld from employees’ salaries based on the amount stated in the government assessment notice from April of each year to March of the following year based on the annual salary reported to the government agency in the prior year. In April of the following year after each year end, the social agency then performs year-end settlement of NHI based on the actual gross salaries paid during the year and assesses additionally any underpaid NIH (for employee and employer portions in total) as a result of such year-end settlement in April of the following year. The employer is required to withhold additionally any underpaid NHI from employees’ salaries through April payroll and remit the total additional NNI premium (both employee and employer portions) by payment due date of May 10 of the following year.

Under Article 74 of the National Health Insurance Act and Article 39 of the Enforcement Decree of the same Act, if additional NHI premiums are assessed due to a change in an employee’s remuneration from the previous year and the additional amount is equal to or exceeds the monthly insurance premium for the relevant month, installment payment of up to 12 times is permitted to ease the payment burden. As such, when additional NHI premiums resulting from 2025 year-end settlement exceed the monthly NHI premiums for the current month, the employee can utilize the option of installment payment up to 12 months.