Recipients of the National Pension and Basic Pension will see a 2.1% increase in their monthly benefits starting this year.

The Ministry of Health and Welfare announced on Friday that the first National Pension Deliberation Committee of 2026 was held at the National Pension Service’s Gangnam office. During the meeting, officials finalized the hike in benefit amounts and adjusted the upper and lower limits of the "Standard Monthly Income" for 2026.

Adjusting for Inflation and Real Value
In accordance with the policy of preserving the real value of pensions, the committee raised the basic pension and family allowances by 2.1%, reflecting the consumer price inflation rate from the previous year.

As a result, approximately 7.52 million National Pension recipients will receive the adjusted payments starting this month.

The committee also determined the "Revaluation Rate," which is used to calculate the benefits for new retirees. This rate converts a subscriber's past earnings into current values. For instance:

Example: If a worker earned 1 million KRW in 1988, the newly set revaluation rate of 8.528 would be applied, valuing that income at approximately 8.53 million KRW in 2025 terms.
 
Changes to Income Ceilings and Floors
The thresholds for the "Standard Monthly Income," which serve as the basis for calculating both insurance premiums and final pension amounts, have also been adjusted to reflect the 3.4% growth in the average income of all subscribers over the last three years.

These changes are expected to affect roughly 14% of all National Pension subscribers. Additionally, the committee extended the "Special Determination System" for three more years, allowing workers with significant income fluctuations to adjust their insurance premiums mid-year.

 
Basic Pension Increases for Seniors
The Basic Pension for senior citizens will also see a 2.1% boost.

Monthly Amount: Rising from 342,510 KRW to 349,700 KRW.
Beneficiaries: Approximately 7.79 million seniors will receive the increased amount starting in January.
Implementation Timeline
January 2026: Increased payouts for National and Basic Pensions and new Revaluation Rates take effect.
July 2026: Adjusted Standard Monthly Income (Upper/Lower limits) goes into effect.
The Ministry of Health and Welfare plans to finalize the necessary administrative notifications within this month to ensure the seamless distribution of benefits.

[Copyright (c) Global Economic Times. All Rights Reserved.]