Korea’s change to the rate-setting month for pension back payments
See why the cost of back payments can differ when the application and deadline fall in different months.
Updated Nov 7, 2026
A change to the month that sets the rate
The National Pension Act amendment effective 2025-11-25 changed the rate-setting month for back payments from the application month to the month containing the payment deadline. Covered monthly earnings are still based on the application month.
When a year-end application meets next year’s rate
In the NPS example, applying in December (12) 2025 for 50 months of back payments on KRW 1,000,000 in covered monthly earnings and paying in January (1) 2026 yields KRW 4,750,000 at 9.5% under the amendment, versus KRW 4,500,000 at the former 9% rate. The same coverage can cost different amounts depending on which month sets the rate.
Check individual eligibility and special provisions
This example uses the NPS’s lump-sum payment in the following year. The act contains a special provision for certain December (12) applications paid in that same month. Eligible months, payment deadlines and installment costs require individual checks.
Sources
- National Pension Service | Amendment to the back-payment calculationAccessed Nov 7, 2026
- Korean Law Information Center | National Pension Act amendment and addendumAccessed Nov 7, 2026