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Pension Premium Falls for Wage Cut

Pension Premium Falls for Wage Cut

By Bae Ji-sook
Staff Reporter

The government will reduce national pension premiums for people those who have had their wages cut due to the global economic meltdown, the Ministry of Health, Welfare and Family Affairs said Sunday.

The pension premium is 9 percent of monthly income, of which employers pay half. The amount is based on each taxpayer''s income record for the previous year. For example, the premium for 2009 is based on income reported in 2008.

However, the National Pension System will fix the premium based on this year''s income for people having their salaries cut by more than 20 percent due to the economic slowdown or as part of the government''s drive for job sharing.

If a worker had a two million won salary last year but the amount dropped to 1.6 million won this year, the subscriber will have to pay only 72,000 won based on 1.6 million won instead of the original 90,000 won, ministry spokesman Bae Geum-ju said.

bjs@koreatimes.co.kr

Last Modifide Date   :   Mon March 2, 2009
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