South Korea's government proposes the first hike
in 27 years in the pension contribution rate for both employers and
employees to slow the country's projected pension fund
depletion.
Employer Action Code: Monitor
The Ministry of Health and Welfare (MHW) has published a Pension
Reform Promotion Plan to reform the social security pension system
(National Pension Scheme – NPS), for Parliament's
consideration. The most significant proposal is an increase in the
combined employer/employee pension contribution rate, which has not
been changed in 27 years. The plan's measures are intended to
improve the NPS's long-term sustainability and strengthen
pensioners' income security. Currently, the country's
pension fund is projected to be depleted by 2056 (despite it being
one of the world's largest, with 1,147 trillion South Korean
wons in assets). In addition, South Korea has the highest elderly
poverty rate among OECD countries, with more than 40% of the
population over age
