Guide to the National Pension for Foreigners

About the National Pension Scheme 

* The National Pension Scheme is a Social Security System implemented by the Korean government to ensure a stable livelihood by collecting contributors and paying pension benefits for the insured or their dependents, and to prepare for retirement or unexpected calamities such as disability and death,.

Compulsory Coverage of the National Pension Scheme 

* Like Korean nationals, foreigners aged between 18 and 60 who reside in Korea are subject to the compulsory coverage of the National Pension Scheme .
Foreigners whose countries do not cover Korean nationals under their public pension scheme, however are excluded from coverage under the NPS.
* Despite the above provisions ,if there are relevant provisions under the Social Security Agreement between Korea and any foreign country , those provisions will be applied.

Countries exempted from the National Pension (20 Countries)

* South Africa, Nepal , The Maldives , Myanmar , Bangladesh , Vietnam , Saudi Arabia , Singapore , East Temore , Armenia , Ethiopia , Egypt , Tonga , Pakistan , Fiji , Cambodia , Belarus , Georgia , Swaziland,

Payment Contributions 

* For workers the employees and their employers should each make contributions for the employees amounting to 4.5 % of the standard monthly income respectively , based on the employees earned income for a total l contributions of 9 % of the employees monthly income.
* Individually Insured Persons should make contribution amounting to 9 % of their reported standard monthly income.
* There is no discrimination in terms of the contribution rate between foreigners and Korean . The payment should made no later than the 10th day of the following month .

Benefits

* If foreign insured persons are entitled to an Old-age, Disability , or Survivor Pension , they will receive pension benefits according the the same standards Korean nationals.

A) Old-aged Pension
- The Old -aged Pension is paid monthly to those whose insured period is 10 years or more and are over 60 years old. However, beginning with people born between 193~56 and continuing in 4 years blocks, the pensionable age will incrementally increase by 1 year until it reaches a maximum of 65 years of age for people born in, and after 1969 .

B) Disability Pension
- The Disability Pension is paid to those with a disability after the treatment of diseases or injuries incurred during the insured period , according to the degree of their disability . Annuities will be paid to those with 1st, 2nd, and 3rd Degree of their disabilities and lump-sum benefits will be paid to those with 4th degree disabilities.

C) Survivor Pension 
- If currently insured persons or pensioners are deceased , a Survivor Pension will be paid every month to their surviving dependents whose livelihood was supported by the deceased person.

D) Lump-Sum Refund 
- In principle , a lump-sum refund is not paid to foreigners . However in the case of foreigners meeting any any of the following criteria, when they leave Korea or reach the age of 60, a lump - sum refund equivalent to the amount of contributions paid plus the fixed interest is paid to them, or to their survivors if they should die.

1 A foreigner whose home country has concluded a social security agreement with Korea to secure benefit rights by combining the insured period in each sountry.

       2. A foreigner whose country grants Koreans a benefits corresponding to a Lump-sum refund.    
   
        3. A foreign workers whose visa is either E-8 (Employment for Training) E-9 (Non -proffesional Employment , or H-2 (Visiting Employment)


Countries eligible for lump-sum refunds (44countries)

- Via Reciprocity: Belize , Grenada , Nigeria  , Barbados , Saint Vincent , and Grenadine, Zimbabwe , Cameroon, Congo, Thailand, Togo, Venezuela, Ghana, Malaysia, Vanuatu, Bermuda, Sudan, Sri-Lanka, Switzerland, El Salvador , Jordan , India , Indonesia ,Kazakhstan, Kenya , Trinidad  and Tobago, The Philippines, Hong-Kong, Turkey , Columbia, Tunisia , Uganda , Bhutan,

- By Agreement: Germany , U.S , Canada, Hungary , France , Australia , Czech Republic , Belgium, Poland , Slovakia, Bulgaria, Romania , Austria

Application for the Lump- Sum Refund
* Applying in Korea (before departing Korea) :
- Application Form , a copy of ID card ( passport , Alien Registration Card)bankbook, plane ticket,
* Applying overseas (after departing Korea): Application form (notarized by a notary agency of the country in which you reside and attested to by the Koran Consulate or Embassy ) A copy of passport , A copy of bankbook
- When you apply for a lump-sum refund through an agent in Korea, the application must be submitted only by mail in order to avoid extra administration fees and incorrect or false applications
- It is possible o apply for a lump-sum refund through the agency in a contacting country
(including 14 countries : Germany , U.S , Canada, Hungary , France , Australia , Czech Republic , Belgium, Poland , Slovakia, Bulgaria, Romania , Austria,India)

Contacting Place

* Regional Offices of the National Pension Service (www.nps.or.kr)
* Incheon International Airport office ( 1st flr. Zone A, Gate 2)

APPLICATION FOR LUMP-SUM REFUND AT THE AIRPORT

* Who can apply: A foreigner who is schedules to depart for his own country through Incheon International Airport within a month of his/her application
- Airport Payment is applicable only if the flight's departure time is between 11:00 through 24:00 on weekdays
- After applying for the Lump-sum Refund at NPS regional branches , receive a " Direction for Payment of Lump-sum refund" from Incheon International Airport Office on the date of departure
-Receive a "Receipt of Currency Exchange"from Shinhan Bank Incheon International Airport office after handing in "Direction for Payment of Lump-sum Refund"
- You will receive the Lump-sum Refund after going through the immigration departure procedure.

Payment of Lump-sum Refund under the MOU (including 4 countries : Mongolia, Uzbekistan , Thailand, Sri-Lanka
* Who can apply: Employees who have paid contributions in Korea but have not applied for lump-sum refunds, returning to their home countries
* Required Documents: A copy of a passport , A copy of bankbook,A copy of ID card (such as passport, Alien Registration Card), MOU Application form (available at a contacting agency
* Contacting agency : -Mongolia: Mongolian Social Welfare Center
-Uzbekistan:AFLMA ( Agency of Foreign Labor Migrations Affairs
-Thailand: DOE ( Department of Employment
- Sri=Lanka : SLBFE (Sir-Lanka Bureau of Foreign Employment )


Source:NPS
homepage:www.nps.or.kr
booklet from Labor Attache

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