National Pension Service
Korea, Republic of
Asia and Pacific

Overcoming COVID-19 crisis by alleviating financial burden of subscribers through waiving national pension premiums

Implementation year
2020

COVID-19 caused a crisis with economic and employment shocks, which led to increased unemployment and the self-employed shutting down businesses. With prolonged COVID-19 pandemic, there was an increase in the number of citizens (subscribers), who struggled to make payments on national pension premiums.

The National Pension Service (NPS) of the Republic of Korea made efforts to overcome the COVID-19 crisis by alleviating financial burden by temporarily waiving premium payments and payments of arrears.

Considering the urgency of the crisis, the NPS quickly developed guidelines and standards to allow temporary waiver and simplified the submission of documents for the convenience of applicants.

The NPS also strengthened notification of resuming premium payments because the exemption period is not included in the National Pension term and therefore may have an impact on pension provision, while also making efforts to protect pension rights by making workers’ consent as an essential process of the application.

As a result, the NPS temporarily waived (from March 30 to July 15, 2020) premiums for 225,000 citizens with reduced income due to COVID-19, alleviating financial burden of 120.3 billion South Korean won (KRW) as well as waived 4.27 million cases of arrears, resulting in leading COVID-19 crisis recovery.

Topic:
Social policies & programmes