National Pension in Korea: what Australians pay and how to get it back

That "National Pension" line on your Korean payslip isn't money gone. For most Australians it's a forced savings account with a refund when you fly home.

The short version

• Most employees in Korea, including foreigners, pay into the National Pension run by the National Pension Service (NPS). In 2026 the rate is 9.5% of pay, split 4.75% you and 4.75% your employer [1].
• The rate rises by 0.5 points a year until it reaches 13% in 2033 [1].
• Under the Australia–Korea Social Security Agreement, in force since 1 October 2008, Australians who leave Korea can claim a lump-sum refund if they have at least one year but less than ten years of contributions [2][3].
• You have five years after leaving Korea to claim it [3].
• If you take the refund, those years can't later count towards a Korean pension or the Australian Age Pension [3]. Long-stayers should think before cashing out.

Who pays and how much

Korea's National Pension is roughly the opposite of Australian super. It's a government scheme, not your own fund, and it pays a monthly pension from retirement age based on how long you contributed and what you earned. Employees from countries with a reciprocal arrangement, Australia included, are generally covered from their first Korean pay.

The 2026 rate

Korea passed its first pension contribution increase in 28 years in March 2025 [1]. The schedule is:

Rates in the years between rise by 0.5 points each January [1]. Contributions are based on your monthly income, up to a ceiling. In 2026 the maximum is KRW 302,575 a month for each of you and your employer [4]. That ceiling only affects people on high salaries.

Freelancers and the self-employed

If you work for yourself in Seoul, you may be enrolled as a "locally insured" person and pay the full rate yourself. If an NPS notice arrives at your address, don't ignore it. Ring the NPS on 1355 or visit a branch.

Hagwon contracts and pension

Some hagwon contracts say the school will pay pension contributions "for eligible nationalities". Australians are eligible. Check your payslip shows the deduction and ask HR for your NPS enrolment record early. You can check your contribution history on the NPS website once you have identity verification. Gaps are easier to fix while you're still employed.

How the Australia–Korea agreement helps

Australia doesn't have a contributions-based state pension. It has the means-tested Age Pension and super. So the agreement works a little differently from Korea's deals with European countries. It does three main things.

1. A lump-sum refund for Australians

Korea agreed to refund contributions paid by Australian nationals, similar to how Australia refunds super to temporary residents who leave [5]. The NPS lists Australia among the countries whose nationals qualify through a social security agreement [8]. The conditions [2][3]:

• You're an Australian national.
• You've left Korea.
• You have at least 12 months of contributions.
• You have less than 10 years of contributions (10 years is the point where you'd qualify for a Korean pension).
• You claim within five years of leaving Korea.

The refund is worked out from the contributions recorded in your name, which include your share and your employer's. The NPS calculates the exact figure, so don't rely on adding up your payslips.

Contributed for less than a year? The agreement's refund doesn't apply [2]. That catches people who leave a first contract early.

2. Totalising for pensions

If you stay longer or move between the two countries over a career, the agreement lets each country count time in the other:

• Korean pension: if you have at least 12 months of Korean coverage but not the 10 years needed, Australian working-life residence can fill the gap. Korea then pays a share based on your Korean years [6].
• Australian Age Pension: you normally need 10 years of Australian residence. Korean coverage can count towards that [2]. Australia pays a proportional rate. For example, 20 years of Australian working-life residence gives 20/35ths of the means-tested rate [2].
• Living in Korea: former Australian residents who reach pension age in Korea can claim the Age Pension without moving back [5]. You need at least 12 months of Australian working-life residence [2].

Once you take a lump-sum refund, you give up the Korean pension and you can't use those years to totalise for an Australian pension [3].

3. No double contributions for secondees

If an Australian employer sends you to Korea temporarily, you usually stay in the Australian system and don't pay Korean pension. The exemption covers postings of up to five years and can be extended by agreement [6]. On the Australian side, the ATO handles the paperwork [2]. Ask your employer to arrange this before you start in Seoul.

Refund or pension: which suits you?

If you're unsure, it can make sense to wait. You have five years to claim, so you don't need to decide at the gate at Incheon.

How to claim your refund

You can apply in Korea before you leave, or from Australia afterwards.

1. Check your record. Ask the NPS for your contribution history (call 1355 or visit a branch). Make sure every employer's contributions show up.
2. Gather your documents. Usually your passport, your Alien Registration Card, proof of departure (such as your ticket or an immigration record) and Korean bank details, or Australian account details if you'll be paid after leaving. The NPS will tell you exactly what it needs.
3. Apply in Korea. Lodge the claim at an NPS branch. There are several across Seoul; the NPS website lists them. Do it in your last weeks, once your final pay has gone through.
4. Or apply from Australia. The agreement lets you lodge claims through Services Australia: visit a Centrelink service centre or call Centrelink International Services on 13 1673 [2]. They pass the claim to Korea.
5. Keep proof of everything. Copies of your application, your contribution record and any NPS letters.
6. Watch the deadline. Five years from leaving Korea [3]. Set a reminder if you're not sure you're done with Korea.

Thinking of coming back to Korea later? Ask the NPS before you claim. Once refunded, those years are gone for good [3].

Pension, tax and your Australian paperwork

A few loose ends Australians often miss:

• Super keeps going separately. Your Korean pension doesn't stop your Australian super fund. You can still make voluntary contributions, though there are rules if you're overseas. See super while living overseas.
• Tax on the refund. Ask a tax adviser how the refund is treated in Australia if you're still an Australian tax resident when it's paid. The treaty's pension article says pensions are generally taxed where you live [7], but a refund of contributions may be treated differently.
• Moving money home. Refunds paid into a Korean account need to be sent to Australia. Compare the bank rate with a specialist transfer service before you send. Our guide to sending money home covers the fees.

Want to know how fast other Aussies got their refund, or which NPS branch has English help? Ask in Cooee South Korea, our Facebook group for Australians in South Korea.

Sources

1. South Korea to increase National Pension Service contribution rates – Lockton Global
2. Social Security Agreement between Australia and Korea: FAQ – Department of Social Services
3. Social Security Guide 10.22.7.60: Lump sum refunds, agreement with Korea – Department of Social Services
4. 2026 social insurance rates in Korea – Crowe Korea, January 2026
5. Australia–Korea Social Security Agreement – Australian Embassy, Republic of Korea
6. Korea–Australia Social Security Agreement – National Pension Service
7. Australia–Korea tax convention, synthesised text – Australian Taxation Office
8. Lump-sum refund for foreigners – National Pension Service

Keep reading

• Income tax in Korea: year-end settlement, the flat rate and the treaty
• Working holiday and teaching English in Korea
• Centrelink and the Age Pension when you live abroad
• Super while living overseas