The payslip shows the National Pension contribution taken out, but the employer never paid it over. What happens to your pension? Korean law counts half of that period as insured time. And once an arrears notice arrives, it gives the employee a way to restore the period by paying directly. We read Articles 17 and 90 of the National Pension Act in the original.
1. Deducted but not paid: half is counted. Where the employer deducted the contribution from wages and did not pay, 1/2 of the unpaid period is included in the employee’s insured period (proviso to Article 17(2)).
2. After the arrears notice, counting stops. From the month after the notified month of arrears, the arrears period is not included (Article 17(3)).
3. You can pay directly. Paying the employee’s share alone gives 1/2 of the arrears period; paying both shares gives all of it (Article 17(3), items 1 and 2).
First — the employer’s duty, Article 90
- Withholding — the employer must deduct the workplace-based insured person’s contribution from each month’s wages and pay it ((1)).
- Deduction statement — on deducting, the employer must give a deduction statement; a payslip or the like showing the deduction counts as one ((2)).
- Arrears notice — if the employer does not pay, the National Health Insurance Service must notify the employee of the workplace’s arrears ((4)) and give additional notice by text message, email or similar ((5)).
We read the two Korean terms as the employee’s share and the employer’s share of the contribution (our gloss — we did not reproduce the definitions provision this time). Since a payslip serves as the deduction statement, it is the evidence that the money left your wages.
How the insured period is counted — Article 17(1) and (2)
- By month — from the month after the month in which insured status is acquired to the month containing the day before it is lost ((1)).
- When the month of acquisition also counts — acquisition on the first day of the month, acquiring voluntarily-continued status, or where the insured person so wishes (proviso to (1), items 1 to 3).
- Unpaid periods — a period in which contributions were not paid is not included (main text of (2)).
- The exception — where the employer deducted the contribution from wages and did not pay, 1/2 of that period is included; a period of less than 1 month counts as 1 month (proviso to (2)).
Before and after the notice — Article 17(3)
| Situation | Insured period (statute) | On 6 months of arrears (ours) |
|---|---|---|
| Deducted but not paid (up to the notified month) | 1/2 of the period | 3 months |
| From the month after the notified month | Not included | 0 months |
| Employee pays the employee’s share only for that period | 1/2 of the arrears period | 3 months |
| Employee pays both shares | The whole arrears period | 6 months |
“6 months” is our example, and each row is worked separately as if that situation lasted 6 months. For an odd number such as 5 months, half is 2.5 months; since the text says a period of less than 1 month counts as 1 month, we read that as 3 months.
The point: until the notice arrives, half is counted without your doing anything, but from the month after the notice, doing nothing gives 0. From then on the period exists only if you pay.
If you pay directly — Article 17(4) and (5)
- Interest after 10 years — where 10 years have passed since the monthly deadline, interest set by Presidential Decree must be added ((4)).
- Refund if the employer later pays — when the Service receives or collects the arrears from the employer, it must return what the employee paid twice, with interest ((5)).
The interest rate and payment procedure are in the Decree, which we did not read this time.
Checklist
- ☐ Do your payslips show the National Pension deduction, and have you kept them?
- ☐ Are any months missing from your contribution record?
- ☐ If you received an arrears notice, counting stops from the following month
- ☐ Decide whether to pay directly, and whether one share or both
Questions that remain
What if the employer never deducted anything?
The half-credit is a proviso for the case where the employer “deducted the contribution from wages” and did not pay. How it treats a case with no deduction cannot be settled from the text alone, and we did not check.
Is this different from the contribution exemption?
Yes. The exemption is for when you yourself cannot pay, for unemployment, leave and so on (contribution exemption); this article is about an employer who did not pay. Late charges are in deadline and late charge.
Sources
- National Pension Act [Act No. 21203, partially amended 16 December 2025] — original text (checked 5 October 2026). Article 17(1) (by month; from the following month; proviso items 1 to 3), (2) (unpaid periods not included; 1/2), (3) (from the month after the notified month; items 1 and 2), (4) (10 years; interest), (5) (refund of double payment); Article 90(1), (2), (4) and (5).
- Not read. The Decree’s interest rate and payment procedure, the Ministry ordinance on notice methods, and the definitions of the two shares.
- Our own examples. The 6-month and 5-month examples and the 3 and 6 months are our arithmetic.
Where to check further
- The scheme as a whole — National Pension basics.
- Your workplace’s payment record and the direct-payment amount — the National Pension Service (1355 in Korea) can confirm them from your record.
Written on 5 October 2026. The provisions are as published by the Korea Law Information Center; the reading and examples are ours.
