If you keep working while drawing the national pension, the pension can be reduced. Article 63-2 of the National Pension Act says that when an old-age pensioner works with income, an amount is taken off the pension according to “excess income” — monthly income minus the A value. An amendment of 16 December 2025 deleted the two bands below 2 million won of excess income, so from 17 June 2026 there is no reduction if excess income is under 2 million won. The addendum applies the change to income arising from 1 January 2025. Enter your income and pension below to see the reduction under the new and old rules.
1. Excess income = monthly income − the A value. The 2026 A value is 3,193,511 won.
2. From 17 June 2026, no reduction below 2 million won of excess income — the old bands (5% under 1 million; 50,000 + 10% from 1 to 2 million) were deleted.
3. It applies to income arising from 1 January 2025, and the reduction never exceeds half the pension.
Updates as you type. Excess income is monthly income minus the A value (Article 51(1)1); the reduction uses the formulas in Article 63-2, capped at half the pension. The default A value of 3,193,511 won is the 2026 figure (see ways to raise your pension). What counts as income-earning work and how income is measured follow the Enforcement Decree; the NPS decision is what counts.
The reduction table — Article 63-2
| Excess income | New rules (from 17 June 2026) | Old rules |
|---|---|---|
| Under 1 million won | No reduction | Excess income × 50/1,000 |
| 1 to under 2 million | No reduction | 50,000 + (excess − 1 million) × 100/1,000 |
| 2 to under 3 million | 150,000 + (excess − 2 million) × 150/1,000 | Same |
| 3 to under 4 million | 300,000 + (excess − 3 million) × 200/1,000 | Same |
| 4 million or more | 500,000 + (excess − 4 million) × 250/1,000 | Same |
The amount taken off can’t exceed half the old-age pension, and the pension here excludes the dependant addition (main text of Article 63-2). The old bands’ 50/1,000 is 5% and 100/1,000 is 10% (our conversion).
Who and when — Article 63-2
| Item | What the Act says | Worth noting (ours) |
|---|---|---|
| Who | An old-age pensioner in income-earning work as set by Presidential Decree | The income test is in the Decree — not read this time |
| Period | While aged 60 to under 65 (55 to under 60 for special occupations) | The Act’s wording |
| Basis | Excess income = monthly income − the Article 51(1)1 amount (A value) | — |
| Cap | Half the old-age pension | — |
From when, and which income — Addendum (Act No. 21203)
| Item | What the addendum says | Worth noting (ours) |
|---|---|---|
| Effective | The amended Article 63-2 takes effect six months after promulgation | The law database shows 17 June 2026 |
| Applies to | Income arising on or after 1 January 2025 | — |
How pensions already reduced are settled isn’t in the articles or addendum we read; ask the National Pension Service (our pointer).
With numbers — our examples
| Excess income (example) | New rules | Old rules |
|---|---|---|
| 500,000 won | 0 won | 25,000 won |
| 1.5 million won | 0 won | 100,000 won |
| 2.5 million won | 225,000 won | 225,000 won |
| 4.5 million won | 625,000 won (check the cap) | 625,000 won |
These run each band’s formula — our examples. The actual reduction is cut back to half the pension: with a 1 million won pension the cap is 500,000, so the last row becomes 500,000 won.
Checklist
- ☐ Subtract the A value (3,193,511 won in 2026) from your monthly income
- ☐ Under 2 million won: no reduction from 17 June 2026
- ☐ 2 million or more: check the reduction in the calculator
- ☐ The cap is half the pension
- ☐ Ask the NPS about settling 2025 income
Questions that remain
What salary triggers a reduction?
Once monthly income exceeds the A value plus 2 million won — 5,193,511 won in 2026 (our sum: 3,193,511 + 2,000,000). How monthly income is measured follows the Decree.
Does it apply to the early old-age pension?
Article 63-2 includes the amount under Article 66(3) (early pension). Early and deferred pensions are in early vs deferred pension.
Sources
- Korean law database (law.go.kr) — National Pension Act Art. 63-2, Art. 51, Addendum (Act No. 21203, 16 Dec 2025) — source (current text effective 17 June 2026 and the 20 December 2024 historical text; checked 19 October 2026). Current and former Article 63-2 bands, the cap, the age period, the addendum’s effective date and application.
- Also used. The 2026 A value of 3,193,511 won, as set out in our ways to raise your pension post.
- Not read. The Enforcement Decree (income-earning work, measuring income); NPS settlement guidance.
- What we added. The “worth noting” column and the Korean everyday gloss.
Where else to check
- National Pension Service — your income assessment and settlement.
Written on 19 October 2026. The content is from the source; the glosses are ours.
