"They Definitely Deducted National Pension Contributions from My Pay"... 130,000 at Risk of Missing Out on Pensions Due to Employer Nonpayment

1.5 Million Workers Disadvantaged in Contribution Periods Due to Employer Arrears
130,000 Meet "Old-Age Pension Eligibility Requirements" If Unpaid Periods Are Counted

More than 1.5 million workers have a history of not receiving full credit for their National Pension enrollment periods because their employers failed to properly pay the monthly pension contributions deducted from their wages, a new report shows. In particular, 130,000 people could meet the minimum 10-year enrollment requirement for receiving an old-age pension if the periods during which their employers fell behind on payments were also credited in full.

Image created to help readers understand the article. Photo by Seo Dongmin of The Asia Business Daily.

130,000 Fall Short of 10-Year Requirement Because Employers Failed to Pay Contributions

According to data submitted by the National Pension Service to Rep. So Byung-hoon of the Democratic Party of Korea, a member of the National Assembly’s Health and Welfare Committee, 1,503,427 people had a history of not receiving full credit for their enrollment periods because their workplaces had failed to pay contributions as of September 2026. They had an average of about seven months of unpaid contributions per person.

As a rule, people must complete 10 years of enrollment, or 120 months, to receive a monthly old-age pension after retirement. However, if an employer falls behind on contributions, the entire period may not be credited toward an employee’s enrollment, even if the employee actually worked during that time.

There were 134,616 people whose credited enrollment periods were currently shorter than 120 months but who could reach 10 years if their employers’ unpaid periods were added. Of these, 20,982 were aged 60 or older. In particular, 56,883 people had only 119 months of credited enrollment. If even one month of the contributions unpaid by their employers were credited in full, they would meet the eligibility requirement for an old-age pension.

Cases of harm were also identified among people who had already received a “lump-sum refund” of the contributions they had paid instead of an old-age pension. Among those who received a lump-sum refund between 2023 and June 2026, 2,823 could have met the 10-year enrollment requirement if their employers’ unpaid periods had also been counted.

The Company Failed to Pay Contributions, but Workers Bear the Cost

Photo for illustrative purposes only; not related to the specific content. Getty Images.

The problem is that workers may bear the consequences of unpaid contributions, even though employers are responsible for paying them. The employer and employee each pay half of the National Pension contribution, and the employer deducts the employee’s share from their wages and pays both shares together.

However, if an employer fails to pay the contributions, the entire unpaid period may not be credited toward the employee’s enrollment even if the employee pays their own share directly. Depending on the circumstances, workers may have to pay the employer’s share as well to have the entire period credited.

The National Pension Service also recognizes the need to provide relief to workers. In a statement to Rep. So’s office, the agency said, “We fully recognize the need to provide relief to workers who have been disadvantaged because their employers failed to pay contributions, even though the contributions were deducted from their wages.” However, it said careful consideration was necessary, as crediting periods for which contributions have not been paid could place a financial burden on the National Pension system and raise concerns about fairness to those who have paid their contributions diligently.

Rep. So stressed, “It is unreasonable for blameless workers to risk losing their retirement pensions simply because their employers failed to pay contributions, when the obligation to pay them rests with the employers. We must establish a way to credit workers’ enrollment periods first and hold delinquent employers accountable.”

This content was produced with the assistance of AI translation services.