Employees aged between 18 and 60 years are eligible for the national pension. Any business with more than five employees is required by law to join the pension insurance scheme.

National pension membership is divided into company membership, local membership, voluntary membership and continued voluntary membership. In addition, company membership is subdivided into:

• Obligatory membership – employees aged between 18 and 60 years, working in a business that has five or more employees
• Voluntary membership – employees aged between 18 and 60 years, working for a business that has less than five employees
• Special membership – employees aged under 18 years, working for a business associated with the national pension with the employer’s agreement
• Foreigners, and Korean people who have the citizenship of a foreign country, aged between 18 and 60 years, working in Korean businesses associated with the national pension

The employee loses his or her eligibility in the following situations:

• Termination of employment
• Death, loss of nationality or emigration
• If aged 60 years or older.

If an employee joins the army, his or her pension premium is exempted. However, the payment is resumed when the employee returns to his or her job.

Pension premium is calculated by multiplying the monthly standard compensation and the premium rate (4.5% at present). It is deducted from the employee’s pay each month. Both the employer and the employee pay their share for pension insurance.