Current Retirement Age in South Korea
Article 19 of the Act on the Prohibition of Age Discrimination in Employment and the Promotion of Employment for the Elderly has an obligation to comply with the statutory retirement age requirement that “the employer shall set the retirement age of workers at least 60 years old.”
After retirement, the law does not stipulate whether it is possible to rehire regular workers in the form of indefinite or professional contracts according to the company’s needs, so each company can set and implement standards.
Retirement Pension – Defined Benefit (DB) Plan and Defined Contribution (DC) Plan
There are two types of retirement pensions:
- DB Plan: Retirement pension system in which the severance pay is set in advance based on the salary of 3 months immediately before retirement.
- DC Plan: If the company accumulates 1/12 or more of the total salary of workers every year, it is a system in which workers can directly manage this amount and make a profit.
Eligibility for Retirement Benefits
To be eligible for retirement benefits, individuals must have contributed to the national pension system for at least 10 years.
Legal Framework Governing Retirement
The regulations governing the retirement age are well-defined in South Korea. The official retirement age is 60, but there are discussions about increasing it further due to longer life expectancies.
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Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of South Korea employment laws and regulations, please visit the official governmental websites.
Updated on: 16th January 2025
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