Health ministry scraps 12-month cap on military service credit in pension revision

The health ministry said Tuesday it has promulgated a revision to the National Pension Act that abolishes the 12-month cap on military service counted toward pension contribution periods and raises the credit granted for a second child.

The overhaul, approved by the National Assembly and signed by President Lee Jae-myeong, means the entire period a person serves under the Military Service Act will count toward the contributory period used to calculate pension entitlement, with no ceiling. The new military service credit applies to people who complete their service on or after Jan. 1, 2027.

Credit for childbirth also expands. Where a second child is born, the pension period credited rises to 27 months, up from 24 months, with 12 months recognized for the first child and 15 months added for the second. Families with three or more children receive an additional 18 months for each child beyond the second. The childbirth provisions apply to people who have a second child on or after Jan. 1, 2027, though a person who had a first child on or before Dec. 31, 2025 and a second child after that date is credited 15 months for two children, plus 18 months for each child beyond the second.

For foreign subscribers and beneficiaries, the revision applies the principle of reciprocity to dependent family allowances and to retroactive payment of pension contributions. Foreign recipients will in general no longer receive the dependents' supplement, and foreign subscribers will in general be barred from making retroactive contribution payments, a benefit available only where the person's home country extends comparable treatment to Korean nationals. Exceptions may be set by presidential decree for foreigners by visa status, length of residence in Korea and length of contribution payment.

The military service and childbirth provisions take effect Jan. 1, 2027, and the delegated provisions on foreigners apply six months after promulgation.