This guide covers: How the NPS works, how much you pay, who can get a refund, how to claim it before or after leaving Korea, and what changed in 2026.
Introduction
Korea's National Pension Service (NPS / 국민연금) is a mandatory public pension program that requires all foreign workers between the ages of 18 and 60, including English teachers, to contribute a percentage of their monthly salary. The academy contributes an equal amount on the teacher's behalf.
Every English teacher working at a Korean academy will encounter the NPS. Contributions come out of every paycheck. But most teachers don't learn the rules until they're about to leave Korea and suddenly want their money back.
This guide explains how the pension system works, who can get a refund, how to claim it, and what changed in 2026.
What Is the Korea National Pension Service (NPS)?
The National Pension Service (국민연금, Gungmin Yeonggeum) is Korea's mandatory public pension program, equivalent to Social Security in the United States or a superannuation fund in Australia.
Here's the simple version:
A percentage of every paycheck goes into the pension fund
The academy matches that amount
Teachers who qualify can get all of it back when they leave Korea
Teachers who stay long enough may be eligible for monthly pension payments in retirement
For most English teachers on E-2 visas, the practical question is: can I get a refund when I leave?
How Much Comes Out of Each Paycheck?
In 2025, the total contribution rate was 9% of monthly salary, split equally between teacher and academy (4.5% each).
2026 Rate Increase: What Changed
Korea passed its first major pension reform in 28 years. Starting January 1, 2026, contribution rates began a gradual annual increase.
Rates will continue increasing by 0.5% per year through 2033, when the total rate reaches 13%. For current-year rates beyond 2026, verify directly with the NPS English website.
What this means in practice: A teacher earning 2,500,000 won per month paid about 112,500 won per month in 2025. Starting in 2026, that rises to roughly 118,750 won per month.
The salary ceiling for contributions is capped at 6,370,000 won per month, so the maximum employee contribution is about 302,570 won per month as of early 2026.
Who Is Exempt From Korea's National Pension?
Some teachers do not have to contribute. The exemption depends on nationality, not visa type.
Nationals from exempted countries:
Foreigners from countries whose pension systems do not require Korean citizens to contribute when working there are excluded from mandatory NPS enrollment. This is called the "reciprocity exclusion."
Countries currently excluded include: Armenia, Bangladesh, Cambodia, Egypt, Ethiopia, Fiji, Iran, Maldives, Myanmar, Nepal, Pakistan, Saudi Arabia, Singapore, South Africa, Tonga, and Vietnam.
Note: Exempt does not mean "cannot participate." Teachers from these countries may choose to opt in, particularly if planning a long-term stay.
Nationals covered by a Social Security Agreement:
If Korea has a totalization agreement with a teacher's home country, and that teacher remains covered under their home country's pension system, they can submit a Certificate of Coverage to avoid double enrollment. See the full list of agreement countries on the NPS Social Security Agreement page.
Can Foreigners Get a Pension Refund in Korea?
Yes, but eligibility depends entirely on nationality. Teachers from qualifying countries can claim a lump-sum refund of all pension contributions plus interest when they leave Korea permanently.
Countries Eligible for a Lump-Sum Refund (as of January 1, 2026)
By Social Security Agreement (24 countries):
Australia, Argentina, Austria, Belgium, Brazil, Bulgaria, Canada, Croatia, Czech Republic, France, Germany, Hungary, India, Luxembourg, Peru, the Philippines, Poland, Romania, Slovakia, Slovenia, Switzerland, Türkiye, the United States, Uruguay
2026 update: Argentina and the Philippines are newly added to this list.
By Reciprocity (25 countries):
Teachers from the following countries can also receive a refund, though some require a minimum contribution period first.
Regardless of insured period: Cambodia, Colombia, Ghana, Hong Kong, Indonesia, Kazakhstan, Kenya, Malaysia, El Salvador, Bermuda, Sri Lanka, Sudan, Trinidad and Tobago, Tunisia, Uganda, Vanuatu, Solomon Islands
After at least 1 year of contributions: Bhutan, Cameroon, Grenada, Jordan, Saint Vincent and the Grenadines, Thailand, Zimbabwe
After at least 6 months of contributions: Belize
By Visa Type (regardless of nationality):
Anyone who worked on an E-8, E-9, or H-2 visa is eligible for a refund for contributions made during that period.
What If My Country Is Not on the List?
Teachers from countries not covered by any of the above categories cannot claim a refund. Contributions made remain in the Korean pension fund. The only alternative is to have contributed for at least 10 years, which would make a teacher eligible for a monthly pension at retirement age.
The country list does change periodically. It is worth confirming the current list directly with the NPS before leaving Korea.
How to Claim the NPS Lump-Sum Refund
There are three ways to apply, depending on whether the teacher is still in Korea or has already left.
Option 1: Apply Before Leaving Korea (Recommended)
Visit a regional NPS office within one month of the planned departure date.
Documents needed:
Completed application for lump-sum refund (available at any NPS office)
Passport
Alien Registration Card (ARC)
Copy of bank account proof
Copy of flight ticket or departure booking (departure must be within one month)
After submitting, the refund is paid to a Korean bank account or processed as an overseas transfer.
Option 2: Claim at Incheon Airport on Departure Day
For teachers leaving through Incheon International Airport, the NPS offers same-day cash payment in foreign currency.
How it works:
Apply at a regional NPS office beforehand and select "airport payment"
On departure day, visit the NPS Incheon Airport Center at Terminal 1, 1F between Exits 1 and 2 (open 9:00am to 6:00pm, weekdays only)
Receive a Direction for Payment document
Go to the Woori Bank currency exchange before immigration
Collect cash at the Woori Bank booth in the duty-free area after clearing immigration
Available currencies: USD, EUR, JPY, CNY, and 12 others. Korean won is not available at the airport.
Important notes:
Airport service is not available on weekends, public holidays, or the last business day of December
Flights must depart between 10:30am and midnight (Terminal 1) or 11:00am and midnight (Terminal 2)
The academy must report the teacher's resignation to NPS before the departure date
Always provide a backup Korean or overseas bank account when applying, in case airport payment is unavailable
Option 3: Apply After Returning Home
Teachers who have already left Korea can still apply by postal mail or through an authorized agent.
Documents needed (by mail):
Completed application for lump-sum refund
Passport copy
Bank account proof
Completed application for overseas remittance
All documents issued outside Korea must be officially notarized and consulate-attested. For countries party to the Hague Apostille Convention, an Apostille certificate replaces the consulate attestation step. Documents in languages other than Korean must be translated and notarized.
Applying through a home country institution:
Teachers from Mongolia, Uzbekistan, Thailand, Sri Lanka, Kyrgyzstan, and Indonesia can apply through their home country's social insurance institution directly, with simplified document requirements.
How Long Do I Have to Claim My NPS Refund?
The refund claim window is 5 years from the date of entitlement, which is typically the date of departure from Korea. After 5 years, the standard claim window expires.
There is an extended window: claims can still be submitted within 10 years after reaching age 60, or within 5 years of death (by survivors). Do not allow the 5-year window to pass without submitting a claim.
Frequently Asked Questions
Can I get an NPS refund if I renew my contract and stay longer?
The lump-sum refund is only available upon permanent departure from Korea. Teachers who renew and continue working do not receive a refund until they leave for good. Contributions continue to accumulate throughout the stay.
What if I worked at multiple academies in Korea?
All contributions made across different employers are pooled under a single NPS account tied to the Alien Registration Number. A teacher does not need to file separately for each workplace.
Does the NPS refund include the academy's contribution too?
Yes. The lump-sum refund reflects the full contribution record, including both the employee and employer portions. Both sides of the contribution are included in the calculation.
What if I want pension benefits instead of a lump-sum refund?
Teachers who have contributed for at least 10 years may opt for monthly old-age pension payments at retirement rather than taking the lump sum. Those who claim the refund first cannot later claim monthly benefits. This decision is permanent.
What about the interest on my NPS contributions?
The lump-sum refund includes interest calculated based on the 3-year fixed deposit rate, covering the period from the month after contributions began through the month entitlement becomes effective.
How do I check how much I have in my NPS account?
Foreign workers can check contributions by visiting any regional NPS office with a passport and ARC. The NPS International Affairs line (02-2176-8700) can also assist in English. Online access through the NPS website requires a Korean digital certificate.
How long does the NPS refund take to process?
Processing times vary. When applying in person before departure, refunds are typically processed within a few weeks. Airport same-day payment is the fastest option for eligible travelers. Overseas postal applications take longer due to document verification.
Can I get my NPS refund at Incheon Airport on the day I leave?
Yes, if the claim is filed in advance at a regional NPS office and airport payment is selected. The NPS center at Terminal 1 processes the Direction for Payment, and Woori Bank handles the currency exchange and cash disbursement before and after immigration. All steps must be completed on the departure day.
What happens to my Korean pension contributions if I never return to Korea?
Teachers from eligible countries can claim the refund from abroad by postal mail or through an agent. Teachers from ineligible countries who have fewer than 10 years of contributions will not receive a refund or pension. Contributions remain in the NPS fund.
I already left Korea. Can I still get my pension back?
Yes, if the 5-year claim window has not passed and the home country is on the eligible list. Apply by postal mail to any regional NPS office or through an authorized agent. Teachers from MOU countries (Mongolia, Uzbekistan, Thailand, Sri Lanka, Kyrgyzstan, Indonesia) can apply through their home country's social insurance institution.
Useful Contacts
Legal Disclaimer: This guide is for general informational purposes only and does not constitute legal advice. Pension regulations, contribution rates, and eligible country lists are subject to change. Always verify current requirements directly with the National Pension Service (nps.or.kr) or by calling 1355.
Summary
Korea's NPS is mandatory for all foreign workers aged 18 to 60, including English teachers at private academies
From January 2026, contribution rates increased from 9% to 9.5% total, with annual increases continuing through 2033
Lump-sum refunds are available to nationals of 24 countries by social security agreement and 25 countries by reciprocity, as of January 1, 2026
The refund can be claimed before leaving Korea, at Incheon Airport on departure day, or by mail after returning home
The standard claim window is 5 years from the date of departure — do not let it lapse
Korea's NPS is mandatory for all foreign workers aged 18 to 60, including English teachers at private academies
From January 2026, contribution rates increased from 9% to 9.5% total, with annual increases continuing through 2033
Lump-sum refunds are available to nationals of 24 countries by social security agreement and 25 countries by reciprocity, as of January 1, 2026
The refund can be claimed before leaving Korea, at Incheon Airport on departure day, or by mail after returning home
The standard claim window is 5 years from the date of departure — do not let it lapse
Last updated: June 2026. Information reflects NPS policies as of January 1, 2026. Contribution rates and eligible country lists are subject to change. Verify all details directly with the National Pension Service before making any decisions.