Article 6 (Persons Eligible to Participate in National Pension Plan), Article 88 (Imposition, Collection, etc. of Contributions), National Pension Act, as last amended by Act No. 14214, Nov. 30, 2016
Article 4 (Establishment of Retirement Benefit Schemes), Guarantee of Workers’ Retirement Benefits Act, as last amended by Act No. 10967, July 25, 2011

National pension system is mandatory. An employer shall register his/her employees to the system. The contributions are 9% of one’s wage in total. An employer and an employee bear half of it, which is 4.5% respectively.

An employer shall pay severance to those whose consecutive working years is more than one year after retirement of an employee. An employer can choose how to pay severance; a lump sum payment at the end of employment or retirement pension. Currently retirement pension system(defined benefit plans or defined contribution plans) is encouraged by government. Contribution for retirement pension is solely employer’s obligation.