Changes in conditions for receiving one-time pension benefits when retiring with excess years of contributions from July 1, 2025

This is one of the new contents in the Social Insurance Law 2024, officially taking effect from July 1, 2025.

The current Social Insurance Law stipulates the conditions for receiving a one-time benefit upon retirement: Employees whose social insurance payment period is longer than the number of years corresponding to the pension rate of 75% will, upon retirement, in addition to their pension, receive a one-time benefit.

The one-time subsidy is calculated based on the number of years of social insurance contributions, higher than the number of years corresponding to the pension rate of 75%. Each year of social insurance contributions is calculated as 0.5 months of the average monthly salary for social insurance contributions.

However, the Social Insurance Law 2024 has changed the conditions for receiving a one-time pension upon retirement. Accordingly, from July 1, 2025, the conditions for receiving a one-time pension upon retirement are as follows: For male workers, the period of social insurance contribution is higher than 35 years. For female workers, the period of social insurance contribution is higher than 30 years.

The one-time benefit level for each year of payment higher than the above-mentioned period is 0.5 times the average salary used as the basis for social insurance payment, for each year of payment higher than the retirement age.

In case an employee is eligible for pension but continues to pay social insurance, the subsidy is equal to 2 times the average salary used as the basis for social insurance payment, for each year of payment higher than the prescribed number of years, from the time after reaching retirement age according to the law until the time of retirement.

Thus, according to this calculation, retirees with excess years of contributions will receive a one-time benefit that is more beneficial than before.