30% Deduction on Earned Income for Livelihood Benefits, Additional Deductions for the Elderly and Others — Ministry of Health and Welfare Explains Income Calculation Structure for Livelihood Benefits
Source material is a Korean government announcement (in Korean).
30% of earned income is deducted for Livelihood Benefit recipients, and work-vulnerable groups such as the elderly and young people receive additional deductions — for example, if a 65-year-old earns 1,000,000 won, only 560,000 won is reflected as income.
Key facts
| Livelihood Benefit amount | The amount by which the income-recognized amount falls short of the eligibility standard (32% or less of the standard median income) |
|---|---|
| Earned income deduction | 30% deduction on earned income, with additional deductions for work-vulnerable groups such as the elderly and young people |
| Example (65-year-old) | Earned income of 1,000,000 won → 200,000 won deducted first, then 30% (240,000 won) of the remaining 800,000 won deducted additionally → only 560,000 won reflected as income |
| Basic Pension | Included in the income-recognized amount under the principle of supplementary benefits |
| Non-metropolitan and rural/fishing areas | Direct payments, childcare facility fees (150,000 won), and part of loan repayment interest deducted; farm and fishery assets additionally deducted within 5,000,000 won |
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In a press explanation released on September 23, 2026, the Ministry of Health and Welfare (보건복지부) explained that Livelihood Benefits (생계급여) are paid as the amount by which a recipient's income-recognized amount falls short of the eligibility standard (32% or less of the standard median income), and that to encourage work, 30% of earned income is deducted, with additional deductions applied for work-vulnerable groups such as the elderly and young people. As an example, if a 65-year-old earns 1,000,000 won in earned income, 200,000 won is deducted first, and then 30% (240,000 won) of the remaining 800,000 won is deducted additionally, so that only 560,000 won is reflected as income. The Basic Pension (기초연금) is included in the income-recognized amount under the principle of supplementary benefits, and in non-metropolitan and rural/fishing areas, direct payments, childcare facility fees (150,000 won), and part of loan repayment interest are deducted, with farm and fishery assets additionally deducted within 5,000,000 won.
Summaries below are factual notes based on government announcements and primary sources — not evaluations or opinions.
FAQ
Is the Basic Pension also counted as income when calculating Livelihood Benefits?
Yes. Under the principle of supplementary benefits, the Basic Pension is included in the income-recognized amount. The Ministry of Health and Welfare said it will continue to review measures to secure income for elderly people in extreme poverty.
How is the income-recognized amount calculated?
It is the sum of the assessed income amount (earned, business, transfer income, etc.) and the income-converted value of assets (real estate, vehicles, etc.). Household-specific expenditure factors such as disability, illness, and childcare, as well as work-incentive factors, are excluded from the assessed income amount.