Pension and Retirement Taxation in North Korea

North Korea's retirement system is built around the state social security system, which provides pensions to eligible workers. This guide covers the tax treatment of pension contributions and retirement income.

State Pension System

Contributions

Contributions to the state pension system are mandatory for employed individuals:

• Employee Contribution: ~1% of gross salary
• Employer Contribution: ~10% of gross salary

Benefits

State pension benefits are subject to the following:

• Retirement age: 60 for men, 55 for women
• Pension amount: Determined by state formula based on contribution history
• Taxation: State pension income may be subject to tax at progressive PIT rates

Foreign Workers and Pensions

Foreign employees working in North Korea may or may not be covered by the state pension system depending on their employment arrangement:

• Expatriates on short-term assignments may not be required to contribute
• Long-term foreign employees may participate in the state system
• Many foreign workers maintain pension arrangements in their home country

Retirement Income Taxation

State Pensions

State pension benefits are generally taxable as ordinary income at progressive PIT rates (0-20%).

Private Savings

Private retirement savings options are extremely limited in North Korea. Most citizens rely entirely on the state pension system.

Tax Planning for Retirement

• Foreign workers should maintain retirement accounts in their home country
• Consider international pension implications for expatriates
• Review tax treaty benefits if applicable