Guide for Exemption Application

How to be Exempt from U.K Pension Contributions(social security tax)

• If you are mandatorily covered by the Korean National Pension Scheme, and you would like to be exempt from paying Social Security insurance contributions of the U.K., you must get a Certificate of Coverage under Social Security Agreement from the National Pension Service of Korea and submit(show) it to the U.K. Agency.
• 1. A request for a Korean Certificate of Coverage
  • If you are an employee, your employer must request a Korean Certificate of Coverage.
  • If you are self-employed, you yourself must request a Korean Certificate of Coverage.
• (1) Who requires a Korean Certificate of Coverage?
  • An employee who is sent to work in the U.K. within a certain period (5 years) by an employer
  • An employee who is sent to work in the U.K. within a certain period by an employer and the detached period is extended for a certain period (In this case, mutual consent between two countries is needed)
  • A self-employed person who ordinarily resides in Korea and works in the U.K.
  • An employee who ordinarily resides in Korea and works in both countries.
  • A self-employed person who ordinarily resides in Korea and works in the U.K. as well as in Korea
  • Members of a crew on a ship or aircraft who can be exempt from pension contributions (social insurance tax) of the U.K. under the Social Security Agreement between Korea and the U.K.
• (2)How to request a Korean Certificate of Coverage under the Social Security Agreement?
  • The employer or self-employed person must request a Korean Certificate of Coverage by visiting the National Pension Service of Korea with the required documents or sending the required documents to the National Pension Service of Korea by mail or fax.
  • National Pension Service, Center for International Affairs, 6^th Floor, Kukmin-Yeonkum Building, 180, Giji-Ro, Deokjin-Gu, Jeonju-Si, JEONBUK STATE, 54870, Korea
    - Fax (063)900-3404
• (3) Required Documents
  • "Application for Certificate of Coverage under Social Security Agreement"
  • Documents to confirm the employee's detachment such as a Detachment Order.
  • "Application for Certificate of Coverage under Social Security Agreement" is available on our website -> Social Security Agreement -> Forms or you can get them by visiting NPS's regional office and by copying the form in the manual brochure at the NPS.
• 2. Submission of the Certificate of Coverage to the U.K. Agency
  • In U.K., since an employer or a self-employed person is normally responsible for reporting and paying social security insurance contributions, you don't have to pay contributions for the period of coverage specified on the Korean Certificate of Coverage under the Social Security Agreement. However, when the U.K. agency requests the evidence for the exemption, you have to show that Certificate of Coverage.
  • If a contributor has already paid contributions for the previous exemption period, within a certain period, he/she is able to request a refund according to the interior procedure. However, in some cases, there could be limitations on the period regarding retroactive exemptions or refunds, so we recommend that you request the exemption allowing a suitable amount of time.

How to be Exempt from Pension Contributions

• If you are mandatorily covered by the U.K pension (social insurance) scheme, and you would like to be exempt from coverage under the Korean National Pension Scheme, you must get a Certificate of Coverage under the Agreement from the authorized Agency in the U.K. and submit it to the National Pension Service.
• 1. A request for a Certificate of Coverage from The U.K.
  • If you are an employee, your employer must request a Certificate of Coverage from an Agency in the U.K. If you are self-employed, you must request a Certificate of Coverage by yourself.
• (1) Who requires a U.K. Certificate of Coverage?
  • An employee who is sent to work in Korea within a certain period (5 years) by an employer
  • An employee who is sent to work in Korea within a certain period by the employer and the detached period is extended for a certain period (In this case, mutual consent between two countries is needed)
  • A self-employed person who ordinarily resides in the U.K. and works in Korea.
  • A person who ordinarily resides in the U.K. and works as a worker in Korea as well as in the U.K.
  • A self-employed person who ordinarily resides in the U.K. and works in Korea as well as in the U.K.
  • Members of a crew on a ship or aircraft who can be exempt from Korean National Pension Contributions under the Social Security Agreement between Korea and the U.K.
• (2) How to request a U.K. Certificate of Coverage under the Social Security Agreement?
  • - After contacting the U.K. Agency by phone or fax, you must request a certificate with the required documents according to the agency's procedures.
• (3) Issuing Agency of the U.K. Certificate of Coverage
  • HM Revenue & Customs (www.hmrc.gov.uk)
    (Tel. Outside of the U.K. : 44 191 225 4811, Within the U.K. : 0845 91 54811)

• 2. Submission of the Certificate of Coverage to the Korean National Pension Service
  • If you are a worker, your employer in Korea (if a self-employed, you yourself) must submit an "application of exemption" as well as an original copy of the "U.K. Certificate of Coverage", and a copy of your identification to the International Center or local office by visiting or by sending a registered letter. (Because an original copy must be submitted, a facsimile or a copy of the Certificate will not be accepted.)
  • If you submit a U.K.'s Certificate of Coverage of the pension (social insurance) scheme, you are exempt from Korean contributions for the period shown on the same Certificate. If you have already paid contributions before you submit your certificate, the amount of the contributions already paid can be transferred to your due contributions or refunded. However, in accordance with the regulations of the National Pension Scheme, the right to request a refund of a over-collected amount becomes valid only up to 5 years from the day following the processing of a qualification change, therefore, we recommend that you request the exemption within the required period.
  • ※ Information here on our website is a general guide. You can get more information at the International Center of the NPS or any local office of the NPS.