Site Search:
 
Speak Korean Now!
Teach English Abroad and Get Paid to see the World!
Korean Job Discussion Forums Forum Index Korean Job Discussion Forums
"The Internet's Meeting Place for ESL/EFL Teachers from Around the World!"
 
 FAQFAQ   SearchSearch   MemberlistMemberlist   UsergroupsUsergroups   RegisterRegister 
 ProfileProfile   Log in to check your private messagesLog in to check your private messages   Log inLog in 

Pension Contribution calculations Income vs Average Wage ...

 
Post new topic   Reply to topic    Korean Job Discussion Forums Forum Index -> Job-related Discussion Forum
View previous topic :: View next topic  
Author Message
gerald.in.korea



Joined: 15 Oct 2007

PostPosted: Tue Sep 26, 2017 12:49 am    Post subject: Pension Contribution calculations Income vs Average Wage ... Reply with quote

Pension contributions are based upon all income received by the employee. So any Housing Allowance, car allowance, Mc Kim Bap allowance that is received as cash that is to be paid to the employee is used for the calculation of the Pension contribution required to be made by the employer and the employee.

The current Pension contribution rate is 4.5% for each the employer and employee.

Housing Allowances/Housing MAY become part of the Ordinary Wage and Average Wage calculation (used in Severance calculations etc) but it would have to be applied uniformly and regularly. Generally speaking, in the event that the housing allowance is only for "Foreign Workers" then it is considered a voluntary welfare benefit the employee is receiving and, while part of Income used for Pension Calculations, is not considered for the determination of the Average Wage or Ordinary Wage calculations.

Airfare is considered an Expense that the employer incurs (like buying a desk) and since it is a one time "fee" that is paid it is not considered part of Income for the purposes of calculating Pension.
Back to top
View user's profile Send private message
PRagic



Joined: 24 Feb 2006

PostPosted: Thu Sep 28, 2017 7:35 pm    Post subject: Reply with quote

Good input. There was a case at a major university a long time ago, over ten years ago at least. The university had been paying pension contributions on the regular 'salary' only. In reality, the 'salary' was about half the income received, with the other half paid as a 'research fund'. They also had not been including paid work affiliated within the same university (e.g. teaching a class in the unigwon or editing).

One of the outgoing teachers took them to court and won, thus changing the system for good. Of course, the kicker was that the university then turned around, offered severely reduced pay for ESL teachers, and created term limits! Everyone left. Everyone.

So I guess you can win some battles, but then there's the whole war thing.
Back to top
View user's profile Send private message
gerald.in.korea



Joined: 15 Oct 2007

PostPosted: Thu Sep 28, 2017 9:58 pm    Post subject: Battles vs Wars Reply with quote

It is always a balance between what people need and what people want and there is always a "point counter point".

I actually remember the case you are referring too but the knock on effect was that KangNam Labor Law Firm was able to use the ruling to then force mediated settlements with a number of other employers who were pulling the same monkey business.

While the next hires in that company had adjustments to their contracts there were so many other people who were not employees of that company that then benefited from the ruling.

It turns into that issue of the "greater good" the "common good" and the "where's my money".

Cheers
Back to top
View user's profile Send private message
Display posts from previous:   
Post new topic   Reply to topic    Korean Job Discussion Forums Forum Index -> Job-related Discussion Forum All times are GMT - 8 Hours
Page 1 of 1

 
Jump to:  
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum


This page is maintained by the one and only Dave Sperling.
Contact Dave's ESL Cafe
Copyright © 2016 Dave Sperling. All Rights Reserved.

Powered by phpBB © 2001, 2002 phpBB Group

TEFL International Supports Dave's ESL Cafe
TEFL Courses, TESOL Course, English Teaching Jobs - TEFL International