Joined: 15 Oct 2007
|Posted: Thu Sep 21, 2017 9:21 pm Post subject: RE: Basic Pension, Health and Tax resources for Korea
|National Pension and National Health care contributions.
The mandatory employee National Pension contribution is 4.5% of the Standard Monthly Income and that is required to be paid if the Pension contribution requirement is not waived by International Treaty or by exemptions contained within some international treaties.
As for Health Insurance, the contribution to be made by the employee is 3.06% of the Standard Monthly Income. It is possible for the Employer to have the employee registered with an equivalent Health Insurance provider but the alternative provider has to be Government Approved really approved by NHIS.
As John Worth has pointed out before, the English Consulting Call Center phone number for NHIS is +82-33-811-2000. For National Pension Service service is available in multiple languages and they have multiple call centers and offices, the link follows: http://english.nps.or.kr/jsppage/english/main.jsp
The following link to NPS is for Foreigners Lump Sum refunds:
For Taxes, NTS has a very good interactive URL that enables you to calculate online the taxes owed for the last fiscal year (i.e. 2016), the contributions for Pension and Health are not stated but the dollar value can be entered. The reason being is that any rate increase in Pension or Health is in immediate effect where as Taxes are based upon Historical information.
The link for NTS is: http://www.nts.go.kr/eng/help/help_53.asp?top_code=H001&sub_code=HS05&ssub_code=HSE3#none
the above will (with luck) be ale to provide enough insight (in addition to the Labor Law Bible reference) to determine if you have unpaid wages owed to you or if your employer has paid you up to date.
With Holiday Pay, that is not covered by any of the NTS, NHIS or NPS websites and has to be verified manually and it will not be able to help you with overtime or other such items.
Really, for amounts of 500,000 KRW or less then using the MOL online filing for unpaid wages is the most practical and cost effective mechanism but there is a chance that Holiday Pay and O.T. adjustments may be missed and the O.T. can add up to 260 hours (if your contract has "10 minute break" language it is a red flag and it should be checked carefully) and the link to the MOL online e-filing system is:
From a very practical point of view, if the amount owed is small and the efilling results in the amount being awarded to you is small then there are usually no problems with payment by the Company. On the other hand, if the amount is larger than 500,000 KRW then the company will contest the amount usually because they will have a Labor Law Firm (or Law Firm) on retainer and are paying the retainer to have the claims challenged.
If you use the above information and websites, please ensure that you verify with National Pension that the contributions have actually been paid, that you have been truly registered with National Health and keep in mind the NTS data is really for the calculations of taxes for last year and will not have the current rates for Pension or Health.
If you use the efiling system, please remember that determination of Ordinary Wage is the first step and guidance on how to "translate" your contract to isolate the ordinary wage can be found in the Korean Labor Law Bible which can be found here: https://play.google.com/store/apps/details?id=com.kLabor.mhybrid
With luck the above can provide some basic insight for you.