Korean Job Discussion Forums

[camaroclow]

So I've heard conflicting stories about this subject. Direct from the site http://www.nps.or.kr/ under q and a it states that it is to be 4.5% by both you and your employer. It was explained by my VP yesterday that it is based on a percentage of your income. I am only paying about 45000 won a month which is about 2% of my 2.1 mill or 4.5 % of 1 mill. Does this make sense to anyone? Any links to info that would clairfy my case would be greatly appreciated so I can present my case in the near future to the VP. Thanks.

[poet13]

It should be about 9% total. Half by you, half by your employer. You should be paying almost 100,000 a month.

[KYC]

that's right mon...your pension should be around 95,000-100,000 won a month And that's only your end...

Are you sure 45,000 is your pension?

[CentralCali]

I wouldn't be at all surprised to discover that the OP's employer is reporting the wages at half the actual amount. If the full taxes are being deducted, care to guess where the excess money ends up?

[spliff]

The less you're paying the less your boss is and you're losing $ in the long run and he is saving. Sounds like he's reporting your salary as half of what you're making. Probably getting full dollar taxes and pay on half as well if he's even paying. I'd contact the pension office and tax office and notify them about this. seems to be an error on what you are earning and what's being reported. your boss will be glad you fixed the problem for him.

[garykasparov]

OP,

Is this at a public school or hagwon?

[camaroclow]

This is a hagwon. Honestly, they are great employers in every aspect so I wouldn't think that they are trying to screw me (but I do realize what country I am working in). So do you think the best bet would be to simply show them the site and ask for a full explanation? Also, to clarify, it is supposed to be 4.5% of the full 2.1 million, not 4.5% of a percentage of that. I read some other posts and info online that entertained the idea of we get 30% tax relief or something like that so it is not a 4.5% of the full salary. (sorry, that is a bit vague). Thanks.

[vdowd]

It is possible that they are under reported your income BUT I have just learned something (after 6 years here) about which income is reported.

The income required to be reported to NP and Medical is only the taxable portion of your income (or the prior year). That is your income less the 30% tax exempt portion according to Korean Tax services. It is buried in the Tax law.

So your employer only needs to claim your taxable income. Ex. Your income was 2.1M last year = 70% is taxable = so 1.47M is taxable = your 4.5% portion is 66,150 won = matched by employer 66,150 = total per month (9%) = 132,300 won. Does not matter hat you are know making 2.5M (unless it is your first year).

Many employers don't know this - also many employees only stay for 1 year and do not file taxes - so use 9%. Unfortunately, my employer does know this - less for me - and it sound like your employer may know it too - or is truly under reporting you.

Hope this helps.

V

[camaroclow]

Thanks for the help. I didnt want to go into battle knowing the wrong information. They are pretty sorted out so I take it they know what the deal is. I am only paying 45000 compared to 66500 what I should be paying so I will bring this to their attention as that turns out to be about 500000 by the end of year. Thanks again.

[buster brown]

Camaro, if I were in your shoes, I would go in and discuss the difference with them, but I'd never mention that 30% deduction. Any pension that you pay is just money in the bank...what benefits you is that your employer pays a little more, thus the amount you receive back from pension will be higher.

You say, "They are great employers in every aspect so I wouldn't think that they are trying to screw me." We usually refer to that as 'famous last words.' I'll be interested to hear how calmly they receive your helpful advice and what repercussions you'll have to deal with. Good luck.

[esetters21]

[xeno439]