Korean Job Discussion Forums

[yesman]

Okay, so at my old hagwan: (many thanks to those who replied, way back when, and helped convince me to leave: http://www.eslcafe.com/forums/korea/viewtopic.php?t=70135&highlight=)

(We eventually f�cked wonjong in his stingy, tightwad cornhole. He was hemorrhaging man-won notes from that little pooperhole.)

Life was terrible and my boss wasn't paying into national health or pension. At my new hagwan, life is different:

My new boss is a good man, and has been true to his word since day one.

At the outset I was wary from my last experience. I added an addendum to my new contract that stipulated my new boss provide both national health and pension. Now, he is proposing an alternative route. He wants to report my income to the government as 1,000,000 won per month, so that he (of course) will have to pay less pension costs every month.

I will pay less out of every paycheck for tax, health, and pension. But I did the math and in the long run and it seems to save us both money.

Okay, math:

****************************
2 Milliion contract:
Tax: 60,000
Heath: 48,000
Pension: 90,000
Minus 90,000 for the pension I collect on leaving...

-108,000 won every month from my paycheck
****************************
1 Million contract:
Tax: 30,000
Health: 24,000
Pension: 45,000
Minus 45,000 for the pension I collect on leaving...

-54,000 won every month from my paycheck
****************************

My only concern that I expressed to him was the possibility of getting in trouble for this.

Now it seems, the corruption could go my way. Good idea, bad idea, what do you seasoned professionals think?

[dam_on]

Hey yesman, I would say BAD idea. Reason is, you can file your income tax return at the end of the year and collect a good portion of those taxes back. My buddy collected almost $900 this year, and I got about $550 from 9 months work a year ago. So minus the taxes out...pension is all just forced savings which is a good thing. You want your boss to be paying in at the higher end for pension, which will more than make up for the increased health insurance cost. Americans and Canadians get the pension back, Australians will be able to from next year (from what I've heard on Dave's).

[IwalkAlone]

Don't know your nationality, but if you're north american, then your math is off. I would guess you are brit?

[yingwenlaoshi]

This good man is already stealing 30,000 Won from your taxes. Your taxes should only be about 30,000 (28,950 without residence tax and 31,845 with it).

Pension and health seem right, but it looks to me like new bossman is already going to pocket all that because...

...if you're salary is only 1 million then you'd owe no taxes. Not even sure what qualifications you'd have for pension on such a low salary. That might be ok. But health? I just wonder how you could have full coverage with paying so little into it. Anyway, I don't know about health and pension on a 1 million salary, but taxes are for sure ZERO.

Meet the new boss. Same as the old boss.

Haven't you learned anything yet? He has no plans on paying any of that. He only plans on pocketing what he deducts from you.

Sorry to poop on your party, but your new boss is a slime ball.

[lover.asian]

So he's proposing cheating his own government out of tax revenue and you believe he wouldn't cheat you, a foreigner.

Yes, that sounds reasonable.

[cruisemonkey]

Also... if you're elegible for a matching (your contribution plus the employer's) pension refund when you leave Korea, you're screwing yourself.

[ChuckECheese]

And don't forget the severance at the end of your contract. Your boss is only obligated to pay you 1 million severance if he choses to and you'll have no recourse.

You'll be losing out big time dude.

[bellum99]

When they have a "new" plan it is never good for you...always, always, always look for the screw over when you deal with a Korean. He will help you right out of your money. Make him do it legally or it will be you who regrets it later.

[TheUrbanMyth]

The above people are right. The boss could pay less severance only 1 million instead of 2 and there is nothing you can do about it.

Also pension, (4.5%) is much less on 1 million than on 2 million. The boss must pay a matching sum and you get it all (yours and HIS contribution when you leave Korea) if you are North American at least.

So basically you are just leaving yourself open to losing money and being screwed come month 12. But hey it's your decision.

[ttompatz]