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mooncalf
Joined: 30 Jan 2006
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 Posted: Tue Apr 10, 2007 11:45 pm Post subject: Super Throny NHI / Pension Question |
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Hey Everyone!
I just got my first paycheck last week and everything seemed on the level . . . except for one thing:
My contribution to NHI and National Pension contributions were doubled.
It did not state (as I expected it would):
National Health Insurance - W47,700
National Pension - W88,650
Instead, it stated:
National Health Insurance - W47,700 x 2 = W95,400
National Pension - W88,650 x 2 = W177,300
(Note: the above rates apply to my W2,000,000 per month contract.)
So, I asked my boss about this. He said that I was paying for both February and March NHI and Pension. The reason for this "double payment" is that the government does not pro-rate NHI and Pension contributions based on the date you start working. So because I started working in late February, I need to pay NHI and Pension for the whole month of February.
Note #1: I did, in fact, work three days in February. But I did not recieve an official paycheck for that month, I just recieved an envelope with some bills. No taxes, NHI or NP were taken out of that February payment.
Note #2: I have asked my boss for reciepts from the NHI and Pension offices that certify that they have indeed received my contributions (as well as my boss's matching contributions) for both February and March. He said it would be no problem, and said he would have the company accountant do it this week.
Note #3: Given all the above, IF my boss is being honest, am I right in thinking that the additional contributions will benefit me in the long run? After all, I paid an extra W47,700 to NHI, but I will get an extra W88,650 back in my pension when I leave Korea. That's an extra W40,950 in my pocket, right?
So, please tell me if this is right or not. Has it happened to anyone else? If not, please let me know how your work delt with your mid-month start date when it came to NHI and Pension?
Many Thanks! |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Wed Apr 11, 2007 12:16 am Post subject: Re: Super Throny NHI / Pension Question |
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| mooncalf wrote: |
Hey Everyone!
I just got my first paycheck last week and everything seemed on the level . . . except for one thing:
My contribution to NHI and National Pension contributions were doubled.
It did not state (as I expected it would):
National Health Insurance - W47,700
National Pension - W88,650
Instead, it stated:
National Health Insurance - W47,700 x 2 = W95,400
National Pension - W88,650 x 2 = W177,300
(Note: the above rates apply to my W2,000,000 per month contract.)
So, I asked my boss about this. He said that I was paying for both February and March NHI and Pension. The reason for this "double payment" is that the government does not pro-rate NHI and Pension contributions based on the date you start working. So because I started working in late February, I need to pay NHI and Pension for the whole month of February.
Note #1: I did, in fact, work three days in February. But I did not recieve an official paycheck for that month, I just recieved an envelope with some bills. No taxes, NHI or NP were taken out of that February payment.
Note #2: I have asked my boss for reciepts from the NHI and Pension offices that certify that they have indeed received my contributions (as well as my boss's matching contributions) for both February and March. He said it would be no problem, and said he would have the company accountant do it this week.
Note #3: Given all the above, IF my boss is being honest, am I right in thinking that the additional contributions will benefit me in the long run? After all, I paid an extra W47,700 to NHI, but I will get an extra W88,650 back in my pension when I leave Korea. That's an extra W40,950 in my pocket, right?
So, please tell me if this is right or not. Has it happened to anyone else? If not, please let me know how your work delt with your mid-month start date when it came to NHI and Pension?
Many Thanks! |
Sounds OK to me.
Your NHIC gets backdated to your entry into Korea on your E2.
Your pension is the same.
You pay the whole month for Feb even though you were only here for a few days (working or not).
You get his matching contribution to your pension for Feb. so you are money ahead. |
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yingwenlaoshi
Joined: 12 Feb 2007
Location: ... location, location!
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| Posted: Wed Apr 11, 2007 5:48 am Post subject: Re: Super Throny NHI / Pension Question |
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| ttompatz wrote: |
| mooncalf wrote: |
Hey Everyone!
I just got my first paycheck last week and everything seemed on the level . . . except for one thing:
My contribution to NHI and National Pension contributions were doubled.
It did not state (as I expected it would):
National Health Insurance - W47,700
National Pension - W88,650
Instead, it stated:
National Health Insurance - W47,700 x 2 = W95,400
National Pension - W88,650 x 2 = W177,300
(Note: the above rates apply to my W2,000,000 per month contract.)
So, I asked my boss about this. He said that I was paying for both February and March NHI and Pension. The reason for this "double payment" is that the government does not pro-rate NHI and Pension contributions based on the date you start working. So because I started working in late February, I need to pay NHI and Pension for the whole month of February.
Note #1: I did, in fact, work three days in February. But I did not recieve an official paycheck for that month, I just recieved an envelope with some bills. No taxes, NHI or NP were taken out of that February payment.
Note #2: I have asked my boss for reciepts from the NHI and Pension offices that certify that they have indeed received my contributions (as well as my boss's matching contributions) for both February and March. He said it would be no problem, and said he would have the company accountant do it this week.
Note #3: Given all the above, IF my boss is being honest, am I right in thinking that the additional contributions will benefit me in the long run? After all, I paid an extra W47,700 to NHI, but I will get an extra W88,650 back in my pension when I leave Korea. That's an extra W40,950 in my pocket, right?
So, please tell me if this is right or not. Has it happened to anyone else? If not, please let me know how your work delt with your mid-month start date when it came to NHI and Pension?
Many Thanks! |
Sounds OK to me.
Your NHIC gets backdated to your entry into Korea on your E2.
Your pension is the same.
You pay the whole month for Feb even though you were only here for a few days (working or not).
You get his matching contribution to your pension for Feb. so you are money ahead. |
Are you actually wrong this time? I think so.
Pension is 4.5% of your salary. You don't contribute 4.5% of a month's worth of salary in pension where you only worked 3 days. Same goes for health.
Pension and health start from the first day of employment. If your E2 started on February 27th then that's when it starts. You don't start paying those from the 1st of February. Impossible.
Another thing to consider is your contract. If your contract start date is March 1st then you shouldn't be contributing to any pension or health for February.
When did your contract start exactly? |
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alabamaman
Joined: 25 Apr 2006
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Wed Apr 11, 2007 6:10 am Post subject: Re: Super Throny NHI / Pension Question |
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| yingwenlaoshi wrote: |
Are you actually wrong this time? I think so.
Pension is 4.5% of your salary. You don't contribute 4.5% of a month's worth of salary in pension where you only worked 3 days. Same goes for health.
Pension and health start from the first day of employment. If your E2 started on February 27th then that's when it starts. You don't start paying those from the 1st of February. Impossible.
Another thing to consider is your contract. If your contract start date is March 1st then you shouldn't be contributing to any pension or health for February.
When did your contract start exactly? |
Premiums are often deducted based on your contracted monthly salary as per the tables supplied by the medical and pension plans.
They are NOT a fixed percentage of your salary (even though we would expect it to be that way in the west).
Medical IS deducted from the start of the 1st month you enter Korea on your work visa and is retroactive to your entry if there is a delay between your entry and your application.
He is still money ahead on the pension and medical is normal. |
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ontheway
Joined: 24 Aug 2005
Location: Somewhere under the rainbow...
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| Posted: Wed Apr 11, 2007 7:40 am Post subject: |
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Ttompatz is correct again.
Pension and insurance are NOT percentages as often misquoted here on Dave's. They are based on brackets. The percentages apply only to the midpoint of the bracket.
Pension and insurance are billed monthly for a fixed amount based on your reported earnings level. The billing rate is constant for each month unless some change is reported in your pay level. You should not pay any pension or insurance on your overtime pay.
Pension and insurance are billed in whole month increments so if you have reported earnings for only one day in a calendar month you will pay for the whole month. |
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yingwenlaoshi
Joined: 12 Feb 2007
Location: ... location, location!
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| Posted: Fri Apr 13, 2007 9:16 am Post subject: |
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| ontheway wrote: |
Ttompatz is correct again.
Pension and insurance are NOT percentages as often misquoted here on Dave's. They are based on brackets. The percentages apply only to the midpoint of the bracket.
Pension and insurance are billed monthly for a fixed amount based on your reported earnings level. The billing rate is constant for each month unless some change is reported in your pay level. You should not pay any pension or insurance on your overtime pay.
Pension and insurance are billed in whole month increments so if you have reported earnings for only one day in a calendar month you will pay for the whole month. |
Not convinced. Haven't seen proof of this. None has been provided. Just words. You earn your pension. Our salaries are monthly.
Wrong.
On another note, on the NHIC website, it clearly states that health coverage payments begin on the first day of employment.
I'd check again if I were both of you. |
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prairieboy
Joined: 14 Sep 2003
Location: The batcave.
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| Posted: Fri Apr 13, 2007 2:52 pm Post subject: |
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Believe what you want Ying. They are correct. Happened a few times at my company to new hires so we asked the accountant what was going on. If you work only one day in the month you apparently have to pay for the entire month's premiums for health and pension.
This is the reason why my company will not allow any new hires to start during the final week of the month. It's primarily an extra cost to the company, but it's also going to be a really significant deduction from the already reduced pay of the new employee.
And no, I can't supply links. I've been witness to this situation. Call the NHIC and NPC if you can't find the info on their websites.
Cheers |
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