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trubadour
Joined: 03 Nov 2006
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 Posted: Tue Apr 17, 2007 10:22 pm Post subject: Do I have to pay into a pension? |
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The director of the hakwon has just told me that someone from the local government has just been on the phone saying something about 10% tax on my income for a pension. The director apparently doesn't undersand why I have to pay being not from round 'ere and all that.
I'm over 6 months into my contract. Despite not being very good at maths, I've a feeling I could be facing a rather large bill. The director has told the woman from the government to come around and 'convince me' that I need to pay. What's my choice? |
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sjk1128
Joined: 04 Feb 2005
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| Posted: Tue Apr 17, 2007 11:04 pm Post subject: Where from? |
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As I understand it, you should be paying 4.5 % into the pension fund each month. Those funds are matched won for won and may be refunded to you when you leave Korea (depending on your nationality). I'm from the US and got a refund of 200 % what I paid in last year before returning for a new contract. Assuming your country has an agreement regarding pensions that allows you a refund, it's a sweet deal.
Good luck. |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Wed Apr 18, 2007 12:34 am Post subject: Re: Do I have to pay into a pension? |
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| trubadour wrote: |
The director of the hakwon has just told me that someone from the local government has just been on the phone saying something about 10% tax on my income for a pension. The director apparently doesn't undersand why I have to pay being not from round 'ere and all that.
I'm over 6 months into my contract. Despite not being very good at maths, I've a feeling I could be facing a rather large bill. The director has told the woman from the government to come around and 'convince me' that I need to pay. What's my choice? |
The tab for your pension is ~9% and your boss should be paying 1/2.
You are about to get screwed. |
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trubadour
Joined: 03 Nov 2006
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| Posted: Wed Apr 18, 2007 1:04 am Post subject: |
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Thanks for the advice. My country doesn't have a refund deal.
I've a feeling they are about to try and screw me over. I'm going to wait for the woman and say that my boss should pay half. It seems to be my only hope. Nothing about it in my contract though.
Funny how they apparently don't know about it after being in business for years.
I reckon they might be up for getting rid of me after 8 months of service, so as not to stand my the bonus, etc. They can easily blame it on fickle waygooks or whatever. |
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trubadour
Joined: 03 Nov 2006
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| Posted: Thu Apr 19, 2007 3:05 am Post subject: NEWS FLASH |
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NEWS UPDATE - THIS ONE'S FOR THE RECORD
my boss told me that this is new legislation and that they haven't had to do it before. I don't know how new this legislation is.
But they cut a deal with the tax man and have got me on the lowest pay scale possible (instead of what my actual income is) and are paying half. They swung it because his son used to be in one of my classes.
Got to give 'em credit for sorting it in an aggreeable way.
I didn't want to believe them and was already feeling shit about it. But they NEWS FLASH weren't trying to con me! |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Thu Apr 19, 2007 4:12 am Post subject: Re: NEWS FLASH |
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| trubadour wrote: |
NEWS UPDATE - THIS ONE'S FOR THE RECORD
my boss told me that this is new legislation and that they haven't had to do it before. I don't know how new this legislation is.
But they cut a deal with the tax man and have got me on the lowest pay scale possible (instead of what my actual income is) and are paying half. They swung it because his son used to be in one of my classes.
Got to give 'em credit for sorting it in an aggreeable way.
I didn't want to believe them and was already feeling *beep* about it. But they NEWS FLASH weren't trying to con me! |
Ya, it's very new... NOT
Foreigners working at the workplace with more than 5 full-time employees were included in the mandatory coverage in August 1995 and those working at the workplace with less than 5 employees including self-employed foreigners were also included in the mandatory coverage in April 1999. Accordingly, foreigners aged from 18 to less than 60 who reside in Korea must be, in principle, covered under the Scheme
http://www.nps4u.or.kr/eng/enpsk.html?code=./enpsk/a06.html |
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trubadour
Joined: 03 Nov 2006
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| Posted: Thu Apr 19, 2007 6:49 am Post subject: |
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Thanks very much for your help and the useful information.
I do think it is neccesacary to say it does seem that they are innocent of trying to rip me off, even if they really didn't know or aren't telling the truth. It's a small town and a small hagwon and he was a small tax guy...
Serious thanks, nonetheless. |
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igotthisguitar
Joined: 08 Apr 2003
Location: South Korea (Permanent Vacation)
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| Posted: Sat May 05, 2007 1:00 am Post subject: |
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Most employers WILL deduct pension from your cheque, however, no gov't records will ever exist.
i.e. Most are in the end never credited the bulk of their pension "deductions" (employers simply "pocket" this)  |
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Whistleblower
Joined: 03 Feb 2007
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| Posted: Sat May 05, 2007 2:00 am Post subject: |
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| igotthisguitar wrote: |
Most employers WILL deduct pension from your cheque, however, no gov't records will ever exist.
i.e. Most are in the end never credited the bulk of their pension "deductions" (employers simply "pocket" this) |
So how can you get proof that you contributing to a pension? Is there any card you have or do you phone up the pension office and give them your ARC number to find out?
I am curious. |
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babtangee
Joined: 18 Dec 2004
Location: OMG! Charlie has me surrounded!
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| Posted: Sat May 05, 2007 2:18 am Post subject: |
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| Contact the pension office and ask them if you are registered. If they find you are not, and you are employed, they will want you to be. They will contact your boss and as him, "WTF?!" |
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goodgood
Joined: 22 Nov 2006
Location: seoul
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| Posted: Sat May 05, 2007 2:19 am Post subject: |
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| igotthisguitar wrote: |
Most employers WILL deduct pension from your cheque, however, no gov't records will ever exist.
i.e. Most are in the end never credited the bulk of their pension "deductions" (employers simply "pocket" this) |
I think it's good to be aware this can be a problem, but to say that "most" pocket the pension is not fair and not true. "Some" would be much more appropriate. |
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igotthisguitar
Joined: 08 Apr 2003
Location: South Korea (Permanent Vacation)
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| Posted: Sat May 05, 2007 2:53 am Post subject: |
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It's criminal fraud.
No prosecution, ZERO accountability. Surprised?
If they can get away with stealing our money, as has been shown to do it time & time again, they will.
Very "cunning". |
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alabamaman
Joined: 25 Apr 2006
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| Posted: Sat May 05, 2007 6:27 am Post subject: |
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| trubadour wrote: |
The director of the hakwon has just told me that someone from the local government has just been on the phone saying something about 10% tax on my income for a pension. The director apparently doesn't undersand why I have to pay being not from round 'ere and all that.
I'm over 6 months into my contract. Despite not being very good at maths, I've a feeling I could be facing a rather large bill. The director has told the woman from the government to come around and 'convince me' that I need to pay. What's my choice? |
The woman "from the government" will be another family member or friend who doesn't work for the government. It's your directors job to use every trick in the book to avoid paying 50% of the National Pension Plan (approximately 4.5% of your monthly salary).
1) Consult with your director on Monday to resolve the matter in a tactful way.
2) When you sit down and talk with your director hand this letter to her:
Director Name
Job Title
School Name
School Address
On month day, year I spoke with an English speaker at the pension office about the Korean Pension Plan and English Teachers. The English speaker at the pension office told me:
(1) Foreigners working at the workplace with more than 5 full-time employees were included in the mandatory coverage in August 1995 and those working at the workplace with less than 5 employees including self-employed foreigners were also included in the mandatory coverage in April 1999. Accordingly, foreigners aged from 18 to less than 60 who reside in Korea must be, in principle, covered under the Scheme.
(2) The number is 1355 if your employer has questions.
Date
Your Name
Your Signature
Last edited by alabamaman on Sat May 05, 2007 9:35 pm; edited 2 times in total |
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Young FRANKenstein
Joined: 02 Oct 2006
Location: Castle Frankenstein (that's FRONKensteen)
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| Posted: Sat May 05, 2007 5:58 pm Post subject: |
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| trubadour wrote: |
| I do think it is neccesacary to say it does seem that they are innocent of trying to rip me off, even if they really didn't know or aren't telling the truth. |
Didn't know? Of course they know. They're lying about the situation and they are lying about the "solution" to the situation.
Ripping YOU off, no. Breaking the law, yes. He is UNDER-REPORTING your income. That's tax fraud and breaking pension laws. And while he may not be ripping you off (you don't get the pension back because of your nationality), if he is caught, you will be held accountable for the missing money.
Get on top of this, or you may get a nasty surprise some time in the future. |
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