Korean Job Discussion Forums

[Jellypah]

I won't revive my thread, but here it is from before: http://forums.eslcafe.com/korea/viewtopic.php?t=68992&start=0&postdays=0&postorder=asc&highlight=

Let me break it down: I've been working for my hagwon for almost 3 years. Last October was the 1st time I heard about pension, - neither of us have contributed - and after that learned about the proper rate I should be taxed at. I'd been paying (and have been paying since) 5%. I'm not registered at the tax office - to them, I've paid nothing.

I'll spare you all the back and forth, I've been going through a slow and quiet negotiation - and it's just all coming to a head seeing as my contract is up in about 3 weeks. They want me to stay for a fourth year.

My boss has finally agreed to give me 1/2 of my pension dues- minus 1/2 of the fricking health insurance I should have been paying - so she wrote down a figure of 90,000-20,000 = 70,000 x 18 = 1,260,000. She amazed me by agreeing to repay my taxes at 1.7% which means 1,224,000. Grand total 2,484,000. The moment she added the figure she rounded down to 2 million. I stuck my heels in at 2.l2 million. We're at an impasse over 200,000 - which I pointed out to her I've surely spent on the students in the last 6 months.

If I didn't like her, my students, and my job - I wouldn't have stayed this long. I'd rather not sick the tax and penison offices on her,...if I can avoid it. She's convinced that because they didn't "register" their (well known) franchise before Jan 2006 that they're not responsible for pension payments despite it's the law and in my contract. I've told her I'm quite sure if I show up at the pension office with my contributions (90,000 x 36) they'll come after her for hers, plus levy a hefty fine.

SO,...if I were to collect all my pension and my overpayment of tax, we're talking approx 5,400,000. If it turns out I get dinged for health insurance contributions, I'm still owed 3,780,000.

I hate settling for 2.2mil. I'm refusing 2 mil, but it's the start of bad blood.
What do you guys think?

[Homer]

Unless I am missunderstanding something here....your boss cannot just give you directly the pension money he or she did not pay into the pension plan.

Also, since you did not pay into the plan (you were supposed to) the government can ask you to pay what you owe (all 3 years) and your boss the same thing.

Then you could claim a pension refund....

If I understand correctly the rest of it you are negociating a backroom deal for your employer to pay you cash for pension you both did not pay. I find it strange that your employer would agree to discuss this with you as you described...unless they just want to save some money (i.e. the back payments on pension) but then why would they give you the same amount that they should have paid into the pension scheme? What do they win there except perhaps not paying the penalty for having failed to pay into the pension fund?

[Jellypah]

Just one more thing,...from my thread so far back (if you read it)- Grotto - whose advice I'd always considered quite excellent, posted "The ship has sailed and you're wondering how you can get on it."

Everytime I thought of that statement since then, it bugged me. As if the Korean law of what's owed to you was some fleeting thing that if you didn't grab onto intitially it might pass you by and TOO BAD, SO SAD.

And that ties into a current thread by Ianinilsan and the use of the word "ignorant." I completely understand what he meant. I'm not stupid,...I've travelled and taught in a few countries, but when I signed my contract at 5% tax I had no idea what the real rate was. (I thoght 5% was a steal!) I cop to being absolutely ignorant,...and I didn't learn what was what until I was over 2 and a half years here!

My boss blames me for my ignorance, but I keep telling her it's her job to know the law!

[Homer]

Regardless of if you knew or not what the law was....the government can still ask you for all 3 years of pension you did not pay. They can ask your employer as well.

You are supposed to pay each month into the pension plan and your employer is supposed to match that amount. It is not an either/or thing.

[Jellypah]

[Jellypah]

[wings]

I'm not in Korea right now, but I am in a similar situation. I am being screwed by my boss, but I don't want to stir up to much $hit as up until now things have been going really well and I generally like my boss.

But I realised that my being a good person and not wanting to cuase $hit is not helping me in any way. If my boss really were a good person he wouldn't be screwing me around. Sure, I understand, you think, well they are a good person. Guess what they are not, a good person won't try to screw you over. Your boss knows that you are a nice person and is trying to take advantange of that to save some money ( a lot of money) that is owed to you and to various government agencies. You need to remember this, evern if your boss has been generally a good person.

Be firm and DO NOT let your boss walk all over you. You don't need to do anything drastic, but giving her fair warning that you are going to visit the pension office with your contribution and inform them about the situation is not out of line at all. Telling her that you would like to resign, but only after you are paid everything you are owed is more than resonable I would say.

If you had a pretty good friend who owed you a few thousand dollars and didn't want to give it to you I imagine it would cause some serious friction, why would you allow your boss to get away with something like this?????

[wylies99]

OP- No deals. Go to the pension office and get what you have earned. You will have to pay into the system, but you'll get it back, when you leave Korea, if you are from the US or Canada.

[bobbybigfoot]

I"m curious. What else has your boss screwed you over on? Have you ever been paid severance? Do you know what that is?

[ttompatz]

To the OP..

Just remember that the:
Tax office
Pension office
NHIC

Can (and if they find out, WILL) all come after you at some point before you leave and require you to make back payments for EVERYTHING that is owed to them.

Also, you do realize that you have no medical should the need arise?

Do it the right way (make your back payments) and have your boss do the same. All it takes is a phone call to the respective offices to get the ball in motion.

Alternatively, take your 2.2 mil, finish this contract and instead of a renewal, make a visa run and get a NEW visa. This will restart the clock for medical and pension. Make sure the boss uses the 450k won that she didn't pay you to pay for the visa run.

[jinju]

Whatever you do, DO NOT let your boss get away with this. Do the rifht thing, go to the varius offices and turn her in. Pay the money. It will be a lot but you can get it all back, AND MORE! Your boss is not nice. She tried to cheat you, and when you called her on it, is still trying to cheat you. Sick the agencies on her. She deserves it.

[Tokki1]

[poet13]

"She's saying that she's been told by the pension office that's okay since they didn't register the company before 01-2006."

I would bet dollars to brand new cars that she didn't call, and they never said any such thing. Typical Korean imagination. Per what ttompatz said, they catch up to you, they're gonna want their money....even if you do get a bunch back.

Here's to think about...
You will owe 3 years medical (2.24%?). It's retroactive to the start of employment.
You will owe 3 years taxes (1.6-2.0%?). That's retroactive too.
You will owe 3 years pension (4.5%). Retroactive to make it a tri-fecta.

The only thing you get back is pension (+4.5% from employer) if you're from the US or Canada, and perhaps some tax refund with the right deductions.

I don't know about fines...

[wylies99]

Talk to the pension office, yourself. Why believe a proven hogwan cheat?

[Jellypah]

Thank you for the replies.

Bigfoot -- yes, I know what severance is, and yes - I've collected mine twice in the past.

Ttompatz -- if the Holy Trinity of deductors came after me that'd be an okay thing - I'd pay up and get more out of the deal anyhow. And the new visa is an excellent idea.

I'll see what's shaking today. I'd like for this all to be settled. I do appreciate all your input, thank you again.