Korean Job Discussion Forums

[danythegirl]

I have a question, I work an afterschool job. It is full time, and I am Canadian. After getting my first paycheque, I asked why there was no pension deduction. They said they don't pay pension.

Is this legal?

Should I press the issue? To me if it's illegal not to pay it, I want them to pay it. I don't want them to rip me off.

And if I make it an issue do you really think I could jepordize my job?

[jangsalgida]

Yes, you could lose your job depending on whether and/or how much you press it. You probably get paid a good buck, wait until your contract is over and paid your last payment(they probably won't resign you), then go to the labor office for severance, pension office for pension, and the tax office to file your taxes.

[expat2001]

[Easter Clark]

If I were you I would take a trip to the pension office, bring your employer's information as well as your ARC and ask them if your employer has to pay into pension. Be sure to make it look like you're confused and just want to straighten everything out, "so you don't get in trouble." They can call your school and set them straight if indeed they need to be paying into your pension.

If you think it will jeopardize your job (and it shouldn't), then you have to ask yourself which is more important: possibly being responsible for 12 months' pension back-pay (1m won +) or not being able to bring home an extra 2m won at contract's end in order to earn a good salary; or finding something legitimate that may pay less.

At any rate, I would most certainly not wait until your contract is over. This needs to be cleared up immediately.

[xCustomx]

If you are paying into the pension and your boss isn't, then he's probably just pocketing the money himself. If neither one of you are paying then you're actually losing about 1.1million won over the course of a year.

[danythegirl]

They are not deducting anything, but I want them to obviously. I want to get the extra money at the end of the year. So I guess basically I should go to a pension office with my info and see what they have to say?

If my school gets called on it because of me, am I out of a job???

[bellum99]

Better to know now that they are scum than wait until the end. If you don't deal with it now then they will for sure get away with it and you will be out money.

[chachee99]

from my understanding, if there are 5 or more full time employees at the place then the owner MUST contribute to the pension plan. However, if there are fewer than 5 then pension is optional.

If you are getting screwed over bring this up to your employer immediately because they will not change their ways! If your employer refuses to contribute to the pension plan then threaten to take the matter to the labour board. In most cases when it comes down to that your employer will usually cave. If that happens make sure they retro your pension all the way back to your first paycheck. If any quarrels arise contact the labour board immediately.

You may not be liked by your boss, but you will definitely gain a lot of respect.

[Jellypah]

[garykasparov]

1> http://www.nps.or.kr/
2> Click on English
3> Click on National Pension Scheme And Foreigners

NATIONAL PENSION SCHEME AND FOREIGNERS

Foreigners and Coverage

At the time of the introduction of the Scheme, foreigners were not mandatorily covered. Only foreigners working in a workplace covered under the Scheme could be covered as an Workplace based Insured Person by submitting an application.

Foreigners working at the workplace with 5 or more 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. But foreigners falling under any of the following items are excluded from the coverage.

- Those whose country does not mandatorily cover Korean citizens under its pension scheme.

=> Under this rule, only the nationals from 17 countries※ do not have to enroll and pay the NPS contributions.

※ the Republic of South Africa, Nepal, Maldives, Nyanmar, Bangladesh, Vietnam, Saudi Arabia, Armenia, Ukraine, Ethiopia, Iran, Egypt, Tonga, Pakistan, Fiji, Cambodea, Singapore

- Foreigners who are not registered under the Immigration Act, or to whom the forced deportation order has been issued under the same Act, or who are staying in Korea without being permitted to extend their term of stay.

- Among the registered foreigners under Immigration Act, those whose stay status falls under any of the followings; culture & art, studying abroad, industrial training, general training, religion, visiting & living
together and others.

- People excluded from the mandatory coverage of National Pension Scheme, by the social security agreement.

Foreigners and payment of Lump-Sum refund

Foreign Insured Persons under the National Pension Scheme are equally treated as the national Insured Persons. For example, there is no discrimination in terms of the benefit amount and remitting benefit abroad, etc. But there is a certain distinction in regarding Lump-sum Refund. In principle, Lump-sum Refund is not paid to foreigners leaving Korea after having been covered under the Scheme. But, in the case of foreigners falling under any of the following items, Lump-sum Refund is paid.

- People whose country grants Koreans a benefit corresponding to Lump-sum Refund under the National Pension Scheme.

=> Under this rule, only the nationals from 29 countries※ may receive the Korean lump sum refund.

Please refer to Article 102 of the National Pension Act and Article 85-3 of the Enforcement Decree of the National Pension Act.

※ Venezuela (if completed at least 24 months of periods of Contributions) ; Grenada, Nigeria, Barbados, Saint Vincent and Grenadines, Zimbabwe, Cameroon, Congo, Tahiland, Togo(for the 9 countries above, if completed at least 12 months of periods of contributions) ; Belize (if completed at least 6 months of periods of contributions) ; Ghana, Malaysia, Bermuda, Sudan, Sri Lanka, Switzerland, El Salvador, Jordan, India, Indonesia, Kazakhstan, Kenya, Trinidad and Tobago, HongKong, Turkey, Colombia, Philippines, Vanuatu ; (as of January, 2007)

- People whose home country has concluded a social security agreement with Korea to secure benefit rights by combining the insured period in each country.(Refer to "Social Security Agreement")

※ As of June 2007, Canada, The U.S., Germany, Hungary, France

- A person who is employed at the workplace covered by the National Pension Scheme as a foreign worker stipulated in [The Act on the Employment, etc. of Foreign Workers]

=> status of stay E-9(Non-professional employment) or H-2

- A person who is employed at the workplace covered by the National Pension Scheme as a person who has status of sojourn eligible for doing industrial trainee activities and doesn't desert designated training places during required training period under [Immigration Control Act]

=> status of stay E-8(Employment for training)

Procedures on How can a Foreigner Apply for a Lump-Sum Refund
(If you are a national from non-contracting states)

- If you reside in Korea

You should visit a regional office, having the following documents ready

< Required documents >

- An Application for Korean Benefits (The form is ready at the regional offices.)
- a copy of your ID card
- your local bankbook.
- A copy of an airline ticket. (the date of departure has to be in less than a month from the date of the claim)
- If you are insured under the other public pension schemes, a certificate of employment and a copy of a certificate of coverage should be presented.

- If you reside overseas

A claim can be made by an agent or mail.

(1) In case of a claim by a relative living in Korea

※ the legitimate scope of relatives: spouse, lineal ascendants or descendants , siblings, parents in law, spouses of lineal descendants, siblings in law.


< Required documents >
- An Application for Korean Benefits
- A hand-written letter of attorney
- A copy of your passport
- A family register document confirm a relative's relations.
(※ It will be attested by the korea embassy.)
- An ID card of an agent
- A copy of an agent's or your local bankbook (if you apply for overseas remittance - Application For Overseas Remittance and a bank statement or void check which shows your name and account number are required)

(2) In case of a claim by attorney in a foreign country

In case that you reside in a foreign country, you may apply for the benefit by notarizing your letter of attorney in the country and it will be attested by the korea embassy.


< Required documents >

- A letter of attorney should be notarized from a notary's agency of the country in which you reside and it will be
attested by the korea embassy.

※ You should make it clear that you intend the agent(Resident registration number, Full name, Address, etc.) in Korea to receive your lump-sum refund behalf of you in a letter of attorney in which your stamp or signature appear.

※ An agent living in Korea who has received the letter of attorney and the document above should get their Korean-translated texts notarized again so the letter's contents

- A copy of your passport

(3) In case of a claim by mail in a foreign country

< Required documents >
- An application of attorney should be notarized from a notary's agency of the country in which you reside and it
will be attested by the korea embassy.
- A copy of your local bankbook(if you apply for overseas remittance - Application For Overseas Remittance and
a bank statement or void check which shows your name and account number are required.)
- A copy of your passport

[danythegirl]

So basically, if my country is included in countries who pay pension for Koreans, and mine is, Canada, and if there are more than 5 or less than 5 lol, my company should be paying.

My company employs about 40 teachers, at various schools teaching after-school programs. So I have never met any of these other teachers, have no idea what their deal is. They don't pay their Korean employees pension either, I asked my co-teacher.

I emailed my company about 4 days ago, asking whether the situaiton was legal, but of course, they haven't replied. I get the feeling they are no too impressed by my question.