Korean Job Discussion Forums

crescent · Joined: 15 Jan 2003 Location: yes.

I've just noticed that my Health Insurance premiums for April have skyrocketed to almost double what they usually are. Others, whom i work with have seen theirs almost halved this month.

I was told by the boss, that the Health Insurance corporation adjusts April's fees according to one's YEARLY income, because April is the final month of the tax year.
SO, if you've worked a whole year, as opposed to someone who's worked a few months, then your premium for APril will be much different.

Any truth to this???

crescent · Joined: 15 Jan 2003 Location: yes.

Really?

Fofazoju · Joined: 09 May 2006

I made the same post the other day. Something like "Health Insurance 158,000???"

I was given the same explanation by my admin ppl also, albeit in very broken English.

I have not however heard of anyone else having this one to them. Maybe ur boss and my boss went out for drinks that night Wink

Ah well. 4 more months and counting Very Happy

Kimchieluver · Joined: 02 Mar 2005

It happened to me too. 179,000. Apparently most years they don't have to do this, but some years they fall short and ding you for more.

crescent · Joined: 15 Jan 2003 Location: yes.

Do you know the exact reasoning behind why one pays more than usual, and another pays less.

Exactly how is this adjustment made? Was I correct in my OP?

dutchschultz · Joined: 01 Feb 2004

Two things happen in April regarding national health insurance.

First, your work tells the national health insurance company your yearly income for the present year. Based on the insurance tax rate (around 5.08%, which is split between you and your employer), they know how much your monthly deduction will be.

Second, they adjust for the previous year's payments. So if you company underreported your salary or overreported it, then an adjustment is made. That is the reason for the huge deductions in April.

I got hit for over 200,000, but I know that the salary reported for this year is much more accurate to what I actually make. That means next year it won't happen again.

If you have any questions, you can call the national health insurance company. They have people who speak English and will explain what salary is being used.

crescent · Joined: 15 Jan 2003 Location: yes.