Korean Job Discussion Forums

mmarshalynne · Joined: 23 May 2008

I just got my first pay receipt. There was a deduction of 9,900 won for unemployment tax. The receipt indicated that in the future I would pay an inhabitants' tax. I talked to another teacher there and she indicated she pays these every month and that she never questioned the issue because she trusts our hagwon boss. Are these standard deductions in addition to national pension, health insurance and income tax? I tend to think that I am just over analyzing an unimportant issue, but my inquiring mind wants to know.

cruisemonkey · Posted: Thu Sep 04, 2008 10:53 am Post subject:

You are not required to pay unemployment insurance premiums - you can never collect benefits.

At my first job in Korea, the school district deducted the standard UI premium from my first pay (they had never had foreign teachers before). I complained, and they refunded the money on the next month's pay (there were no further deductions). At my present job, they have never deducted UI premiums.

Teachurrrr · Joined: 21 May 2008 Location: Parts Unknown

I'm glad glad this topic was brought up again. From 2002-2006 (Hagwon and Uni), I had unemployment insurance (or social tax) deducted from my pay. The amount was so small, so I didn't bother. Yet, if I look at it now, that was 500,00 won of MY money.

I have been back for almost 3 months now working at a high school. They deduct this special "social" tax. Now, there is a new small deduction for my pay in August in which I plan to inquire about this morning.

I do not suspect the admin team of foul play. They just have the same deductions for me as they have for the Korean teachers.

Does anybody have or can suggest a contact to a government office (email address or phone number) to find out if foreigners have to pay these small "special" taxes or not?

I would like to resolve this issue once and for all (if possible). If it has to be paid (per Korean Law), then so be it. If it does not have to be paid, then I want the proof or contact to take to the admin team to stop these deductions.

Your help is appreciated. Thanks.

marlow · Joined: 06 Feb 2005

Teachurrrr · Joined: 21 May 2008 Location: Parts Unknown

Well, I talked with admin. This is the information I have thus far.

주 민 세 seems to be a Social Tax deducted at .0047% (previously .0045%)

장 기 요 양 보 험 seems to be a new Retirement Medical Insurance deducted (in my case) at .000972%. I was told this Insurance is new (Enacted in July, 2008) and it will reduce medical costs for retirees in Korea.

In total, I get nicked 9,020 won a month.

At least I now know what the deductions are. I still want to know what government office to contact to verify whether or not foreigners need to pay these. I will try to give the tax office a call maybe after Chuseok.

Thanks for the link Marlow.