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marlow
Joined: 06 Feb 2005
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 Posted: Sun Sep 07, 2008 4:55 pm Post subject: Severance Law: Base Salary vs Gross Salary |
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Does severance get calculated on the base salary average of the final three months or on the total monetary payments to employee from the employer for work done during the final three months?
Specifically with EPIK the employer is the city office, so some of my work is outside the school. Also, some of my work is overtime within the school. The school has failed to calculate these. What's up? |
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Ramen
Joined: 15 Apr 2008
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| Posted: Sun Sep 07, 2008 5:11 pm Post subject: |
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| My understanding is the gross salary. It's calculated based on whatever you've earned including overtime. |
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KoreanAmbition
Joined: 03 Feb 2008
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| Posted: Sun Sep 07, 2008 7:15 pm Post subject: |
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| My university follows the same rules as the above poster. It's calculated on your total annual income. |
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marlow
Joined: 06 Feb 2005
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| Posted: Sun Sep 07, 2008 11:01 pm Post subject: |
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| Quote: |
Chapter IX Rules of Employment
Article 96 (Preparation and Submission of Rules of Employment)
An employer ordinarily employing more than ten workers shall prepare the rules of employment concerning the following matters and submit it to the Minister of Labor. If any amendment to the rules of employment occurs, the same procedures shall also be taken:
* 1. matters pertaining to the starting and finishing time of work, recess hours, holidays, leaves and shifts;
* 2. matters pertaining to the determination of wages, calculation of wages, means of payment, closing of payment, time of payment and wage increase;
* 3. matters pertaining to calculation of family allowances and means of payment;
* 4. matters pertaining to retirement;
* 5. matters pertaining to retirement allowance, bonuses and minimum wages;
* 6. matters pertaining to meal allowance and expenses of operational tool or necessities and other expenses;
* 7. matters pertaining to education facilities for workers;
* 8. matters pertaining to safety and health;
* 9. matters pertaining to support for occupational or non-occupational accidents;
* 10.matters pertaining to award and punishment; and
* 11.other matters applicable to all workers of the business concerned. |
Does this mean employers set their own rules? Especially EPIK? |
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crescent
Joined: 15 Jan 2003
Location: yes.
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| Posted: Mon Sep 08, 2008 3:05 am Post subject: |
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^
It means that an employer must submit it's rules to the Ministry for approval.
Regarding severance; labor law states it is calculated as an average of the final three months of employment (total earnings). |
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marlow
Joined: 06 Feb 2005
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| Posted: Mon Sep 08, 2008 4:43 pm Post subject: |
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| I spoke directly with the labor board, and they said it's the final three months' average of all job earnings. This includes base salary, overtime, and bonuses (although bonuses are divided by twelve before being added on monthly). I asked them to clarify further, and they did so, repeating the same in no uncertain terms. |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Mon Sep 08, 2008 7:25 pm Post subject: |
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| marlow wrote: |
| I spoke directly with the labor board, and they said it's the final three months' average of all job earnings. This includes base salary, overtime, and bonuses (although bonuses are divided by twelve before being added on monthly). I asked them to clarify further, and they did so, repeating the same in no uncertain terms. |
Labor Standards Act http://english.molab.go.kr/data/LaborStandardsAct.pdf
Employee Retirement Benefit Security Act http://english.molab.go.kr/data/EmployeeRetirementBenefitSecurityAct.pdf
The definition of wages and "average wages" are found in article 2 of the labor standards act.
These are referenced by the "Employee Retirement Benefit Security Act" (article 2, sub 3 and 4) as the definition used for the calculation of the severance [article 8 ].
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spliff
Joined: 19 Jan 2004
Location: Khon Kaen, Thailand
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| Posted: Mon Sep 08, 2008 11:20 pm Post subject: |
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So, if I understand this thread correctly for severance i should receive.
base salary
rural allowance
overtime (last three mo's averaged)
severance divided by 12
Add these all up and that should be severance payment.
Also, what about employer matching monthly national pension payments? Do they get calculated into the severance figure? It is income. |
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marlow
Joined: 06 Feb 2005
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| Posted: Mon Sep 08, 2008 11:46 pm Post subject: |
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| spliff wrote: |
So, if I understand this thread correctly for severance i should receive.
base salary
rural allowance
overtime (last three mo's averaged)
severance divided by 12
Add these all up and that should be severance payment.
Also, what about employer matching monthly national pension payments? Do they get calculated into the severance figure? It is income. |
I don't think they can pay you severance for severance, since you get paid that after the final three months. Pension? I'm sure it is excluded somehow. But, the links are fantastic. It really spells it out. Thanks ttompatz. You definitely get rural allowance according to the rules spliff. |
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spliff
Joined: 19 Jan 2004
Location: Khon Kaen, Thailand
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| Posted: Tue Sep 09, 2008 2:03 am Post subject: |
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^ I don't see why not. The law reads any income are wages regardless of what they call it. I figure you'd be entitled to 1/12.  |
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Fat_Elvis
Joined: 17 Aug 2006
Location: In the ghetto
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| Posted: Tue Sep 09, 2008 5:16 am Post subject: |
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| My understanding is that it's all taxable income paid by the employer, not sure if employer matching pension payments count as that but definitely overtime, bonuses etc |
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Young FRANKenstein
Joined: 02 Oct 2006
Location: Castle Frankenstein (that's FRONKensteen)
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| Posted: Tue Sep 09, 2008 3:37 pm Post subject: |
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| spliff wrote: |
| what about employer matching monthly national pension payments? Do they get calculated into the severance figure? It is income. |
Yes, but it's income you're not supposed to see until you're 65.
No, pension contributions are not part of severance calculations.
total base salary in the last three months +
total overtime in the last three months +
total stipends and extras (eg. rural allowances) +
yearly bonuses (divided by 4)
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add it all together and divide by three |
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Ramen
Joined: 15 Apr 2008
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| Posted: Tue Sep 09, 2008 4:14 pm Post subject: |
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| How about multiple school travel allowance? |
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spliff
Joined: 19 Jan 2004
Location: Khon Kaen, Thailand
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| Posted: Tue Sep 09, 2008 4:26 pm Post subject: |
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| If you read the labor document you'll see that any money you get from your employer is considered wages, no matter what they call it. So it should be figured in. |
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spliff
Joined: 19 Jan 2004
Location: Khon Kaen, Thailand
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| Posted: Wed Sep 10, 2008 10:09 pm Post subject: |
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My school figured my severance w/out including the actual severance divided by 12 into the figure. Who do I need to contact to tell them how to figure it correctly? Can anyone help me w/ a phone number?
Cheers
~Splifff |
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