Korean Job Discussion Forums

[Chamchiman]

I know the pension contribution is 4.5%, but I thought it was calculated on gross income. My school says no.

They told me that income tax doesn't actually kick in until an earnings level of around 8 million or so, which brings my total taxable income down to around 20 million for the year. It's this non-taxable income that is used for the 4.5% calculation. (As a result, my total pension contribution is around 60,000 per month lower than I thought it would be.)

Is this correct?

Thanks.

[Teachurrrr]

It doesn't sound correct to me. There may be a better way to handle this, but one way is to have a Korean friend or someone who speaks Korean call 1355 (National Pension Office) on your behalf.

Try to get the address and phone number of your local Pension Office. Go there (with Korean friend would be most helpful). Write your situation/questions on a piece of paper and give it to them. Include the phone number of your place of employment.

The Pension officer will tell you what is correct. I would think he or she would also call your hagwon to inform them of the proper procedure. If not, ask the person at Pension for a short letter (Han Gul Mal) explaining the correct procedure of deduction so you can take this to your employer. Make sure you keep a copy.

After the next pay period, if this is not cleared up to your satisfaction, recount the events on paper, gather your copy from pension and go to the Labor Board. One way or the other, they will have to make the proper deduction and meet that contribution. Good luck!

[Ramen]

Your boss or who ever in charge of finance is on drugs.

Pension deduction must be made on gross income before any other deductions. 4.5% from your gross income and 4.5% contribution from your employer, 9% total.

Like the other poster said, contact NPS and get it straightened out.

[esetters21]

Hakwons are notorious for underpaying pension (if they do at all in many instances). My old school did everything in the book to save themselves money with employee pension, taxes, HC, etc...(under paying pension, over charging me for taxes and HC) They were paying those things but not correctly. I called them out on each of things after getting the info that I needed from the proper public offices. I'd do as others suggested and get it straightened out with NPS.

[ttompatz]

In your FIRST year of a contract your pension contribution is based on your gross salary (since this is your taxable salary) and you have no deductions or settlement to reduce it.

In your 2nd and subsequent years your GROSS SALARY calculation is reduced by ~30% and your pension and tax contributions are based on the settlement from the previous year.

Hope that helps a bit.

You can get specific information from the pension office (tel: 1355).
http://www.nps.or.kr/jsppage/english/main.jsp

.

[yingwenlaoshi]

[ttompatz]

[yingwenlaoshi]