Korean Job Discussion Forums

[linky123]

Do you get deducted for pension? If so, what percentage of your salary is deducted. Does your employer shoulder 50% of the contribution? Is this separate from the severance pay you will receive at the end of the contract?

Also, if you could, If your salary is 4mil, do you pay a different rate of tax than people who make around 2.4 mil?

[losing_touch]

Pension is 4.5% of your salary. This will be matched by your employer. The total should be 9%.

You can check what your tax withholding should be here: http://www.nts.go.kr/eng/help/help_52.asp?top_code=H001&sub_code=HS05&ssub_code=HSE2

[losing_touch]

Yes, it is NOT the same thing as severance ....

[big_fella1]

Pension and severance are different.

My employer is paying 4.5% of my taxable income.
As foreigners get a 30% tax break they pay 4.5% on 70% of my income and I pay 4.5% on 70% of my income.

Many Korean institutes claim that their employees (Korean and foreign) are business contractors and they don't have to pay pension or national health insurance.

Has anyone successfully fought being registered as a business contractor?

[linky123]

Apparently, for those with F series visa can choose to work as a contractor (usually the hourly pay contracts) and not subject to all the immigration policies such as NHI or Pension subsidized by the institute. However, as a contractor, you do enjoy some privilege such as prematurely ending the contract without consequences from the immigration law.

[Snowflake]

[Omkara]

Hey, do we earn an interest on pension? I've heard we do, but it is at the rate of the market interest, and I don't know what that is presently.

Can anyone enlighten me?

[Big Mac]

Big Fella, I've never heard of the 70 per cent thing before. At all the jobs I've had in Korea, they've paid 4.5 per cent of my salary into pension...that's all of it. I have also paid tax on all of my salary. The only exception I know if is for people who are not Canadian at public schools. They don't have to pay tax for the first two years.

[big_fella1]

Dealing with the questions in reverse order.

Big Mac:

A foreigner may choose either non-taxable treatment on 30% of gross wage & salary income(30% Exemption Method) or separate taxation of wage & salary income(including non-taxable wage & salary income) by multiplying such income by 17/100, which is preferential to him/her. In selecting separation taxation(the latter), provisions concerning such exemption, deduction, reduction and tax credit shall not be applicable(17% Flat Rate Method). source [http://www.nts.go.kr/eng/help/help_53.asp]

Not very clear but what they are saying is that you can choose a 30% exemption with deductions or a flat rate of 17% with no deductions whichever is favourable to you. I have been told you need to be on about w150,000,000 per year to make the 17% rate more favourable but I am not an expert.

Snowflake:


The contribution is calculated by multiplying the insured person'sStandard Monthly Incomeby contribution rate. source [http://www.nps.or.kr/jsppage/english/scheme/scheme_02.jsp]

It seems to depend what your employer declares your standard monthly income to be. As I get my pension money back I am actually unhappy with my employers pension calculation. I complained once at the pension office and was told that my employers calculation was okay. I should get onto this again and it may be worth your while to check with your local pension office as well.

Good luck

[Snowflake]

[Tho25]

Is there a deadline for when you have to apply for your pension

[Jeff's Cigarettes]

Before you die.

[big_fella1]

[Omkara]

Do our pension accounts earn interest, or not?

I have heard that this is the case. Anyone have specific information on this?

[Jeff's Cigarettes]

Yes.