Korean Job Discussion Forums

[kardisa]

If someone has posted about the following info before, I apologize. I wasn't able to find anything through the search results.

My coworker and I recently started jobs at a new branch of a semi well-known chain hagwon.. Although our boss has owned 2 hagwons in the past, this is his first time dealing with foreign teachers. My coworker and I both have NHIS and pension (50% employer/50% employee) in our contracts and are listed as employees.

Today our boss called us in to discuss our deductions for NHIS/pension. The first figures he laid down (assuming 2.2mil won pay and not taking into account the 50/50 split) were as follows:

NHIS: 71,310
Pension: 198,000
Tax Rate: 3.3%

The amounts for insurance and pension seemed correct, but I told him the tax rate was too high for employees. After some back and forth with our translator/office manager, he told us that there are actually 2 different types of NHIS/pension plans: 1 for employees and 1 for contractors. The first one we were given was for contractors. The employee rates, he said, would be:

NHIS: 140,000
Pension: 198,000
Tax: ~1.3% (whatever the exact rate is)

We immediately said that we'd rather have this plan, since we are indeed employees, but he said that in order to enroll us, he would also have to enroll us in workers comp insurance and some form of unemployment insurance. This would cost him an extra 300,000 won a month.

I can tell he really, really doesn't want to pay the extra money to have us as full employees, but I told him I wanted to get more info before I made a decision as to which plan to choose.

So, is he trying to screw us over, or are there indeed two different national insurance/pension plans? If the latter, is there a reason we should go with the employee plan rather than the contractor plan? I don't mind spending the extra money as long as I'm getting full benefits.

And insight would be greatly appreciated.

[winterfall]

If your contract specifically says your an employee. You get the 2nd one. You nor your boss can retroactively change it. If he refuses to pay, you can take him to the labor board. Here's a sticky talking about something similar

http://forums.eslcafe.com/korea/viewtopic.php?p=2534388

http://forums.eslcafe.com/korea/viewtopic.php?t=196700&postdays=0&postorder=asc&start=0

[OculisOrbis]

Employee rates are below. Don't accept the contractor status he is trying to convince is better -- it's better for him only.

Pension is 9% and your share is 4.5% - the employer pays the other 4.5%

Health is currently at 5.33% -- your share is 2.67% -- the employer pays the other half.

Your tax withholding should be 31,990 won on a 2.2 million salary.

Tax withholding is calculated on a sliding scale depending on your earnings.

You can calculate your withholding here:
http://www.nts.go.kr/eng/help/help_56.asp?top_code=H001&sub_code=HS05&ssub_code=HSE4

[ttompatz]

All are YOUR portion of the costs.

His share of the medical and pension are the same.

You (as a foreigner on an E2) are EXEMPT from paying unemployment (you can never collect it since your visa is tied to your unemployment and if you become unemployed you are no longer entitled to residence in Korea).

He is legally responsible to pay into the national workers compensation plan and you are NOT obligated to pay any portion of it.

Medical (NHIC) 58740 won based on a salary of 2.2 million
Pension (NPS) 99000 won
Tax (NTS) 32000 won

Your boss is not a nice person.

.

[kardisa]

Okay, I double checked your calculations, ttompatz. Suffice it to say I have no idea where my boss pulled those two sets of figures from. The only thing he got correct was the pension. :/

I'm going to talk to my coworker tonight about getting this situation straightened out. Our boss may not be consciously trying to screw us (I'm an optimist), but if we don't get him to deduct the correct rates then he's likely going to pull this with every NET that comes after us.

Thanks for the advice/info, everyone.

[TheUrbanMyth]