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eamo
Joined: 08 Mar 2003
Location: Shepherd's Bush, 1964.
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 Posted: Tue Mar 15, 2011 6:52 pm Post subject: Should Housing Allowance be Included in Severance Payment? |
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Simple question...........if you're taking the housing allowance instead of apt, should the school accountant consider that a part of pay and so include it when calculating your severance payment?
They certainly consider it a part of my pay when they tax me every month!! |
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Ramen
Joined: 15 Apr 2008
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| Posted: Tue Mar 15, 2011 6:58 pm Post subject: Re: Should Housing Allowance be Included in Severance Paymen |
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| eamo wrote: |
Simple question...........if you're taking the housing allowance instead of apt, should the school accountant consider that a part of pay and so include it when calculating your severance payment?
They certainly consider it a part of my pay when they tax me every month!! |
no. it's not earned income.  |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Tue Mar 15, 2011 7:13 pm Post subject: Re: Should Housing Allowance be Included in Severance Paymen |
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| eamo wrote: |
Simple question...........if you're taking the housing allowance instead of apt, should the school accountant consider that a part of pay and so include it when calculating your severance payment?
They certainly consider it a part of my pay when they tax me every month!! |
Is it a taxable benefit according to the NTS = yes.
Is it part of your wages to be calculated for purposes of pension/severance?
EMPLOYEE RETIREMENT BENEFIT SECURITY ACT
Article 2 (Definition)
3. "Wages" refer to wages prescribed in Article 2 of the Labor Standards Act;
4. "Average wages" refer to average wages prescribed in Article 2 of the Labor Standards Act;
Article 8 (Establishment of Retirement Pay System)
(1) An employer who intends to set up a retirement pay system shall set up the system that makes it possible to pay workers who retire 30 days or more of average wages for each year of their consecutive service as retirement pay.
and from the LABOR STANDARDS ACT:
Article 2 (Definition)
5. The term �wages� in this Act means wages, salaries and any other money and valuable goods an employer pays to a worker for his/her work, regardless of how such payments are termed.
6. The term �average wages� in this Act means the amount calculated by dividing the total amount of wages paid to the relevant worker during three calendar months prior to the date on which the event necessitating such calculation occurred by the total number of calendar days during those three calendar months. This shall also apply mutatis mutandis to less than three months of employment.
Is it part of your wages to be calculated for purposes of pension = YES if you want to fight for it. It will mean a trip to the labor board.
http://www.moel.go.kr/english/topic/laborlaw.jsp?tab=Standards
http://www.moel.go.kr/english/topic/laborlaw_view.jsp?idx=254&tab=Standards
http://www.moel.go.kr/english/topic/laborlaw_view.jsp?idx=260&tab=Standards
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eamo
Joined: 08 Mar 2003
Location: Shepherd's Bush, 1964.
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| Posted: Tue Mar 15, 2011 7:47 pm Post subject: |
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Thanks for the great info, Tom.
I guess I'll let it go......the amount is not worth the enormous headache it would be to even attempt to recover it. |
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CPJ
Joined: 30 Dec 2008
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| Posted: Wed Mar 16, 2011 8:56 am Post subject: |
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That sounds like a good decision. I too would and have let small things go in the past because they are usually more trouble that they are worth.
The only thing I would advise to anyone that would consider fighting for it would be to do it after you finish your contract and have been paid.
If you dispute it before, you could have trouble getting paid your regular wages and severance.
After you are paid everything minus the housing allowance portion of the severance, that is when you should go ask for it. Act like you are surprised that it wasn't included. Almost apologize that you are asking for it in a polite way and let them know what the law is. It's not a lot of money so if the school likes you, they will probably pay you and just be more careful with the next teacher's contract. If they don't like you, then get ready for a long fight. |
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