Korean Job Discussion Forums

[arminda]

I'm reviewing a contract right now that swaps out the private Korean Medical Institute Union insurance plan for the NHIC plan. I already know better than to accept this plan, and I'm turning down the contract, but I would like to have some more info about these plans for when this inevitably comes up again.

What exactly does this private plan cover? I did a few searches but couldn't find out anything. The recruiter is trying to sell me on it by virtue of it being cheaper and that it will cover me when I travel outside Korea (which I'm sure I'll be doing a lot of on the scattered public holidays given in the contract). Also, they are telling me that the 7% tax rate quoted in the contract covers my tax, resident tax and the medical. I know it's BS, but I would like to have some more facts to call out anyone who tries to get me to sign on something like this in the future.

Also, what is the normal contribution rate for the NHIC? I know that the costs are split between the teacher and the employer, but I haven't been able to find a figure on about how much would actually be deducted.

Thanks for any help.

[ontheway]

Withholding:

Income tax withholding should be according to the NTS site. For most new E2 teachers it's under 2%.

Check your rate here: http://www.nts.go.kr/eng/help/help_52.asp


Residence tax is 10% of the income tax withholding amount - so under 0.2%.

Health Insurance should be about 3% - it has increased and it's by brackets, so not an exact percentage. Your employer pays an equal amount, each pays half of the amount billed.

Pension - you should get this as an employee - 4.5%. It's also by brackets and not an exact percentage. You and your employer each pay half of the 9% bill. Pension is a flat monthly rate and does not change for overtime. The entire amount may be paid out to you when you leave Korea depending on where you are from.

[bbunce]

This is the insurance website:
http://www.nhic.or.kr/portal/site/eng/menuitem.1ae3bb69fc2bea0644416433062310a0/?purl=02_01.html

7% of your total wages taken out for pension/insurance/taxes sounds about right. The problem is that most employers pocket that money and never report your income. Insist that you receive monthly official pay statements on payday and have them write it in the contract. If you are an American, you are exempt from paying any resident taxes in Korea if you do the paperwork before you come here.

[arminda]

Thanks for the info. That definitely clears up a couple of things. I still haven't found anything about a private insurance company called Korean Medical Institute Union aside from that being the plan used in a bunch of shady contracts.

[cincynate]

Run away from this employer as fast as you can. You are going to have one shitty year constantly fighting over your pay if you accept.

[ttompatz]