Korean Job Discussion Forums

[proverbs]

So I know this topic has been thrown around before, but I'm still not quite clear on this.

So a hagwon is not legally required to hire you as a "Teacher", and can hire you as an "Independent Contractor", correct? Which means that the benefits that are required would be different, right?

So, is there any benefits to being hired as a "real" employee or an independent contractor? If I'm hired as a NET, do I legally have to be hired as an employee?

I was recently offered a job at a school which seems to have a great work environment and nice hours. The school offered a nice salary, too. However, they do not offer a pension plan. They offered me 200,000 more than what I was expecting, which is more than the 4.5% pension I would have got. They are giving me all the other benefits, so all I'll be losing out on is the pension. I emailed 2 of the current teachers there, and 1 was hired awhile back when the school offered the pension, but the more recent teacher said he was not receiving the pension and didn't mind because he was getting paid more. They both had positive things to say about the school.

Is this something I should avoid?

[BigBuds]

Calculate the pension as 9% because you school has to match your 4.5% and you get it all back.

Also, if they aren't paying pension you will not be receiving health insurance either as they are both linked. Can't have one without the other.

So if you are being offerred 200K more than you expected it may or may not cover what you get back from the pension office. And the pension gets interest as well.

And remember, if you get sick it will cost you.

In the long run, it's better to be an employee than an independant contractor.

With only 200K extra, you are still coming out behind.

[Skippy]

Plus being hired as an independent contractor also raises your tax rate to 3.3%. If a proper employee it would be lower the 3.3%

As mention no pension, means no health insurance. Linked. Next, pension is 9 percent contributed 50/50 by both sides. You are likely loosing out on that if you get money in return at the 4.5.

Why do you not want pension. For some people the can not collect. New Zealand and England if I am correct. South Africans do not have to pay.

Still even if you are a independent contractor you are by LAW obligated to register for pension and health insurance. Worse off for you is your are 100% responsible for payments. Thus if proper employee you would pay 4.5 percent for pension, but as an IC you pay all 9 percent. Same with health, sorry forgot the rate.

Can you get away without registering. Yes, but if things come up and you are caught you can expect to pay back pension and health for the months you are not enrolled in.

Plus if a job is showing that they are willing to cheat the government, shows they will gladly cheat you too. I would even be suspicious on the money the collect for taxes.

Do not walk blindly into an IC contract. For some people it can work, for others it means troubles.

[bojangles]

[Skippy]

Can not find a government site referencing the linking. Still looking. It is more of information sharing. When one department gets informed the other gets notified, too.

Found it...
http://english.nps.or.kr/jsppage/english/scheme/scheme_02.jsp
Top of the page. and quoted...

[bojangles]

Thanks,

So any job offering medical without Pension is BS,..?

I've seen a lot of jobs that offer Medical but no Pension.

I thought it was just a part of cut-backs.

But it appears that it is illegal and that it will catch up with you.

Is that right?

[Skippy]

[bojangles]

"1) Get you enrolled with private insurance, which will not cover you."

Why won't they cover you?

[Skippy]

[proverbs]

Thanks for all the input everyone.

The insurance company that will provide my coverage is LIG Insurance.

I looked at the Contracts Review thread and saw many of the contracts are similar to mine -- they mention the private insurance company that will provide the medical, but they don't have any clause for pension.

But the 'back pay' issue got me curious. So if I decide to work another year after my contract ends, will I have to back pay for the year I didn't receive health insurance from the NHIC and the pension?

[proverbs]

Where's the ttompatz when ya need him?!

[Wildbore]

If a foreigner has health insurance through his contract, or health insurance provided by his country, he/she will exempt from registering with the NHIC.

The law is on the NHIC website.

However, the NHIC is generally considered to be the best general coverage.

[Skippy]

[BigBuds]

[bojangles]