Korean Job Discussion Forums

[itiswhatitis]

I'm starting a new job in a couple of weeks.

They are giving me a salary of 2.6 million won and a housing allowance of 900 000 won for a total monthly pay of 3.5 million.

For my current job the housing is provided and my monthly salary is 2.3 million won. I currently pay a tax rate of 3% but I expect the tax rate for my new job to be higher.

Anyone know what kind of rate rate I'm looking at? I suspect that the pension plan is only deducted on the actual salary of 2.6

Thanks!!!

[laynamarya]

At our school, the housing allowance is not taxed. Check with your school, but I suspect you will only be taxed on your 2.6 mil income.

[Malislamusrex]

If the 900,000 won goes to a third party it will be recorded in the school account as accommodation and it won't be taxed. If the 900k is added into a pay check and paid to the employee it is classed as salary / employee income and that is taxed.

[YTMND]

[Malislamusrex]

What you said there makes no sense.

If 2.6 + 0.9 is paid directly to the employee it is taxed.

If an employee asked the university to pay the 0.9 accomodation to a landlord directly it wouldn't get taxed.

[ttompatz]

A housing allowance is a taxable benefit according to the NTS.

Taxes are on a progressive scale and at 3.5m won/month your withholding taxes should be on the order of 170,000 won / month (assuming him to be a single (no dependents) and no other significant deductions or tax credits).

http://www.nts.go.kr/eng/help/help_56.asp?top_code=H001&sub_code=HS05&ssub_code=HSE4

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