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Housing allowance included in my bonus/severance pay?!

 
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is so delicious



Joined: 28 Apr 2009

PostPosted: Thu Jan 10, 2013 9:26 pm    Post subject: Housing allowance included in my bonus/severance pay?! Reply with quote

My co-worker recently said it was. This is news to me. Is this true? I know my employer is going to claim otherwise, so just want to know if I have some ammo to combat him on this.
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YTMND



Joined: 16 Jan 2012
Location: You're the man now dog!!

PostPosted: Thu Jan 10, 2013 11:52 pm    Post subject: Reply with quote

Highly unlikely. If you get 12 months housing allowance, 2 flights, pension for 12 months, and 13 months of salary payment, move on.
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cincynate



Joined: 07 Jul 2009
Location: Jeju-do, South Korea

PostPosted: Fri Jan 11, 2013 1:14 am    Post subject: Reply with quote

YES!.. If your employer provides housing, it is considered a benefit and is not taxed. However, if your employer gives you a housing allowance, it is considered salary by the government. Therefore it is used in calculating your tax, insurance premium, pension contribution, AND severance payment.

Salary (2.3mil + housing 500,000 = 2.7 million/month.) Your severance should be 2.7 million!
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Wildbore



Joined: 17 Jun 2009

PostPosted: Fri Jan 11, 2013 2:10 am    Post subject: Reply with quote

cincynate wrote:
YES!.. If your employer provides housing, it is considered a benefit and is not taxed. However, if your employer gives you a housing allowance, it is considered salary by the government. Therefore it is used in calculating your tax, insurance premium, pension contribution, AND severance payment.

Salary (2.3mil + housing 500,000 = 2.7 million/month.) Your severance should be 2.7 million!


A housing allowance is just that, an "allowance." Although it is considered taxable income by the tax office, it DOES NOT fall under the definition of wage/salary under Labor law, therefore not used for the calculation of severence. This is the same reason why cash for an airfare ticket wouldn't be included in severence. Labor law is what matters, not what the tax office thinks.
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ttompatz



Joined: 05 Sep 2005
Location: Kwangju, South Korea

PostPosted: Fri Jan 11, 2013 2:39 am    Post subject: Reply with quote

www.moel.go.kr/english/download_eng.jsp?type=&file=(31)LABORSTANDARDSACT_2012.pdf

You might want to read article 2 sub 5 & 6 of the labor standards act:

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.

.
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Gamja-tang



Joined: 23 Oct 2011

PostPosted: Fri Jan 11, 2013 8:54 am    Post subject: Reply with quote

I was going to fight for my housing allowance too before I left, but decided against it after looking at the Ministry of Employment and Labor's website. There are multiple questions asking about this under the Q&A section, just search for "housing". There is one basic criteria for housing to be included in severance. It must be paid "periodically and uniformly to ALL employees".

2) Housing allowance 주택수당
This is payment for a worker's living support or welfare, regardless of the number of working hours.
동 수당은 근로시간수와 무관하게 근로자의 생계보조 또는 복지를 위해 지급됩니다.

- In cases where it is rendered periodically and uniformly to all workers,
it is wage included in average wage
모든 근로자에게 정기적으로 일률적으로 지급된다면 평균임금에 포함되는 임금이고,
- In cases where it is rendered temporarily or to only to some worker, it is not wage. So, it is not included in average wage.
동 그품이 단지 일시적 또는 일부 근로자에게만 지급되는 경우 임금이 아니고, 평균임금에 포함되지 않습니다.
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is so delicious



Joined: 28 Apr 2009

PostPosted: Wed Feb 20, 2013 6:47 pm    Post subject: Reply with quote

ttompatz wrote:
www.moel.go.kr/english/download_eng.jsp?type=&file=(31)LABORSTANDARDSACT_2012.pdf

You might want to read article 2 sub 5 & 6 of the labor standards act:

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.

.



Yup... I don't see how my employer can fight me on this. I get 2.3 + .7 for housing, every month. If that's the average amount of monthly pay, it looks like that's what I'm owed for my severance.

Man... my school is NOT doing well financially, and now they suddenly owe me like ten million WON. Or not suddenly, I guess, but... I have a feeling this might end up in court.
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newb



Joined: 27 Aug 2012
Location: Korea

PostPosted: Wed Feb 20, 2013 11:02 pm    Post subject: Reply with quote

YUM YUM~ Razz
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watergirl



Joined: 01 Jul 2008
Location: Ansan, south korea

PostPosted: Thu Feb 21, 2013 12:48 am    Post subject: Reply with quote

That's very interesteing. But I think you're forgetting about all the Korean teachers a the school who don't get a housing allowance
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is so delicious



Joined: 28 Apr 2009

PostPosted: Thu Jun 06, 2013 1:36 am    Post subject: Reply with quote

Just wanted to bump this. I would think it's come up before and been an issue for many specific people. When people get their bonuses, are their housing allowances included?!

I've been trying to call the labor board all day, but the number's been busy.

Anyone have a good lawyer for when my snake of an ex-boss officially refuses to pay what he owes? I have to leave Korea in a month or two, and I gotta get this taken care of.
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Weigookin74



Joined: 26 Oct 2009

PostPosted: Sun Jun 09, 2013 5:48 pm    Post subject: Reply with quote

I worked public school and got my severance until this year. (Won't get paid out from now on until I finish employment.) My severance was based on the actual salary and not the housing allowance. I think being the government, the local ed office goes by the rules in these regards. (Local schools or rural ed offices maybe not so much.) Anyways, I would say fight it if you want but it probably won't go anywhere.
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newb



Joined: 27 Aug 2012
Location: Korea

PostPosted: Sun Jun 09, 2013 7:02 pm    Post subject: Reply with quote

Weigookin74 wrote:
I worked public school and got my severance until this year. (Won't get paid out from now on until I finish employment.) My severance was based on the actual salary and not the housing allowance. I think being the government, the local ed office goes by the rules in these regards. (Local schools or rural ed offices maybe not so much.) Anyways, I would say fight it if you want but it probably won't go anywhere.


No, the labor law in this matter is very clear cut. If you've been working for the same employer for 5 years like me that's quite a bit of money.

All it takes is just a phone call to the labor board and the labor inspector will set things straight with your employer. Razz
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ttompatz



Joined: 05 Sep 2005
Location: Kwangju, South Korea

PostPosted: Sun Jun 09, 2013 7:06 pm    Post subject: Reply with quote

Might take more than a simple phone call.

Foreigners who make calls usually get a song 'n dance or just ignored and sent away.

Go in and make the complaint (in writing).
Take a Korean with you if needed to deal with the paperwork.

.
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