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a few questions in regards to pension/health insurance,+ tax

 
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Jackhammer96



Joined: 30 Oct 2013

PostPosted: Mon Feb 24, 2014 3:00 am    Post subject: a few questions in regards to pension/health insurance,+ tax Reply with quote

I have been given a contract that states that I will be offered health insurance, in which it will be split both ways (but doesn't specify the percentage). The contract, however, doesn't say anything about pension. Am I to automatically assume that I am guaranteed a pension, if the contract states I am getting health insurance? The following is an extract from the contract, for you own consideration:

"Article18. (KOREAN HEALTH INSURANCE:) Employee will be covered by medical benefits under the Korean Medical Insurance Union, a Government Health Organization. The cost of this coverage will be borne half by employer and half by Employee. Employee's share of this coverage will be deducted from Employee's monthly salary."


The contract also states that I am to pay 5% in taxes (the independent contractor rate), yet the contract refers to me as an employee). Is being referred to as an employee not enough to make me an employee and not an independent contractor? I do question the contract in how it is phrased. I am not sure if I am being called employee, in name only. Here are extracts from the contract, referring to this issue:

"Article17. (INCOME TAX) Approximately 5% per month of the Employee's salary shall be deducted by the employer as withholding tax. As provided by Korean law."

"This Employment Contract (hereinafter this “Contract”) is made by and entered into between the Chief Director of Sosa GnB Foreign Language school, the Republic of Korea (hereinafter “Employer”), and the native American speaker (Name) ___________________ (hereinafter “Employee”) a British citizen residing at __________"

The contract also keeps referring to me as Employee and not The Employee, which is just bad English. I am not sure if something like this will cause problems for me.

Furthermore, I had a big conversation with a recruiter online, about the standard tax rate. He kept arguing with me that 3.3% was the standard for all English schools. I more or less stated to him that I know that 3.3% is only for private contracters, yet he kept insisting he was right.
He referred to the 3.3% taxing as GabGeunSe. I tried googling this term, but I couldn't find anything. I am not sure if he believed in what he was talking about, but I felt a bit annoyed that he kept making me out to be stupid.

On a more off topic note. I am feeling a bit unsure about the contract in regards to housing. The contract seems to imply that the employer may be able to secure housing for me but will give me money for to pay for rent. If somebody can have a look at the following extract from the contract, and let me know what you think, that would be great. Smile

"Article 14 (Housing) ① Employer shall provide Employee with housing selected by Employer. Housing selected by Employer may be, including but not limited to, a leased house, a studio-type room, or an apartment. Any and all fees, charges, costs, taxes, expenses, etc. incurred in using the housing shall be borne by Employee.
② If Employer is not able to provide housing for Employee, Employer shall provide Employee with 300,000 Korean Won per month, as a rent subsidy, in lieu of the housing set forth in the foregoing ①.
③ Employer may provide temporary housing until the appropriate housing for Employee becomes available.
④ Employer shall decide whether to provide Employee with housing or a rent subsidy after discussion with the employee. Once decided, Employer's decision shall not be subsequently changed during the term of Employment.
⑤ If Employer provides housing to Employee, Employer may provide, appliances and furniture such as a bed, table and chairs, a closet, a gas range, a refrigerator, a washing machine, a microwave, and a TV set. Employee shall not request or demand any other appliances or furniture than those provided by Employer."


Any thaughts would be great anyway, cheers! Smile
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SeoulNate



Joined: 04 Jun 2010
Location: Hyehwa

PostPosted: Mon Feb 24, 2014 3:08 am    Post subject: Reply with quote

if it doesnt mention pension, you wont be getting it.

Pass.

If you get pension, that means you are an employee and I wouldnt worry so much about the taxes because you can check what they are paying with the tax office after being there for a two months.

if they are screwing around with you, you can report them.

If they are just overpaying, you can claim it all back at the end of the year.
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SeoulNate



Joined: 04 Jun 2010
Location: Hyehwa

PostPosted: Mon Feb 24, 2014 3:10 am    Post subject: Reply with quote

As far as the housing contract goes, seems pretty standard, but 300k per month subsidy really sucks, especially if they try and force it on you. The wording in that line is strange.

again, pass
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Jackhammer96



Joined: 30 Oct 2013

PostPosted: Mon Feb 24, 2014 3:19 am    Post subject: ... Reply with quote

Cheers SeoulNate.

So your saying that, even if the contract states that I am to be taxed by 5%, I will get the majority of it back at the end of the year, as I am signing a contract that states that I am an employee?

I am going to ask the recruiter to change a few things anyway.
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ttompatz



Joined: 05 Sep 2005
Location: Kwangju, South Korea

PostPosted: Mon Feb 24, 2014 3:25 am    Post subject: Reply with quote

This is a hagwon job where the ONLY thing you will get is housing and your regular pay.

Do NOT count on NPS, NHIC or having proper taxes deducted or your tax refund at the end of the year.

Don't say you weren't warned.

Oh, and as an afterthought, 10 years ago the housing subsidy was 400k won.
300k is about 1/2 what it takes to get a (decent) one-room office-tel in most of Korea (with a 10 million won deposit).

.
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I-am-me



Joined: 21 Feb 2006
Location: Hermit Kingdom

PostPosted: Thu Feb 27, 2014 4:37 pm    Post subject: Reply with quote

Pass on this school. It's obvious they are already trying to screw you out of benefits. If you stay with it, make sure you include a clause that states you are not an independent contractor, that they will pay pension, that they will pay your severence and flight at end of contract with or without dismissal, and you will be given an LOR at end of contract.
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