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Overture1928
Joined: 12 Jan 2014
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 Posted: Sun Apr 06, 2014 10:12 am Post subject: 3.3% Option vs National Health/Pension Break Down, Ttompatz? |
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This is the second time an employer has offered me the option of either doing 3.3% or the standard National Health Insurance/Pension + tax. Even though Ill probably opt for the Insurance I just want to know the math behind them. Let's say the salary is 2 500 000 and housing is 500 000.
For 3.3% it would be (Salary + Housing) 3 000 000 X 0.033 = 99 000원 a month deducted, take home is 2 901 000원/month . ---------------------------------------------------------------------------------------------------------------------------------------------- Standard Option: To figure out appropriate tax I assume I just add (Salary + Housing) and put it into this calculator Tax = 88 180원 For health insurance it would 5.99% of the base salary (excluding housing). So 2 500 000원 X 0.0599 = 149 750원, now if we do 50/50 I only pay 74 875원/month for Health. For Pension it would be 9% of the base salary (excluding housing). So 2 500 000원 X 0.09= 225 000원, if we do 50/50 I only pay 112 500원/month for Insurance. Total deductions per month would be 88 180 + 74 875 + 112 500 = 275 555원. Take home = 2 724 445원. Considering I will get all of the pension + the employers contribution back in the end I really make 2 874 195원 a month. The difference between the 3.3% option and standard ends up being 26 805원 (321 660원/year) which is basically giving you health care every month. How is my math? I think I might be missing some other taxes too like inhabitants tax or something and possibly unemployment insurance but I don't know the numbers. |
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Porksta
Joined: 05 May 2011
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| Posted: Sun Apr 06, 2014 3:12 pm Post subject: |
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| Pension and health are half that. Your employer pays the other half. So for pension, you pay 4.5% while your job pays the other 4.5%. |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Sun Apr 06, 2014 5:06 pm Post subject: Re: 3.3% Option vs National Health/Pension Break Down, Ttomp |
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| Overture1928 wrote: |
This is the second time an employer has offered me the option of either doing 3.3% or the standard National Health Insurance/Pension + tax. Even though Ill probably opt for the Insurance I just want to know the math behind them. Let's say the salary is 2 500 000 and housing is 500 000.
For 3.3% it would be (Salary + Housing) 3 000 000 X 0.033 = 99 000원 a month deducted, take home is 2 901 000원/month . ---------------------------------------------------------------------------------------------------------------------------------------------- Standard Option: To figure out appropriate tax I assume I just add (Salary + Housing) and put it into this calculator Tax = 88 180원 For health insurance it would 5.99% of the base salary (excluding housing). So 2 500 000원 X 0.0599 = 149 750원, now if we do 50/50 I only pay 74 875원/month for Health. For Pension it would be 9% of the base salary (excluding housing). So 2 500 000원 X 0.09= 225 000원, if we do 50/50 I only pay 112 500원/month for Insurance. Total deductions per month would be 88 180 + 74 875 + 112 500 = 275 555원. Take home = 2 724 445원. Considering I will get all of the pension + the employers contribution back in the end I really make 2 874 195원 a month. The difference between the 3.3% option and standard ends up being 26 805원 (321 660원/year) which is basically giving you health care every month. How is my math? I think I might be missing some other taxes too like inhabitants tax or something and possibly unemployment insurance but I don't know the numbers. |
Your math is close.... unless you actually USE your NHIC then you come out much further ahead.
Also... NHIC CAN come after you for back payments (ALL OF THEM) if they discover you exist even if you were on the IC rate of 3.3% putting you much further behind on the IC rate..
. |
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Overture1928
Joined: 12 Jan 2014
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| Posted: Sun Apr 06, 2014 5:47 pm Post subject: |
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| Porksta wrote: |
| Pension and health are half that. Your employer pays the other half. So for pension, you pay 4.5% while your job pays the other 4.5%. |
Read it again where I say if we do 50/50. |
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CPT
Joined: 25 Mar 2007
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| Posted: Sun Apr 06, 2014 5:57 pm Post subject: |
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Is there any way out of the NHIC back payments thing? A way to restart the clock?
I've read that even if you cancel your visa and get a new one you could still be subject to the back payments. |
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Overture1928
Joined: 12 Jan 2014
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| Posted: Mon Apr 07, 2014 4:08 am Post subject: Re: 3.3% Option vs National Health/Pension Break Down, Ttomp |
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| ttompatz wrote: |
| Overture1928 wrote: |
This is the second time an employer has offered me the option of either doing 3.3% or the standard National Health Insurance/Pension + tax. Even though Ill probably opt for the Insurance I just want to know the math behind them. Let's say the salary is 2 500 000 and housing is 500 000.
For 3.3% it would be (Salary + Housing) 3 000 000 X 0.033 = 99 000원 a month deducted, take home is 2 901 000원/month . ---------------------------------------------------------------------------------------------------------------------------------------------- Standard Option: To figure out appropriate tax I assume I just add (Salary + Housing) and put it into this calculator Tax = 88 180원 For health insurance it would 5.99% of the base salary (excluding housing). So 2 500 000원 X 0.0599 = 149 750원, now if we do 50/50 I only pay 74 875원/month for Health. For Pension it would be 9% of the base salary (excluding housing). So 2 500 000원 X 0.09= 225 000원, if we do 50/50 I only pay 112 500원/month for Insurance. Total deductions per month would be 88 180 + 74 875 + 112 500 = 275 555원. Take home = 2 724 445원. Considering I will get all of the pension + the employers contribution back in the end I really make 2 874 195원 a month. The difference between the 3.3% option and standard ends up being 26 805원 (321 660원/year) which is basically giving you health care every month. How is my math? I think I might be missing some other taxes too like inhabitants tax or something and possibly unemployment insurance but I don't know the numbers. |
Your math is close.... unless you actually USE your NHIC then you come out much further ahead.
Also... NHIC CAN come after you for back payments (ALL OF THEM) if they discover you exist even if you were on the IC rate of 3.3% putting you much further behind on the IC rate..
. |
Can you elaborate a little more on actually use? Also is it legal for the school to enroll you but you pay the full % of contributions instead of 50/50? |
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Wildbore
Joined: 17 Jun 2009
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| Posted: Tue Apr 08, 2014 6:24 am Post subject: Re: 3.3% Option vs National Health/Pension Break Down, Ttomp |
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| Overture1928 wrote: |
| ttompatz wrote: |
| Overture1928 wrote: |
This is the second time an employer has offered me the option of either doing 3.3% or the standard National Health Insurance/Pension + tax. Even though Ill probably opt for the Insurance I just want to know the math behind them. Let's say the salary is 2 500 000 and housing is 500 000.
For 3.3% it would be (Salary + Housing) 3 000 000 X 0.033 = 99 000원 a month deducted, take home is 2 901 000원/month . ---------------------------------------------------------------------------------------------------------------------------------------------- Standard Option: To figure out appropriate tax I assume I just add (Salary + Housing) and put it into this calculator Tax = 88 180원 For health insurance it would 5.99% of the base salary (excluding housing). So 2 500 000원 X 0.0599 = 149 750원, now if we do 50/50 I only pay 74 875원/month for Health. For Pension it would be 9% of the base salary (excluding housing). So 2 500 000원 X 0.09= 225 000원, if we do 50/50 I only pay 112 500원/month for Insurance. Total deductions per month would be 88 180 + 74 875 + 112 500 = 275 555원. Take home = 2 724 445원. Considering I will get all of the pension + the employers contribution back in the end I really make 2 874 195원 a month. The difference between the 3.3% option and standard ends up being 26 805원 (321 660원/year) which is basically giving you health care every month. How is my math? I think I might be missing some other taxes too like inhabitants tax or something and possibly unemployment insurance but I don't know the numbers. |
Your math is close.... unless you actually USE your NHIC then you come out much further ahead.
Also... NHIC CAN come after you for back payments (ALL OF THEM) if they discover you exist even if you were on the IC rate of 3.3% putting you much further behind on the IC rate..
. |
Can you elaborate a little more on actually use? Also is it legal for the school to enroll you but you pay the full % of contributions instead of 50/50? |
In theory they could deduct nothing from your pay and just foot the full %. Why would they do that? The point of the system is to share the burden of social insurance payments. |
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