Korean Job Discussion Forums

[kelly]

Ok its like this and before anyone says anything I was very naive. I went to talk to my boss on Tuesday evening about severance pay, as the second year of my contract is up, so he says that he hasn't taken the past years tax out of my pay and so will do so and deduct it from my severance pay. He says its about 5% of last years pay which will come to about 1.5 million, well I'm very confused because I can't understand why he didn't say anything before, I've never gotten a payslip as I'm the only foreigner in my school it goes directly into my a/c (stupid I know) but I'm just wondering can he do this? And what if he hasn't been paying taxes for me, what kinda trouble am I going to get into with immigration or anyone else when I want to come back, any advice appreciated. P

[Dalton]

No he can't. He has to deduct the 3.3% tax from your pay each month. In fact if he was really paying this he'd also be deducting 4.5% for pension.

If he's deducting 5.0% then he's probably not paying it to the government at all. 7.8% or 9.5% (if you are getting health care) are the magic numbers here as I understand it.

You do have to pay tax on your severance but I think it's just the 3.3% not the pension too.

Ask the guy for his tax number and your tax slip. Tell him you need it before you can leave the country for your income tax filing back home. Americans need this I think.

Unfortunately he may not have the money.

Wait and see what other advice comes up. Some posters here have dealt with this problem successfully.

[Grotto]

Contact the labor board asap. They will turn him into the IRS(or korean equivalent).

Tell him that unless you get your pay in full you will report him to the authorities! The fines for non payment of tax start at 5 mil won and go up. If he wants to be a dick follow through on your threat.

[Mankind]

The number will change soon. But here is the best number to call. You can get English help here for labour problems. There is also a new number active as this office is changing locations soon but I forget it.

Call center number: 02 872 9797
Open on Saturday till 1 pm I think.

HAND

[kelly]

thanks a million everyone, appreciate it, and hopefully he'll be pretty sorry that he ever crossed me when I'm done with him...

[Gord]

[Dalton]

Gord is correct. The tax system here is progressive.
Here's a link to an English explanation of Korean taxes.

KCCI

And here's another helpful link.

EFL Law Korean Taxation Issues

[kelly]

Hmm..heres another question does everyone pay into the pension scheme here, cos I haven't noticed that being deducted either...saying this though my school is privately owned very small, with only 4 full time teachers, whats the deal on this.....

[justagirl]

No pension for you. It's only required if the hakwon has more than 5 full-time employees.

[kelly]

Thanks again I was thinking that, theres 4 full time employees and two part time employees , so guess I'm good in that respect, just making sure incase he tries to squeeze more money out of me!!!