Korean Job Discussion Forums

[KJ]

Hi, just wondering if anyone can tell me the deal with tax, pension, health care etc. My boss has said that coz I'm an aussie I can't get my pension payments back when I leave, so the best thing for me to do would be for her NOT to register me for penison and health and for me to pay my own health, and they will still take 3percent tax/month. does this sound right?
cheers,
KJ

[ontheway]

Your boss wants you to join her and millions of other Koreans and billions of people around the world in the underground economy. You'll have to think about that.

For your income tax, you should check the NTS website. Your withholding should be deducted according to that site. It is not any straight percentage. I don't know how much you make but you can look it up. Your boss will probably just keep that money anyway, so make it as small as you can. Get pay stubs.

If you get some alternative health insurance, make sure you get a health insurance card. Your boss should still pay half.

If you don't pay into the national pension, then you should ask for an increase in your pay of 4.5%, the money your boss is saving.

Your boss will benefit greatly by keeping you and all of the students you are teaching in the underground economy. The benefit to your boss from having the whole business appear smaller is substantial. Get your cut.

[Kimchieluver]

At the very least, get your boss to pay half the National medicare fee. You don't want to pay the full amount yourself and you don't want to be hit by a car and have no coverage.

[alabamaman]

It's your bosses responsibility to:

Deduct 2.24% of your monthly salary and pay it to National Health Care Insurance Corporation

Prepay a lump sum payment every three months (2.24% x monthly salary x 3) = lump sum payment

As of 01/01/2006, Foreign Language Teachers are required to be enrolled in the National Health Plan.

Your employer is required to deduct income taxes and pay them to the district tax office every month.

------------------------------------------

2,000,000 Won: 28,950 Korean Won
2,100,000 Won: 33,430 Korean Won
2,200,000 Won: 39,800 Korean Won
2,300,000 Won: 49,330 Korean Won

http://nts.go.kr/front/service/refer_cal/gani/refer_gani_eng.asp


Pension contribution and return of said pension contribution at the end of contract

http://www.npc.or.kr/social/index_en.html
http://www.eslcafe.com/forums/korea/viewtopic.php?t=45302

[Big Mac]

Unfortunately your boss is right that as an Australian you cannot get the money you pay into the National Pension Plan back when you leave Korea. Perhaps you should lobby your government to get a social security agreement with Korea similar to the one that Canada and the United States have. As a Canadian, I can get the money back because of that.

Even though you can't get the money back, it is still mandatory for your boss to pay into the pension plan and enrol you with the National Health Insurance plan. If he doesn't, he's breaking the law.

However, because you are Australian it is probably in your best interest to go along with your boss and not pay into the plan. Also, it may also be in your best interest to pay into a private health plan because as soon as you sign up for medical insurance, the pension people will be informed of your presence.

Keep in mind, however, that at a certain point the government may figure out that you are not contributing and demand that your boss enrol you. And if that happens, you may be required to pay retroactively.

As for the percentages:

For pension you pay 4.5 per cent of your monthly salary and that is matched by your employer.

For health insurance you pay 2.2 per cent and that is matched by your employer.

Taxes are determined on a sliding scale and you can visit this website to find out what you are supposed to pay: http://nts.go.kr/front/service/refer_cal/gani/refer_gani_eng.asp

I agree with an earlier poster who said that you should be getting more money if you aren't getting pension. You should be getting an extra 4.5 per cent on top of your monthly pay to compensate for that. If you're working with Canadians or Americans who are getting pension, it means they are making more money than you, and that's not fair. I would put it in a separate bank account in case you have to backpay in the future.

[wylies99]

You never know if Korea might enter into an agreement with Australia, (at some point), and you'll lose money. Plus, it's better for you to keep things nice and legal. That way, you can sleep at night.

[Grotto]

for right now its better for you.

pension 4.5%
health 2.24%

you are paying tax of 3% which is a bit high....but you are saving almost 7% on the other deductions....I would only be concerned about becoming ill and needing medical care!