Korean Job Discussion Forums

charlieDD · Joined: 16 Jun 2006 Location: Seoul, Korea

Just got to wondering: My last employer would make sort of "short-term contracts" with me for duties that went beyond the requirements of the contract I was employed under. They would be informal letters stating the terms, the duration, etc. Payment was always made separately, but wired to my same bank account. No tax, pension, health, etc. calculated on it.

Would you think that this was an accounting error? Should these deductions have been taken on these amounts? Seems to make sense that they would.

Not planning to push the issue; just wondering.

chronicpride · Joined: 16 Jan 2003

I totally doubt he deducted anything off of these side deals. If you want to be sure, then go to the pension office in your district with your ARC and confirm what's being contributed to your pension.

ontheway · Posted: Sun Aug 27, 2006 2:17 am Post subject:

The pension tax is set up with the pension office based on a set of income brackets so that one point in the bracket is 4.5%. Your pension tax should be approximately 4.5% of your monthly base salary. Legal or not, I'm not sure, but the pension office sends out a monthly bill for the pension tax based on your regular monthly income. They do not want this amout to change every month. It's too much paperwork. Your overtime is generally free from pension tax and health insurance (which, as a percentage of your income, is also like a tax.) You probably should be paying income tax on the overtime, but why rock the boat? You're ahead.