Korean Job Discussion Forums

[BarelyMakingIt]

Hey there,

I'm about to finish my contract (THANK GOD!!!) and my boss just let me know that she'd be deducting her usual 5% tax from my last month's pay AND my Bonus money.

I was under the impression that the 1-year end-of-contract bonus was a tax-free affair.

Does anyone have any information on this?
Thanks in advance for any advice!
Cheers!

[IwalkAlone]

It's not tax free, however it isnt 5% either, no tax in korea is 5% except the fraud kind.....

To calculate severance tax, you subtract a portion and the rest is taxed at 8-9%. The tax exempt portion is maybe 300k. You can read the tax guide to see the real values. But that's vaguely how it is done.

[ilovebdt]

[harryh]

Severance pay is taxed at a higher rate. If you aren't taxed at a higher rate, count yourself lucky.

[BarelyMakingIt]

Thanks for the info!
I guess I'll take what I can get and get out of here.
Cheers!