Korean Job Discussion Forums

[MarionG]

My boss insists that because she has 5 or fewer employees she doesn't have to participate in pension. I called the labor board, and they said, no, no pension, but I seem to have read on here that this simply isn't accurate.

Does anyone have a cite for the actual law if she IS required to pay pension?

[garykasparov]

Sticky: Immigration, NPS, NTS, NHIC, Labor (Contracts) , MoJ, MoE

Please read the NATIONAL PENSION ACT. You can find it on the National Pension Service Website. You will find all the laws you need to cite to your boss.

At the time of the introduction of the Scheme, foreigners were not mandatorily covered. Only foreigners working in a workplace covered under the Scheme could be covered as an Workplace based Insured Person by submitting an application.

Foreigners working at the workplace with 5 or more full-time employees were included in the mandatory coverage in August 1995 and those working at the workplace with less than 5 employees including self-employed foreigners were also included in the mandatory coverage in April 1999. Accordingly, foreigners aged from 18 to less than 60 who reside in Korea must be, in principle, covered under the Scheme.

But foreigners falling under any of the following items are excluded from the coverage.

- Those whose country does not mandatorily cover Korean citizens under its pension scheme.

=> Under this rule, only the nationals from 17 countries※ do not have to enroll and pay the NPS contributions.

※ the Republic of South Africa, Nepal, Maldives, Nyanmar, Bangladesh, Vietnam, Saudi Arabia, Armenia, Ukraine, Ethiopia, Iran, Egypt, Tonga, Pakistan, Fiji, Cambodea, Singapore

- Foreigners who are not registered under the Immigration Act, or to whom the forced deportation order has been issued under the same Act, or who are staying in Korea without being permitted to extend their term of stay.

- Among the registered foreigners under Immigration Act, those whose stay status falls under any of the followings; culture & art, studying abroad, industrial training, general training, religion, visiting & living together and others.

- People excluded from the mandatory coverage of National Pension Scheme, by the social security agreement.

Foreign Insured Persons under the National Pension Scheme are equally treated as the national Insured Persons. For example, there is no discrimination in terms of the benefit amount and remitting benefit abroad, etc. But there is a certain distinction in regarding Lump-sum Refund. In principle, Lump-sum Refund is not paid to foreigners leaving Korea after having been covered under the Scheme. But, in the case of foreigners falling under any of the following items, Lump-sum Refund is paid.

- People whose country grants Koreans a benefit corresponding to Lump-sum Refund under the National Pension Scheme.

=> Under this rule, only the nationals from 29 countries※ may receive the Korean lump sum refund.

Please refer to Article 102 of the National Pension Act and Article 85-3 of the Enforcement Decree of the National Pension Act.

※ Venezuela (if completed at least 24 months of periods of contributions) ; Grenada, Nigeria, Barbados, Saint Vincent and Grenadines, Zimbabwe, Cameroon, Congo, Tahiland, Togo(for the 9 countries above, if completed at least 12 months of periods of contributions) ; Belize (if completed at least 6 months of periods of contributions) ; Ghana, Malaysia, Bermuda, Sudan, Sri Lanka, Switzerland, El Salvador, Jordan, India, Indonesia, Kazakhstan, Kenya, Trinidad and Tobago, HongKong, Turkey, Colombia, Philippines, Vanuatu ; (as of January, 2007)

- People whose home country has concluded a social security agreement with Korea to secure benefit rights by combining the insured period in each country.(Refer to "Social Security Agreement")

※ As of June 2007, Canada, The U.S., Germany, Hungary, France

- A person who is employed at the workplace covered by the National Pension Scheme as a foreign worker stipulated in [The Act on the Employment, etc. of Foreign Workers]

=> status of stay E-9(Non-professional employment) or H-2

- A person who is employed at the workplace covered by the National Pension Scheme as a person who has status of sojourn eligible for doing industrial trainee activities and doesn't desert designated training places during required training period under [Immigration Control Act]

=> status of stay E-8(Employment for training)

(If you are a national from non-contracting states)

- If you reside in Korea

You should visit a regional office, having the following documents ready

< Required documents >

- An Application for Korean Benefits (The form is ready at the regional offices.)

- a copy of your ID card

- your local bankbook.

- A copy of an airline ticket. (the date of departure has to be in less than a month from the date of the claim)

- If you are insured under the other public pension schemes, a certificate of employment and a copy of a certificate of coverage should be presented.

- If you reside overseas

A claim can be made by an agent or mail.

(1) In case of a claim by a relative living in Korea

※ the legitimate scope of relatives: spouse, lineal ascendants or descendants , siblings, parents in law, spouses of lineal descendants, siblings in law.

< Required documents >

- An Application for Korean Benefits

- A hand-written letter of attorney

- A copy of your passport

- A family register document confirm a relative's relations.

(※ It will be attested by the korea embassy.)

- An ID card of an agent

- A copy of an agent's or your local bankbook (if you apply for overseas remittance �

Application For Overseas

Remittance and a bank statement or void check which shows your name and account number are required)

(2) In case of a claim by attorney in a foreign country

In case that you reside in a foreign country, you may apply for the benefit by notarizing your letter of attorney in the country and it will be attested by the korea embassy.

< Required documents >

- A letter of attorney should be notarized from a notary's agency of the country in which you reside and it will be attested by the korea embassy.

※ You should make it clear that you intend the agent(Resident registration number, Full name, Address, etc.) in Korea to receive your lump-sum refund behalf of you in a letter of attorney in which your stamp or signature appear.

※ An agent living in Korea who has received the letter of attorney and the document above should get their Korean-translated texts notarized again so the letter's contents

- A copy of your passport

(3) In case of a claim by mail in a foreign country

< Required documents >

- An application of attorney should be notarized from a notary's agency of the country in which you reside and it will be attested by the korea embassy.

- A copy of your local bankbook(if you apply for overseas remittance - Application For Overseas Remittance and a bank statement or void check which shows your name and account number are required.)

- A copy of your passport

[MarionG]

Thank you gary