Korean Job Discussion Forums

[HAITAITIGERZ]

i have a question in regards to taxing overtime pay ...


on my regular salary, my deductions are the following:

3.3% (tax)
+ 1.5% (insurance)
__________________

= 4.8% total deduction on my regular salary




but in my overtime i was deducted the following:

4.8% (tax & insurance)
+ 3.3% (double tax) ?
_____________________
8.1% total deduction on my overtime salary


* I recieved 1 million won in overtime ... because of the formula used above by my company, i recieve 919,000 in overtime ... is this correct?

** i don't pay pension ... my company doesn't give out pension (illegal for my company, i know, but i'll fight that good fight another time - one battle at a time)


so is 8.1% deduction standard for overtime pay of 1 million? any help in this with sources i can give to my company would be greatly appreciated!!!!

[HAITAITIGERZ]

ummmmm .... anybody ??? *bump*

[kprrok]

For one, the original tax rate of 3.3% is too high, that's for independent contractors, not employees. it should be around 2% (depending on your actual salary).

Two, that insurance rate is too low, it should be about 2.5%. Add the two together and that's about 4.5%, almost what you pay. So the two balance each other out.

Three, if you got an extra million in overtime, your tax rate would go up significantly unless your base salary is very low.

If you still have doubts, call the tax office and the NHIS to confirm the amounts.

KPRROK