Korean Job Discussion Forums

[farfromhome]

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[kprrok]

For one thing, national insurance, AFAIK, is no longer optional. It is mandatory. And the good thing about that is that since they have to sign you up for insurance, they also have to sign you up for pension.

Insurance is 2.24% and pension is 4.5%. This means you will get 200.000 or so deducted, and you will get about 3.200.000 back from the pension office when you leave.

That was your big mistake. By not taking insurance, you're losing about 800.000 or so. Plus, if you get sick, you are SOL.

KPRROK

[farfromhome]

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[farfromhome]

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[farfromhome]

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[ontheway]

If you are on the National Health Insurance, you will pay 2.24 % of your monthly gross pay for that, with your employer paying a matching amount. You will have to pay this retroactively to January 2006, at least.

You will have to pay 4.5% monthly to the National Pension Program, again with your employer matching the amount. This, too will require a retroactive payment either back to January or more likely to your beginnning work date.

Thus, you will have to pay 6.74% monthly, retroactively at the current rates (which could change, especially health insurance which could go up).

You will not get any money back unless your from the US, Canada (or ???). If you are from one of the countries that has an agreement with Korea, and if that agreement doesn't change, you will get back your 4.5% plus your employer's 4.5% plus some paltry interest. (I can make much more on my own investments.)

For me, having health insurance is worth the cost. I don't want to take the risk of a major health issue without some coverage.

Assuming you never need your health insurance, your gain is 2.26% monthly, if you can get the money back later. Getting a refund is not guaranteed even if you are from a country that currently has such an agreement.

On your 3 million salary, 2.26% comes to only 67,800 won per month. On the other hand, your monthly income tax is too low, according to the withholding tables on the NTS website. You should be closer to 4.7% for your withholding tax. If you push to get everything "legal" this could wipe out most of your gain. You might net out 20,000 or so per month.

Since you have no written contract and you could really annoy your boss with this, there is no guarantee that you'll come out ahead at all. You could be getting higher pay without the pension, and by demanding pension and insurance get a lower salary, pay higher taxes or lose your job.

[TheUrbanMyth]