Korean Job Discussion Forums

[plynx]

it's been a bit of a frustrating day haggling with my bosses. i'll try to make this quick - is there any reason that a school would be legally able to deduct only 3.15% for my pension contribution?

i thought that the 4.5% was standard. is there a salary cap that changes that figure? (for instance, anything higher than [insert number here] is only eligible to contribute [insert lower figure that benefits company]?) i looked on the NPS website and it also states 4.5%, but i apparently need more proof than that. i now have the NPS office number to call, but can't do so until after work. anyone been in a similar situation?

p.s. my company has been deducting only 3.15% for pension out of all of its workers - this is a MAJOR company here in Korea - paychecks (regardless of salary) and they say i am the "first" person to ever bring this up. (my radar is on and blinking.)

[poet13]

So they're playing with you. I know that after your first year here, there is a 30% deduction in the gross taxable wages. That's for income tax purposes. So instead of paying on 30,000,000 won salary, it would only be about 20,000,000.
From there, pension is paid on TAXABLE income. It might be that 3.1% is actually 4.5% of the lower taxable wage.
I don't have time to figure out the math....and I don't kno wif they're applying it to Koreans too.

[loose_ends]

[plynx]

thanks! that was actually VERY helpful! i'm working on my third contract, but this is the first time that a company has applied the 30% deduction. strange that i hadn't heard of it before. again, thanks!

[plynx]

loose_ends, thanks for the reply. i agree with you that it's a touchy subject and that i should approach it with caution. i had a quite a few issues at my last place of employment, so this year i decided to stand firm regarding matters of illegality. too bad my new company has to suffer through my paranoia. if they are doing something wrong, i'll find out. if they aren't, then i look like an ass for making a big deal out of it. i can deal with a temporary loss of dignity any day opposed to be being cheated.

[Chamchiman]

Your question sounds like the one I had last week in this thread:

http://forums.eslcafe.com/korea/viewtopic.php?t=136217

[plynx]

[quote="Chamchiman"]Your question sounds like the one I had last week in this thread[quote]

i did call the pension office. since this is past my second year, the pension deduction is taken out of 70% of my gross income. the school is contributing the correct amount at 4.5% of 70% of my salary. no wrongdoing. just a lack of knowledge on my part. thanks for the former link. i wish the search function had worked for me when i tried it out a few hours ago. hope someone gets good use out of my dilemma.