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lisac1983
Joined: 14 Dec 2008
Location: sydney, australia
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 Posted: Sat Jan 24, 2009 1:35 pm Post subject: Pension Payments For A 7-month Contract |
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I've managed to get a 7-month contract and, having just read the FAQs regarding the pension scheme, I am wondering if I am required to pay the pension given that I am not working for an entire year....
Article 34 (Retirement Allowances System)
(1)An employer shall establish a retirement allowance system whereby an average wage of more than 30 days shall be paid for each year of consecutive years employed as a retirement allowance to a retired worker; however, if the worker was employed for less than one year, this shall not apply.
Does this mean that neither my boss nor myself are obligated to contribute any money to the pension plan?
Cheers. |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Sat Jan 24, 2009 4:26 pm Post subject: Re: Pension Payments For A 7-month Contract |
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| lisac1983 wrote: |
I've managed to get a 7-month contract and, having just read the FAQs regarding the pension scheme, I am wondering if I am required to pay the pension given that I am not working for an entire year....
Article 34 (Retirement Allowances System)
(1)An employer shall establish a retirement allowance system whereby an average wage of more than 30 days shall be paid for each year of consecutive years employed as a retirement allowance to a retired worker; however, if the worker was employed for less than one year, this shall not apply.
Does this mean that neither my boss nor myself are obligated to contribute any money to the pension plan?
Cheers. |
Article 34 was changed in the latest version of the labor standards act and no longer appears. It's equivalent has moved to the Employee Retirement Benefit Security Act http://english.molab.go.kr/data/EmployeeRetirementBenefitSecurityAct.pdf .
It refers to the "end of contract bonus" of one month's salary for each full year worked.
Pension (as per the national pension plan) is a separate matter and yes, legally you are required to pay into it. The contribution is 4.5% of your salary and is matched by your employer. If you are from the States, Canada, Australia or Ireland you can get a cash refund when you leave.
If you are from South Africa you are exempt from it.
http://www.nps.or.kr/ |
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lisac1983
Joined: 14 Dec 2008
Location: sydney, australia
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| Posted: Sat Jan 24, 2009 9:30 pm Post subject: |
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Cheers. Thanks so much mate! The FAQs seem to be a little out of date. Glad to know I get my money back in any case
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mickydenn
Joined: 26 Mar 2008
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| Posted: Sat Jan 24, 2009 9:58 pm Post subject: Ireland - no lump sum refund |
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just to clarify for Irish people...
from the NPS website
④ Korean lump-sum refunds are not granted to Irish nationals based on this Agreement. Lump-sum refunds
can be paid to nationals of a third state only in accordance with the reciprocity principle under the National
Pension Act. |
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yingwenlaoshi
Joined: 12 Feb 2007
Location: ... location, location!
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| Posted: Sat Jan 24, 2009 10:29 pm Post subject: |
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| Frosted Lucky Charms. They're magically delicious! |
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cmr
Joined: 22 Mar 2006
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| Posted: Sat Jan 24, 2009 11:05 pm Post subject: |
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I'm not sure the OP could get the pension money back after a 7-month contract. I was told that you can only get that money if you completed a full year contract; otherwise, you can forget about it.
If someone can prove me wrong, with some proof, I'd be delighted as I did a 6-month contract 2 years ago.  |
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yingwenlaoshi
Joined: 12 Feb 2007
Location: ... location, location!
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| Posted: Sun Jan 25, 2009 12:41 am Post subject: |
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| cmr wrote: |
I'm not sure the OP could get the pension money back after a 7-month contract. I was told that you can only get that money if you completed a full year contract; otherwise, you can forget about it.
If someone can prove me wrong, with some proof, I'd be delighted as I did a 6-month contract 2 years ago. |
You're not being very helpful. In fact, quite the opposite.
If you pay into pension, you get it back. Your 4.5% and your employer's 4.5%. All 9%. No matter if you've worked a day or to worked to infinity. Whatever you've contributed is returned when you apply for the refund. But if you're from countries that don't have a reciprocal agreement, you don't get the refund. Those countries are Ireland, South Africa and New Zealand, I think.
You don't have to work a year. Sorry for your loss. |
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ontheway
Joined: 24 Aug 2005
Location: Somewhere under the rainbow...
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| Posted: Sun Jan 25, 2009 4:36 am Post subject: |
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| cmr wrote: |
I'm not sure the OP could get the pension money back after a 7-month contract. I was told that you can only get that money if you completed a full year contract; otherwise, you can forget about it.
If someone can prove me wrong, with some proof, I'd be delighted as I did a 6-month contract 2 years ago. |
You should listen to ttompatz, he generally gives good information.
If you worked a 6-month contract, then there should be 5, 6 or 7 months (depending on your actual beginning and ending dates of employment) of pension payments in your pension account from that period of employment. You should check with the pension office to see if the contributions were made. I have read that you have up to 3 years to file against your past employer to claim unpaid pension amounts. You would have to make the matching payments if the amounts were never paid or withheld. |
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