| View previous topic :: View next topic |
| Author |
Message |
madhusudan
Joined: 30 Jan 2006
|
 Posted: Wed Jan 28, 2009 4:07 am Post subject: Severance pay over in 2011? |
 |
|
I was doing a little reading on severance pay and came upon something which says the standard one month's extra pay at the end of a contract will be over at the end of next year. Instead it'll be rolled into pension.
http://www.korea4expats.com/article-severance-pay-korea.html
Can anyone confirm whether this is in fact the case? I hadn't heard of this before. |
|
| Back to top |
|
 |
pocariboy73
Joined: 23 Jan 2003
|
| Posted: Wed Jan 28, 2009 4:39 am Post subject: |
|
|
Wow! That's news to me...
So does that mean before 2011 I have to quit my job, where I've been at for the past 5 years, to make sure that I get my severance pay? |
|
| Back to top |
|
|
schwa
Joined: 18 Jan 2003
Location: Yap
|
| Posted: Wed Jan 28, 2009 5:03 am Post subject: |
|
|
| That would be a major change. I havent heard anything nor do I see anything substantive in your link. Severance affects all workers, Korean & foreign, & I dont believe it could be poised to change overnight without a major uproar. |
|
| Back to top |
|
|
quilter
Joined: 11 Feb 2006
|
| Posted: Wed Jan 28, 2009 6:23 am Post subject: |
|
|
| If you get your pension when you leave, it wouldn't make a huge difference would it? |
|
| Back to top |
|
|
pocariboy73
Joined: 23 Jan 2003
|
| Posted: Wed Jan 28, 2009 3:50 pm Post subject: |
|
|
| quilter wrote: |
| If you get your pension when you leave, it wouldn't make a huge difference would it? |
Yes, but some nationalities are NOT entited to the pension due to there not being an agreement between the two countries. |
|
| Back to top |
|
|
fromtheuk
Joined: 31 Mar 2007
|
| Posted: Wed Jan 28, 2009 4:23 pm Post subject: |
|
|
I've read the article, where do they get information from which states this will definitely happen?!!
The article makes it sound like a certainty.
If it's true, it's awful to be British.  |
|
| Back to top |
|
|
yingwenlaoshi
Joined: 12 Feb 2007
Location: ... location, location!
|
| Posted: Wed Jan 28, 2009 5:14 pm Post subject: |
|
|
| fromtheuk wrote: |
I've read the article, where do they get information from which states this will definitely happen?!!
The article makes it sound like a certainty.
If it's true, it's awful to be British. |
From what I read, if you don't get a lump-sum refund upon "retiring", you still qualify for a seperate serverance pay. So no problem if you're British.
The 5-employee rule? Not so sure on that. If they're going by that old rule for pension then it's probably not true. They got rid of that rule in 1999, I believe.
What else I find surprising is:
Severance is to be paid within two week of termination of employment
Employeer can choose to pay at the end of the year if an employmee is staying in the job or at the end, when the employee is leaving. |
|
| Back to top |
|
|
Looney
Joined: 23 Dec 2008
|
| Posted: Wed Jan 28, 2009 5:27 pm Post subject: |
|
|
| fromtheuk wrote: |
I've read the article, where do they get information from which states this will definitely happen?!!
The article makes it sound like a certainty.
If it's true, it's awful to be British. |
I hope the British government comes to an agreement before then but not expecting anything.
Who else is affected by this? South Africans and New Zealanders I think? Can`t remember if the Aussies have some sort of agreement to get their pension paid back to them at the end of a contract. |
|
| Back to top |
|
|
Seon-bee
Joined: 24 Jan 2003
Location: ROK
|
| Posted: Wed Jan 28, 2009 5:47 pm Post subject: |
|
|
I didn't know they're the same. Article 34.4 says that if enrolled in the pension scheme, then that serves as severance. Lucky me.
| Quote: |
Article 34 (Severance Pay System)
(4) In cases where an employer has enrolled in pension insurance program for retirees or a retirement lump sum payment trust as prescribed by the Presidential Decree (hereinafter referred to as �pension insurance, etc.�) for workers, whereby workers, as the insured or a beneficiary, receive lump sum payment at the time of retirement, or draw their pensions, it shall be deemed that the employer has set up a severance pay scheme in accordance with paragraph (1). The amount of lump sum by the retirement insurance, etc., however, shall not be smaller than that of severance pay pursuant to paragraph (1). |
|
|
| Back to top |
|
|
pocariboy73
Joined: 23 Jan 2003
|
| Posted: Thu Jan 29, 2009 12:16 am Post subject: |
|
|
delete
Last edited by pocariboy73 on Thu Jan 29, 2009 12:47 am; edited 2 times in total |
|
| Back to top |
|
|
pocariboy73
Joined: 23 Jan 2003
|
| Posted: Thu Jan 29, 2009 12:17 am Post subject: |
|
|
A large percentage of the Pension Funds were invested in Asian growth funds, primarily the Chinese and Korean stockmarket, which up until last year were doing well. However, that investment turned out to be a bad one as the NPF decreased close to 50%. Also, all the population statistics point to rapid increase of older people drawing from the Fund, and a major decrease in people paying into the Fund. The Fund is in need of a major overall. First thing to go will be the "Lump Sum Benefits to Foreigners". Next will be an increase in the age which permits eligibility to draw from it. In fact, that was already done a few years ago, but it's going to be done again.
Just my two won... |
|
| Back to top |
|
|
yingwenlaoshi
Joined: 12 Feb 2007
Location: ... location, location!
|
| Posted: Thu Jan 29, 2009 8:15 am Post subject: |
|
|
| I used to be all horny about getting pension, but now I don't care. If an employer doesn't mention it or stress on me getting it, I just tell them that I don't care about it. I could always claim it later if I feel like it. Helps me negotiate a higher salary at first, etc. |
|
| Back to top |
|
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
