Korean Job Discussion Forums

[curiousaboutkorea]

So I was chatting to the pension office and learned something very interesting.

As you may already know, employers were allowed to base pension payment on only 70% of a foreign employees income. Not good for us, but whatever.

Well, this year that was repealed, making employers base figures on 100% of salary. Good.

However, your if your current employer employed you from last year, they don't have to follow this! They can still do just the 70% continuing through this year. If you get a new job this year, the employer has to start at 100% right away.

So, if you're working at the same place as last year, you're still going to only get 70% while everyone coming over now is getting 100%.

[teacherinseoul]

The percentage pension deduction is based on your salary from the last year. If you made 2.5 million last year, and 2.8 million this year, your deduction would be based upon a percentage of 2.5 million.

Now, I don't quite see how this retrospectiveness should apply to arcane tax loopholes. However, it doesn't surprise me. I always got the impression that the pension people were eager to dismiss any of my concerns.

[curiousaboutkorea]

Right. Good point. This was also mentioned in my conversation with them.

However, I don't quite see how the 70% of total salary SHOULD figure into this. They're still getting away with 4.5% of the 70%. I love when new legislation is enacted but there's a serious delay in enforcement.