Korean Job Discussion Forums

[moldenke]

For the past year, my school has deducted the usual 4.5% from my pay check for the NPS.

Last pay day, the deduction was less than half that (about 2%). My manager has simply said this is "the new rate."

Any possibility this is legit? Planning to visit the Pension Office soon, would appreciate any advice on how to proceed in the meantime.

[WadRUG'naDoo]

Common courtesy and common practice is informing you of any change in such rates. Whoever knew damned well they should've told you.

Not in Korea? No. Not with my paycheck.

Call the pension office and they'll tell you the rate. You are supposed to get statements from the pension office, but the boss takes it upon himself to get/keep those.

Stupid crap employers.

[OculisOrbis]

The rate has not changed.

Possibly your employer has started underreporting your income to the pension office, but then they are still screwing up the scam.

The scam is supposed to be that they report less than half your income to pension, but continue with the regular full deduction from your pay. That way, you dont know anything is wrong until you go for your pension refund and less than half the money is there. Usually people dont have time to make a fuss about it and just leave korea. The employer saves a nice chunk of change.

[interestedinhanguk]

Call the pension office. They can do everything over the phone. They can tell you the rate and how much your employer has paid to date. You can complain if anything is amiss and they'll take care of it. I've had to do this in the past with them.

Sounds like your boss is only reporting half your income, so he/she only has to pay half of what is truly owed. I caught a boss under-reporting. I got some line about how 'this is what all schools do' and such, and trying to explain that it's better for me.

[Ramen]

Same thing happened to me recently. So I contacted NPS and found that pension rate is based on earned income minus the 30% tax exemption that us FTs enjoyed last year.

So if I was earning approx. 3 mil/month last year and my actual earned income would be 2 mil/month (minus 30% tax exemption). So the NPS would base the rate on 2 mil instead of 3 mil. Thus, less pension deduction.

[interestedinhanguk]

[Ramen]

[shredgnar]

The same thing happened to me, so I called the pension office. Turns out everything was legit. Like the above posters have mentioned, if you stay at the same job they base your pension on 70% of earned income.

[sojusucks]

But you get the same pension donation from the school?

[interestedinhanguk]