Korean Job Discussion Forums

RufusW · Joined: 14 Jun 2008 Location: Busan

Sorry, tried searching and Google's blocked from work?!

I'm renewing my 2009 contract for March 2010. Should I expect the 13th month severance pay and the 2 million won bonus?

I know it's severance, but the contract doesn't mention that this is canceled by accepting the 'contract renewal allowance'.

Maybe just wishful thinking...

ttompatz · Joined: 05 Sep 2005 Location: Kwangju, South Korea

RufusW · Joined: 14 Jun 2008 Location: Busan

Yea, so severance must always be paid, and they'll either give you 2 million or a return flight home.

March should be a big paycheck!

Thanks again ttompatz

tonyvu · Posted: Mon Feb 15, 2010 11:41 pm Post subject:

if paid out annually, is the severance payment based on the previous or new contract salary?

RufusW · Joined: 14 Jun 2008 Location: Busan

Previous; I believe this is something the labor board enforce. And if you don't renew you still get severance, so it must be the completed 12 month salary.

tonyvu · Posted: Tue Feb 16, 2010 11:47 pm Post subject:

are the renewal bonus and severance payment also subject to income tax, medical and pension deductions, etc?

sylvevl · Joined: 21 Apr 2010 Location: Ulsan, South Korea

I am wondering if you actually got paid the severance AND the 2M. My school's not paying and they say it's meant to be one or the other. What was your experience with it?

TheUrbanMyth · Joined: 28 Jan 2003 Location: Retired

warmachinenkorea · Joined: 12 Oct 2008

Yea you should get both. My wife and I are EPIK and some of the other EPIK teachers in our area were getting shafted as their schools thought they got one or the other.

If you re-sign about a month after you start your new contract you should get a nice fat pay check.

tombanjo · Joined: 23 Mar 2007

Having a look at the EPIK website would seem to indicate that if you extend/renew your contract for another year, you are entitled to the 2 million won, but NOT severance, 1.3 million won, or anything else.

Perhaps your contract says something else, though for most folks I know, this would seem to be the case.

jonpurdy · Joined: 08 Jan 2009 Location: Ulsan

Severance is mandatory. Your school can either pay you after each contract or at the end of all of your contracts. This is 100% correct.

tombanjo · Joined: 23 Mar 2007

Yup. you're 100% correct - I've been battling this out with my coteacher and was given the impression that I would only be getting the 2 mil, but on further investigation have proven to her this is not the case.

You don't get the flight money though if renewing, at least as far as my contract goes.

southernman · Joined: 15 Jan 2010 Location: On the mainland again

Yes the 25th of the next month will be a very healthy paycheck.

Your co-teacher should go over everything with you, pretty much as you re-sign.

So you will get

the month owing
the severance pay
re-signing bonus = equivalent of one months pay

Make sure you do get everything, some schools are confused because it is a lot of money.

sylvevl · Joined: 21 Apr 2010 Location: Ulsan, South Korea

Just as a followup, I showed the contract to my co-teacher and she agreed that I should get both renewal and severance. One quick phone call to the MOE to confirm and it's in my account.

So, to be clear for others in this situation, I got:

The 13th month severance pay
2M won renewal bonus
Regular pay in my last month of the last contract.

I did NOT get the 1.3M flight reimbursement, as this is deferred to when I actually leave Korea without renewing.

Several of my friends were told my their schools that the 13th month severance pay and the 2M were one and the same. This is NOT the case. So, if you didn't get both, then you need to talk to your co. (This is a crazy explanation since they may be two different amounts anyway.)

These are listed separately in the contract under Article 13 -7 and Article 10-3.

Hope that's helpful to others!

jonpurdy · Joined: 08 Jan 2009 Location: Ulsan

Just to clarify, the reason why you get a 2 million bonus is to cover round-trip airfare to your home country and back to Korea. So you get the two weeks home leave extra vacation time and paid for. They used to just cover the ticket cost (whether it's cheaper or more expensive) but now they just give you 2 million.

The 1.3 is to cover a one-way ticket back home.

The reason they give specific amounts is so they don't have to worry about fluctuating air ticket prices or exchange rates or anything like that.

Edit: wrote a blog post about this here http://sohandsometeacher.com/2010/11/10/confusion-about-severance-pay-and-renewal-bonus/