| View previous topic :: View next topic |
| Author |
Message |
Savant
Joined: 25 May 2007
|
 Posted: Sat Feb 26, 2011 7:49 pm Post subject: Salary includes rental fee? |
 |
|
So, I start a new contract on Monday and I am now a little wary in the way the financials of my salary are being worked out.
My monthly salary is given as 2.4 million and I am going to live in school provided housing that has a monthly rental fee of 450,000.
Now, in the contract it states my monthly salary as 2.85 million won [monthly salary + rental fee] and not 2.4 million. Bear in mind that this is not a Housing Allowance as I could not get one nor choose my own housing. The school is paying the rental fee but it is being added to my salary.
When I challenged my recruiter on this she said the school was asked to do this by the Government. Being the cynic that Korea has made me regarding contractual issues I am now starting to feel a little suspicious about this.
So, anyone else out there with a contract like this or is there anyone that can tell me that this contractual clause is on the up and up. |
|
| Back to top |
|
 |
lifeinkorea
Joined: 24 Jan 2009
Location: somewhere in China
|
| Posted: Sat Feb 26, 2011 8:30 pm Post subject: |
|
|
I doubt any school would offer this with a teacher out of the country. You haven't mentioned anything about airfare either, which makes me think you are in Korea.
So, why not go visit the place? See for yourself where you will work and live. |
|
| Back to top |
|
|
pangaea
Joined: 20 Dec 2007
|
| Posted: Sat Feb 26, 2011 8:43 pm Post subject: |
|
|
| It sounds to me like the 2.85 million is the total value of your salary including what the school will be paying for your housing. 2.4 million is the amount you will receive after the school pays for your housing, which sounds like a decent amount. Maybe I'm missing something, but I'm not sure what the problem is. |
|
| Back to top |
|
|
northway
Joined: 05 Jul 2010
|
| Posted: Sat Feb 26, 2011 9:24 pm Post subject: |
|
|
| You work for CDI, I'm guessing? |
|
| Back to top |
|
|
fugitive chicken
Joined: 20 Apr 2010
Location: Bucheon
|
| Posted: Sun Feb 27, 2011 1:16 am Post subject: |
|
|
| It's because they want to tax you for the housing salary. Before it was an untaxed benefit, now it's taxed so they are reporting that amount of salary to the government |
|
| Back to top |
|
|
Savant
Joined: 25 May 2007
|
| Posted: Sun Feb 27, 2011 2:25 am Post subject: |
|
|
| fugitive chicken wrote: |
| It's because they want to tax you for the housing salary. Before it was an untaxed benefit, now it's taxed so they are reporting that amount of salary to the government |
That was starting to be my thought too.
So, it reads that the school will be reporting my salary to the Government as 2.85 million with me paying all the tax on it. Then, I guess I will be arguing to receive severance payment for that amount too  |
|
| Back to top |
|
|
Savant
Joined: 25 May 2007
|
| Posted: Sun Feb 27, 2011 2:27 am Post subject: |
|
|
| lifeinkorea wrote: |
I doubt any school would offer this with a teacher out of the country. You haven't mentioned anything about airfare either, which makes me think you are in Korea.
So, why not go visit the place? See for yourself where you will work and live. |
The issue isn't the housing itself but the fact that I could be paying tax on a housing allowance that isn't one. |
|
| Back to top |
|
|
CentralCali
Joined: 17 May 2007
|
| Posted: Sun Feb 27, 2011 2:55 am Post subject: Re: Salary includes rental fee? |
|
|
| Savant wrote: |
| When I challenged my recruiter on this she said the school was asked to do this by the Government. |
Sounds like a load of hooey. |
|
| Back to top |
|
|
lifeinkorea
Joined: 24 Jan 2009
Location: somewhere in China
|
| Posted: Sun Feb 27, 2011 3:53 am Post subject: |
|
|
| Savant wrote: |
| lifeinkorea wrote: |
I doubt any school would offer this with a teacher out of the country. You haven't mentioned anything about airfare either, which makes me think you are in Korea.
So, why not go visit the place? See for yourself where you will work and live. |
The issue isn't the housing itself but the fact that I could be paying tax on a housing allowance that isn't one. |
So you are willing to just sign a contract, in Korea, if you aren't going to be taxed without seeing the place first?
Sounds like you are spending too much time talking to the recruiter and working out formulas than actually checking out the situation first hand. Talk with the school and see the place as I previously suggested. |
|
| Back to top |
|
|
Savant
Joined: 25 May 2007
|
| Posted: Sun Feb 27, 2011 4:05 am Post subject: |
|
|
| lifeinkorea wrote: |
| Savant wrote: |
| lifeinkorea wrote: |
I doubt any school would offer this with a teacher out of the country. You haven't mentioned anything about airfare either, which makes me think you are in Korea.
So, why not go visit the place? See for yourself where you will work and live. |
The issue isn't the housing itself but the fact that I could be paying tax on a housing allowance that isn't one. |
So you are willing to just sign a contract, in Korea, if you aren't going to be taxed without seeing the place first?
Sounds like you are spending too much time talking to the recruiter and working out formulas than actually checking out the situation first hand. Talk with the school and see the place as I previously suggested. |
I'm sorry I think you misunderstood the situation.
I know what the housing is and where it is.
It is the fact that upon further checking on the wording of my contract that I seem to be set-up to be paying tax on school provided-housing.
In that respect you can say I erred on the fact I trusted a recruiter. |
|
| Back to top |
|
|
NYC_Gal 2.0
Joined: 10 Dec 2010
|
| Posted: Sun Feb 27, 2011 5:54 am Post subject: |
|
|
Make sure pension contributions and severance take that full salary into account  |
|
| Back to top |
|
|
winterfall
Joined: 21 May 2009
|
| Posted: Sun Feb 27, 2011 8:32 pm Post subject: |
|
|
No, nothing in the contract says that. Housing is covered by the school they don't take it out of your paycheck or add it into there. If you don't take the housing, you get a stipend, that's just extra money in your monthly paycheck. Even though your taxed on it, it DOES NOT count towards your pension. Pension and Severance is only your salary (Your pay grade)
Honestly if this comes from the government which I really doubt, it sounds like they're trying to tax you more. From the school's perspective they're trying to cover their liable costs and if they're putting a cap on it, they might be expecting rent to go up.
Email the district office and ask questions about the school. Are you sure it's part of the education office umbrella and isn't one of those independent public schools that use the regional contract? If it's later, I'd just pass no matter what the money is cause if there's ever a problem you can't go to the education office, they're not responsible for you so the school can screw you and you either take it or run |
|
| Back to top |
|
|
DaeguNL
Joined: 08 Sep 2009
|
| Posted: Sun Feb 27, 2011 11:07 pm Post subject: |
|
|
| Ask the company to pay the difference in taxes. You could be losing out on 20-30K extra/ month with the extra tax/health payout. Over a year it could easily be 300-350,000. |
|
| Back to top |
|
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
