Korean Job Discussion Forums

[gforce645]

This is a topic that has been on my mind for quite some time but I feel like I'm not getting a straight answer.

I'm Level C (2.5 million/month) public school teacher with SMOE. My pension deductions should be 4.5% each month but its only around 71,000 won from my check. Shouldnt it be around 112,000 won instead from my monthly check?

When I ask my school accountant through a translator she explains that its calculated from last years pay. If thats the case, that means I made around 1.6 million a month last year which is impossible.

I dont want to invade anyones financial privacey buy can anyone share their personal experience or knowledge about this. Does anyone else out there have this same situation?

[jinju necklace]

Right now your pension contribution is based on your 2009 taxable income. In 2009, foreigners were only taxed on 70% of their gross income. So, if you are paying around 71,000 won right now you were probably making around 2.25 million won per month in 2009 (71,000/4.5%/70%).

The National Pension Service does their yearly audit in June. That's when they will inform your employer of your new pension amount (based on your 2010 income). Since 2010, foreigners are now taxed on 100% of their gross income. So, your pension contribution will be considerably higher.

[gforce645]

Thank you for the clear answer and explination. Ive been wondering if and when my pension would finally increase. I didnt realize that there was a re-evaluation in June. If my school told me that it would eventually increase I wouldnt have been so concerned by this matter. Thanks again