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Wildbore
Joined: 17 Jun 2009
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 Posted: Tue Apr 17, 2012 5:42 am Post subject: Update: National Pension problem |
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I completed 2 years at the same place at a salary of 2,000,000. I contacted the pension office today to check my pension account.
Basically they told me that I had 23 contributions sent (sounds right for 2 years), but the amount in the account was only 2,386,800.
The listed contribution rate is 9%. That should mean I have 4,140,000 in the account, if the proper amount of 180,000 per month was sent.
I never got a paystub showing the exact pension amount, but it said the total taxes for health, income, and pension were 170,000 per month. That seems like a normal total withholding amount for all three.
Could this be income underreporting and embezzlement?
Last edited by Wildbore on Fri May 04, 2012 4:20 am; edited 1 time in total |
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YTMND
Joined: 16 Jan 2012
Location: You're the man now dog!!
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| Posted: Tue Apr 17, 2012 7:14 am Post subject: |
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| Then take the contracts in for both years and show them. See what they say. They being both your school and the pension office. I would talk with the employer first and ask. If they don't budge, then after you leave the school go to the pension office. |
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ontheway
Joined: 24 Aug 2005
Location: Somewhere under the rainbow...
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| Posted: Tue Apr 17, 2012 7:19 am Post subject: Re: National Pension problem |
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| Wildbore wrote: |
I completed 2 years at the same place at a salary of 2,000,000. I contacted the pension office today to check my pension account.
Basically they told me that I had 23 contributions sent (sounds right for 2 years), but the amount in the account was only 2,386,800.
The listed contribution rate is 9%. That should mean I have 4,140,000 in the account, if the proper amount of 180,000 per month was sent.
I never got a paystub showing the exact pension amount, but it said the total taxes for health, income, and pension were 170,000 per month. That seems like a normal total withholding amount for all three.
Could this be income underreporting and embezzlement? |
Yes, the amount withheld is approximately the correct amount for your total Pension, Health Insurance and Income tax if they had been properly and legally reported.
You should find out the amount of each individual contribution and what your employer reported for your salary. It sounds like your employer reported your salary at about 1.1 or 1.2 million won. Likely he did the same for Health Insurance since it is also a percentage of your pay and for your Income Taxes. This would mean that the total withheld by your employer was enough to pay for 100% of your pension, health insurance and income tax.
If your employer did report the wrong salary you can show the Pension Office your contract and hopefully some payroll receipt of some kind that lists your actual salary. The Pension Office can then go after your employer for the underpaid amount.
Your boss has also cheated on the Health Insurance payment and the income taxes on your behalf. It won't be any financial benefit to you to report these, but if you are so motivated you should. If the agencies involved were to completely audit and recalculate all amounts you might have to make some small additional payments, although you would come out way ahead by collecting your full and correct pension. |
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Wildbore
Joined: 17 Jun 2009
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| Posted: Tue Apr 17, 2012 11:08 pm Post subject: |
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There was a worker at this hagwon before me. He moved back to the US and applied for his NPS refund through the social security administration.
He probably got screwed too (smaller refund than he should have got) and didn't know it. I'm still friends with him, is there anyway he could authorize me to check for him on his behalf. |
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sojusucks
Joined: 31 May 2008
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| Posted: Fri Apr 20, 2012 3:24 pm Post subject: |
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Since the school has alreay withheld the pension money at his full salary it is 100% in his interest to
pursue this since he is owed his own pension contribution plus the school's contribution. |
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Wildbore
Joined: 17 Jun 2009
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| Posted: Fri May 04, 2012 4:22 am Post subject: |
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After inquiring, I got a message from the NPS international office explaining the situation. The salary reported is RIDICULOUSLY low compared to the contracts I signed at 2,000,000 and 2,100,000. I will follow up with the local office and see what happens next.
| Quote: |
I am sorry for your current situation. It must be a big disappointment.
The pension contribution is calculated based on the income, and the income for the first working year (before next years July) is decided by the employer's report. And one for the next year is decided according to the reported taxable income.
In your case, you were enrolled in NPS at 2010-04-26, and disqualified on 2012-03-12.
For the first year to next year's June (2011), your income basis was 1,200,000 won.
From July, 2012, your income basis was 1,080,000 won.
You don't need to pay if you start working from the first day of a month, so started paying contribution from May, 2010.
In this end, your contribution total is for 23 months, 2,386,800 won.
It seems to be there is a distance between your actual salary and the reported income. If you think this is wrong, you can fix it.
I think the first step is to visit a NPS office and issue your contribution record, and compare it with your salary sheet. And ask your employer to fix it. And also you have to ask your employer to fix the tax report, because your tax was reported your monthly income is 1,080,000 won. Then there will be additional tax for your income.
If your ex-employer is not cooperative, please collect the proof of your salary and ask the branch office (Dong Ulsan Branch) to help. without employer's cooperation, it is not easy to fix it, and you have to mind there will be additional tax on your income.
If you have anyother questions, please let us know.
Sincerely, |
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YTMND
Joined: 16 Jan 2012
Location: You're the man now dog!!
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| Posted: Fri May 04, 2012 5:21 am Post subject: |
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| Quote: |
| If your ex-employer is not cooperative, please collect the proof of your salary and ask the branch office (Dong Ulsan Branch) to help. without employer's cooperation, it is not easy to fix it, and you have to mind there will be additional tax on your income. |
If this was written up by a Korean, great. Gives us all hope. |
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ontheway
Joined: 24 Aug 2005
Location: Somewhere under the rainbow...
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| Posted: Fri May 04, 2012 11:05 am Post subject: |
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| Wildbore wrote: |
After inquiring, I got a message from the NPS international office explaining the situation. The salary reported is RIDICULOUSLY low compared to the contracts I signed at 2,000,000 and 2,100,000. I will follow up with the local office and see what happens next.
| Quote: |
I am sorry for your current situation. It must be a big disappointment.
The pension contribution is calculated based on the income, and the income for the first working year (before next years July) is decided by the employer's report. And one for the next year is decided according to the reported taxable income.
In your case, you were enrolled in NPS at 2010-04-26, and disqualified on 2012-03-12.
For the first year to next year's June (2011), your income basis was 1,200,000 won.
From July, 2012, your income basis was 1,080,000 won.
You don't need to pay if you start working from the first day of a month, so started paying contribution from May, 2010.
In this end, your contribution total is for 23 months, 2,386,800 won.
It seems to be there is a distance between your actual salary and the reported income. If you think this is wrong, you can fix it.
I think the first step is to visit a NPS office and issue your contribution record, and compare it with your salary sheet. And ask your employer to fix it. And also you have to ask your employer to fix the tax report, because your tax was reported your monthly income is 1,080,000 won. Then there will be additional tax for your income.
If your ex-employer is not cooperative, please collect the proof of your salary and ask the branch office (Dong Ulsan Branch) to help. without employer's cooperation, it is not easy to fix it, and you have to mind there will be additional tax on your income.
If you have anyother questions, please let us know.
Sincerely, |
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This is a typical scam. It matches what I had anticipated above almost exactly.
Hopefully you have your contract showing your monthly pay, some kind of monthly pay statements showing your pay and deductions and a bank book or printout showing what you received. Take all those things in and they will take care of your cheatin' boss. |
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Wildbore
Joined: 17 Jun 2009
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| Posted: Fri May 04, 2012 10:41 pm Post subject: |
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| ontheway wrote: |
| Wildbore wrote: |
After inquiring, I got a message from the NPS international office explaining the situation. The salary reported is RIDICULOUSLY low compared to the contracts I signed at 2,000,000 and 2,100,000. I will follow up with the local office and see what happens next.
| Quote: |
I am sorry for your current situation. It must be a big disappointment.
The pension contribution is calculated based on the income, and the income for the first working year (before next years July) is decided by the employer's report. And one for the next year is decided according to the reported taxable income.
In your case, you were enrolled in NPS at 2010-04-26, and disqualified on 2012-03-12.
For the first year to next year's June (2011), your income basis was 1,200,000 won.
From July, 2012, your income basis was 1,080,000 won.
You don't need to pay if you start working from the first day of a month, so started paying contribution from May, 2010.
In this end, your contribution total is for 23 months, 2,386,800 won.
It seems to be there is a distance between your actual salary and the reported income. If you think this is wrong, you can fix it.
I think the first step is to visit a NPS office and issue your contribution record, and compare it with your salary sheet. And ask your employer to fix it. And also you have to ask your employer to fix the tax report, because your tax was reported your monthly income is 1,080,000 won. Then there will be additional tax for your income.
If your ex-employer is not cooperative, please collect the proof of your salary and ask the branch office (Dong Ulsan Branch) to help. without employer's cooperation, it is not easy to fix it, and you have to mind there will be additional tax on your income.
If you have anyother questions, please let us know.
Sincerely, |
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This is a typical scam. It matches what I had anticipated above almost exactly.
Hopefully you have your contract showing your monthly pay, some kind of monthly pay statements showing your pay and deductions and a bank book or printout showing what you received. Take all those things in and they will take care of your cheatin' boss. |
Yes, I have my contracts, bank statements showing the transfers, and a paystub for most months.
This hagwon has also hired a new teacher since I left. Hopefully a government complaint will help encourage compliance in the future. |
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bobbybigfoot
Joined: 05 May 2007
Location: Seoul
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| Posted: Sat May 05, 2012 3:50 pm Post subject: |
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| A common underhanded trick used by devious dishonest hagwon owners. Report the income as far less that it really is. |
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Mr Lee's Monkey
Joined: 24 Oct 2007
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| Posted: Sat May 05, 2012 5:10 pm Post subject: follow up to pension rip off |
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| This happened to me my first year here - the pension office got me the full amount and fined the hagwon owner - he reported I was making 800,000 when I was making 2.4M and he made the deductions for the 2.4M. The unfortunate follow up, FWIW, is that this director had written me glowing references before he got busted. After the fact, he tanked a job prospect for me when he was contacted for a reference. |
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PRagic
Joined: 24 Feb 2006
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| Posted: Sat May 05, 2012 10:56 pm Post subject: |
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1) The hakwon needs to be taken to task over this and big up on the difference owed. Burn the bridge if you have to, but stick to your guns.
2) The National Pension Office should be formally notified that they need to red flag any file coming in with a low ball salary. Nip this crap in the bud. |
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