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tarrare
Joined: 28 Mar 2013
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 Posted: Tue Apr 23, 2013 11:57 am Post subject: Pension and Healthcare Questions |
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I have a job offer from a hogwan in Gwangju. The contract states I will be covered by the Korean Medical Insurance Union, and I will split the bill 50/50 with my employer. There is no mention of pension.
I asked the manager about these issues she said some teachers don't want pension because it subtracts from each monthly paycheck. I know she is probably trying to avoid having to match my monthly payments, but this isn't an issue for me - she's right, I'd rather have that money every month. My question is, is this legal? Can I get in trouble for working in Korea and not paying into pension?
I also want to make sure there won't be any legal issues regarding healthcare. Prior to receiving this contract I had been under the impression all ESL teachers were required to seek coverage under the Korean Government's healthcare program. Will I be okay paying for coverage elsewhere?
Thanks Dave's. |
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ontheway
Joined: 24 Aug 2005
Location: Somewhere under the rainbow...
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| Posted: Tue Apr 23, 2013 12:33 pm Post subject: Re: Pension and Healthcare Questions |
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| tarrare wrote: |
I have a job offer from a hogwan in Gwangju. The contract states I will be covered by the Korean Medical Insurance Union, and I will split the bill 50/50 with my employer. There is no mention of pension.
I asked the manager about these issues she said some teachers don't want pension because it subtracts from each monthly paycheck. I know she is probably trying to avoid having to match my monthly payments, but this isn't an issue for me - she's right, I'd rather have that money every month. My question is, is this legal? Can I get in trouble for working in Korea and not paying into pension?
I also want to make sure there won't be any legal issues regarding healthcare. Prior to receiving this contract I had been under the impression all ESL teachers were required to seek coverage under the Korean Government's healthcare program. Will I be okay paying for coverage elsewhere?
Thanks Dave's. |
The school is planning on treating you as an Independent Contractor. If they're being honest, the contract will state this clearly. It is legal to be an E2 teacher and an IC, but it's dishonest and in some cases fraudulent when schools try to hide this fact. If they are hiding the IC status, they have already tipped their hand to the way they will treat you.
As an IC, you are legally responsible to pay 100% of your own Pension and 100% of your National Health Insurance. You are not legally exempt as an IC. Legally, you have to pay the National Health Ins. even if you have some other insurance. Sure, you may not get caught, but some do, and you might be desperate ... and for that I am sorry and can't advise you.
If do you take such an IC job, you should demand quite a bit more pay, depending on the other terms of the contract. However, the school is not likely to pay you more since someone will take this job even if you don't - times are tough and people are hurting.
Depending on where you are from you can get 100% of your Pension payments refunded to you when you finish working in Korea. If you take a job as an employee, your employer will pay half of your Pension and Health Insurance and you will come out ahead in the long run.
You will be better off finding a job as an employee. I always recommend that newbies on E2 visas turn down IC jobs when they are aware of what is happening. Make sure your contract states clearly that you are an employee. Make sure that your contract mentions National Health Ins and National Pension split 50/50 with your employer. Make sure that your Income Tax withholding rate is under 2% (assuming your pay is in the normal range).
IC contracts can be better for F visa holders and a few E2 visa holders who have the personality and work ethic to work the extra hours and seek out multiple contracts that make use of this status. In a very few schools, there are benefits to the IC status that make using it legitimately and legally beneficial to both the teacher and the school even at one location. This is rare, and for most people reading this ... This means NOT you.
It isn't worth trying to fight the legality of the IC status: It is legal and not about to change in the near future. There is no law or rule against it. The smart move is to avoid it. For nearly everyone, you should reject IC contracts and keep looking. |
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tarrare
Joined: 28 Mar 2013
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| Posted: Tue Apr 23, 2013 12:59 pm Post subject: |
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Thanks for the quick response.
The contract states I am an "Employee," but I've picked up from other threads this isn't a guarantee I will be treated as one.
I'll see if I can negotiate with the manager to have pension and Government Healthcare included in the contract. Most of my contact with the school at this point has been with the two current teachers; they conducted my interview and recommended me for the position. I haven't gotten the sense that anyone is trying to fool me or lie by omission at this point - everything I've asked, they've answered thoroughly and right away. I'll ask them about their healthcare and whether they have pension. |
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