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is so delicious
Joined: 28 Apr 2009
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Posted: Thu Jan 10, 2013 9:26 pm Post subject: Housing allowance included in my bonus/severance pay?! |
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My co-worker recently said it was. This is news to me. Is this true? I know my employer is going to claim otherwise, so just want to know if I have some ammo to combat him on this. |
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YTMND
Joined: 16 Jan 2012 Location: You're the man now dog!!
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Posted: Thu Jan 10, 2013 11:52 pm Post subject: |
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Highly unlikely. If you get 12 months housing allowance, 2 flights, pension for 12 months, and 13 months of salary payment, move on. |
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cincynate
Joined: 07 Jul 2009 Location: Jeju-do, South Korea
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Posted: Fri Jan 11, 2013 1:14 am Post subject: |
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YES!.. If your employer provides housing, it is considered a benefit and is not taxed. However, if your employer gives you a housing allowance, it is considered salary by the government. Therefore it is used in calculating your tax, insurance premium, pension contribution, AND severance payment.
Salary (2.3mil + housing 500,000 = 2.7 million/month.) Your severance should be 2.7 million! |
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Wildbore
Joined: 17 Jun 2009
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Posted: Fri Jan 11, 2013 2:10 am Post subject: |
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cincynate wrote: |
YES!.. If your employer provides housing, it is considered a benefit and is not taxed. However, if your employer gives you a housing allowance, it is considered salary by the government. Therefore it is used in calculating your tax, insurance premium, pension contribution, AND severance payment.
Salary (2.3mil + housing 500,000 = 2.7 million/month.) Your severance should be 2.7 million! |
A housing allowance is just that, an "allowance." Although it is considered taxable income by the tax office, it DOES NOT fall under the definition of wage/salary under Labor law, therefore not used for the calculation of severence. This is the same reason why cash for an airfare ticket wouldn't be included in severence. Labor law is what matters, not what the tax office thinks. |
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ttompatz

Joined: 05 Sep 2005 Location: Kwangju, South Korea
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Posted: Fri Jan 11, 2013 2:39 am Post subject: |
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www.moel.go.kr/english/download_eng.jsp?type=&file=(31)LABORSTANDARDSACT_2012.pdf
You might want to read article 2 sub 5 & 6 of the labor standards act:
5. The term �wages� in this Act means wages, salaries and any other money and valuable goods an employer pays to a worker for his/her work, regardless of how such payments are termed.
6. The term �average wages� in this Act means the amount calculated by dividing the total amount of wages paid to the relevant worker during three calendar months prior to the date on which the event necessitating such calculation occurred by the total number of calendar days during those three calendar months. This shall also apply mutatis mutandis to less than three months of employment.
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Gamja-tang
Joined: 23 Oct 2011
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Posted: Fri Jan 11, 2013 8:54 am Post subject: |
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I was going to fight for my housing allowance too before I left, but decided against it after looking at the Ministry of Employment and Labor's website. There are multiple questions asking about this under the Q&A section, just search for "housing". There is one basic criteria for housing to be included in severance. It must be paid "periodically and uniformly to ALL employees".
2) Housing allowance 주택수당
This is payment for a worker's living support or welfare, regardless of the number of working hours.
동 수당은 근로시간수와 무관하게 근로자의 생계보조 또는 복지를 위해 지급됩니다.
- In cases where it is rendered periodically and uniformly to all workers,
it is wage included in average wage
모든 근로자에게 정기적으로 일률적으로 지급된다면 평균임금에 포함되는 임금이고,
- In cases where it is rendered temporarily or to only to some worker, it is not wage. So, it is not included in average wage.
동 그품이 단지 일시적 또는 일부 근로자에게만 지급되는 경우 임금이 아니고, 평균임금에 포함되지 않습니다. |
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is so delicious
Joined: 28 Apr 2009
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Posted: Wed Feb 20, 2013 6:47 pm Post subject: |
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ttompatz wrote: |
www.moel.go.kr/english/download_eng.jsp?type=&file=(31)LABORSTANDARDSACT_2012.pdf
You might want to read article 2 sub 5 & 6 of the labor standards act:
5. The term �wages� in this Act means wages, salaries and any other money and valuable goods an employer pays to a worker for his/her work, regardless of how such payments are termed.
6. The term �average wages� in this Act means the amount calculated by dividing the total amount of wages paid to the relevant worker during three calendar months prior to the date on which the event necessitating such calculation occurred by the total number of calendar days during those three calendar months. This shall also apply mutatis mutandis to less than three months of employment.
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Yup... I don't see how my employer can fight me on this. I get 2.3 + .7 for housing, every month. If that's the average amount of monthly pay, it looks like that's what I'm owed for my severance.
Man... my school is NOT doing well financially, and now they suddenly owe me like ten million WON. Or not suddenly, I guess, but... I have a feeling this might end up in court. |
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newb
Joined: 27 Aug 2012 Location: Korea
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Posted: Wed Feb 20, 2013 11:02 pm Post subject: |
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YUM YUM~  |
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watergirl
Joined: 01 Jul 2008 Location: Ansan, south korea
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Posted: Thu Feb 21, 2013 12:48 am Post subject: |
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That's very interesteing. But I think you're forgetting about all the Korean teachers a the school who don't get a housing allowance |
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is so delicious
Joined: 28 Apr 2009
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Posted: Thu Jun 06, 2013 1:36 am Post subject: |
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Just wanted to bump this. I would think it's come up before and been an issue for many specific people. When people get their bonuses, are their housing allowances included?!
I've been trying to call the labor board all day, but the number's been busy.
Anyone have a good lawyer for when my snake of an ex-boss officially refuses to pay what he owes? I have to leave Korea in a month or two, and I gotta get this taken care of. |
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Weigookin74
Joined: 26 Oct 2009
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Posted: Sun Jun 09, 2013 5:48 pm Post subject: |
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I worked public school and got my severance until this year. (Won't get paid out from now on until I finish employment.) My severance was based on the actual salary and not the housing allowance. I think being the government, the local ed office goes by the rules in these regards. (Local schools or rural ed offices maybe not so much.) Anyways, I would say fight it if you want but it probably won't go anywhere. |
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newb
Joined: 27 Aug 2012 Location: Korea
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Posted: Sun Jun 09, 2013 7:02 pm Post subject: |
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Weigookin74 wrote: |
I worked public school and got my severance until this year. (Won't get paid out from now on until I finish employment.) My severance was based on the actual salary and not the housing allowance. I think being the government, the local ed office goes by the rules in these regards. (Local schools or rural ed offices maybe not so much.) Anyways, I would say fight it if you want but it probably won't go anywhere. |
No, the labor law in this matter is very clear cut. If you've been working for the same employer for 5 years like me that's quite a bit of money.
All it takes is just a phone call to the labor board and the labor inspector will set things straight with your employer.  |
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ttompatz

Joined: 05 Sep 2005 Location: Kwangju, South Korea
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Posted: Sun Jun 09, 2013 7:06 pm Post subject: |
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Might take more than a simple phone call.
Foreigners who make calls usually get a song 'n dance or just ignored and sent away.
Go in and make the complaint (in writing).
Take a Korean with you if needed to deal with the paperwork.
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