Korean Job Discussion Forums

danby_ll · Joined: 06 Dec 2006

I finish my curent contract at the end of February. I've been at the school for 5 years and collected severance at the end of each of my first two years and then they changed the law so that we get a lump severance pay when we leave the company. So I should be getting severance for 3 years of work.

I'm wondering how much to expect to receive for my severance pay. My base salary is 2.55 million. From that amount I obviously get deducted tax, pension, and health insurance. BUT I also get deducted an extra 180,000 won each month for my housing since I live in a nicer than average apartment that costs more than the housing allowance they were to give me if I had found my own place.
I'm assuming that that 180,000 (x 3) will not be taken out of the severance. Am I correct? And am I right to believe that pension/health insurance are also not deducted from severance?

So should I be getting 2,550,000 x 3 = 7,650,000 minus taxes plus my regular salary?
Thanks so much to anyone who can answer. I feel kinda stupid not being sure of this after so long in Korea.

schwa · Joined: 18 Jan 2003 Location: Yap

What does your boss say?

Aine1979 · Joined: 20 Jan 2013 Location: Incheon

Asking your boss may well be the simplest thing to do. My boss paid me severance at the end of my last contract as he didn't know the law had changed, and I got severance equal to my salary and housing allowance, when I was only expecting to get my salary.

Like you, I have a deduction from my salary (100,000₩) as the apartment we live in now is slightly above housing allowance, and my boss pays my rent before I get my pay (so I don't have to pay tax on the housing allowance).