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Korean Job Discussion Forums "The Internet's Meeting Place for ESL/EFL Teachers from Around the World!"
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trueblue
Joined: 15 Jun 2014 Location: In between the lines
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Posted: Sun Jul 20, 2014 7:38 pm Post subject: SMALL hogwans that do NOT pay pension... |
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Hello all,
Is EVERY school required to pay into pension, or must it have a certain amount of employees that remove them from that legal obligation? |
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ontheway
Joined: 24 Aug 2005 Location: Somewhere under the rainbow...
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Posted: Mon Jul 21, 2014 8:50 am Post subject: Re: SMALL hogwans that do NOT pay pension... |
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trueblue wrote: |
Hello all,
Is EVERY school required to pay into pension, or must it have a certain amount of employees that remove them from that legal obligation? |
There used to be an exemption for employers with fewer than 5 employees. It was eliminated long ago. Some people may not be aware that this exemption was eliminated. Others may use the old small employer rule as a ruse.
So, yes every school and every employer is required to enroll you in the National Pension and National Health Insurance. The employer is required to pay half of the monthly bill for Pension and Health Insurance, the employee pays the other half.
(However, if you are hired as an Independent Contractor, then you are required to enroll yourself and to pay 100% of the cost. This is legal on an E2 visa, but it's nearly always a very bad deal for the teacher. You should refuse IC contracts.) |
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trueblue
Joined: 15 Jun 2014 Location: In between the lines
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Posted: Mon Jul 21, 2014 7:32 pm Post subject: |
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Yeah, heard about this. I knew there was some exemption, at one point.
I'm simply trying to help someone out from back home.
Thus, if any school does not pay into the pension scheme, they are choosing NOT to obey the law.... |
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Weigookin74
Joined: 26 Oct 2009
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Posted: Thu Jul 24, 2014 5:06 am Post subject: Re: SMALL hogwans that do NOT pay pension... |
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ontheway wrote: |
trueblue wrote: |
Hello all,
Is EVERY school required to pay into pension, or must it have a certain amount of employees that remove them from that legal obligation? |
There used to be an exemption for employers with fewer than 5 employees. It was eliminated long ago. Some people may not be aware that this exemption was eliminated. Others may use the old small employer rule as a ruse.
So, yes every school and every employer is required to enroll you in the National Pension and National Health Insurance. The employer is required to pay half of the monthly bill for Pension and Health Insurance, the employee pays the other half.
(However, if you are hired as an Independent Contractor, then you are required to enroll yourself and to pay 100% of the cost. This is legal on an E2 visa, but it's nearly always a very bad deal for the teacher. You should refuse IC contracts.) |
If you're an IC, demand 30,000 won an hour minimum (more with experience) and a gauranteed number of hours or pay in lieu of like maybe 22 to 26 minimum. That should be enough for you to pay both you and your employers health care and pension payments along with any tax. DO NOT ACCEPT LESS THAN THESE TWO CONDITIONS EVER FOR AN IC OFFER, EVER!! (Do so only if you're an idiot.) |
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EZE
Joined: 05 May 2012
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Posted: Thu Jul 24, 2014 6:04 am Post subject: |
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Even if you don't accept an IC contract and your employer signs you up as an independent contractor, it's impossible to get out from under that. The people at the tax office, the pension office, and the national health insurance office are cut out of the same cloth as the people at the offices who were supposed to regulate the Sewol. They won't do their jobs. They'll just tell you to talk with your boss. |
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Stain
Joined: 08 Jan 2014
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Posted: Thu Jul 24, 2014 6:29 am Post subject: |
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EZE wrote: |
Even if you don't accept an IC contract and your employer signs you up as an independent contractor, it's impossible to get out from under that. The people at the tax office, the pension office, and the national health insurance office are cut out of the same cloth as the people at the offices who were supposed to regulate the Sewol. They won't do their jobs. They'll just tell you to talk with your boss. |
Precisely |
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tob55
Joined: 29 Apr 2007
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Posted: Thu Jul 24, 2014 1:51 pm Post subject: |
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Regardless of size, employers are obligated to pay into the National Pension. It also doesn't matter is the workers are full or part-time. The amount to pay is usually insignificant for most people, but employers who side step doing this may be attempting to cheat the government OR they already are cheating the government and do not want to be caught. If an employer is not paying the pension, then the employee should contact the Pension Office and file a complaint or else risk having to pay quite a bit in back-payments once things are discovered. I know this from owning and running an academy, so the comments are not based on my opinion, but on my own experience. |
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CP
Joined: 18 Jan 2007
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Posted: Thu Jul 24, 2014 3:07 pm Post subject: |
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HERE ARE THE FACTS STRAIGHT FROM THE PENSION OFFICE:
Persons not deemed as Workplace-based insured Persons under the following criteria are NOT required to be under the National Pension Scheme.
1. Single-day workers or workers employed for a period of less than one month.
2. Workers employed in a workplace, the location of which is not fixed.
3. Part-time workers whose contractual working hours are less than 60 hours a month.
** Also foreigners whose home countries' pension scheme exclude Korean nationals from coverage are likewise excluded from coverage under Korea's national pension scheme. **
Everyone else is obviously required to be covered by the National Pension Scheme.
I am a registered foreigner with an E-2 visa who accepted a part time job with a contract of less than 60 hours a month. I am not legally required to pay into the pension plan, nor is my employer so I won't do it. Even if the law required me to pay into the plan I would just do it myself because I am happy with my current work situation and it wouldn't be worth arguing with my boss for a little more money monthly. It's up to you to decide if it's worth fighting over or not.
The National Health Plan is no different, however every foreigner must be registered under the plan no matter what. You will even be charged for all your missed payments up until the day you sign up. Your employer does not have to provide health insurance to you either. The cost is minimal and it's not worth arguing over, if you have an excellent paying job. As I said I have an E-2 sponsor but I don't receive any basic benefits. So, I signed up for the health plan myself, get the bill directly sent to my place and I pay the bill myself. No problems.
Everyone is in a different situation - you just have to decide if it's worth fighting over at the end of the day. |
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trueblue
Joined: 15 Jun 2014 Location: In between the lines
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Posted: Thu Jul 24, 2014 6:30 pm Post subject: |
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Thank you folks.
If you are are able to receive the pension back (but still have to pay into it anyway) and decide to stay in Korea and venture off to another school, the pension office will take what is theirs, am I right?
So, unless you are here for a "one and done year", I would say it is worth fighting for. |
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Weigookin74
Joined: 26 Oct 2009
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Posted: Sun Jul 27, 2014 6:42 am Post subject: |
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EZE wrote: |
Even if you don't accept an IC contract and your employer signs you up as an independent contractor, it's impossible to get out from under that. The people at the tax office, the pension office, and the national health insurance office are cut out of the same cloth as the people at the offices who were supposed to regulate the Sewol. They won't do their jobs. They'll just tell you to talk with your boss. |
Read your contract. If it's lists a monthly salary versus an hourly wage, that's how you will know. Don't accept unless the wage is listed what I previously mentioned. If it doesn't mention a wage or hourly work, then the contract should mention pension and health care. If it's not in there, don't take the job. |
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