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karenmk
Joined: 28 Aug 2006
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 Posted: Wed Sep 06, 2006 5:52 pm Post subject: Ok what's up with the pensions? |
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| I have been reading a lot of pension questions but none that pertain to me. Is this required in Korea? The job I was offered doesn't mention anything about pensions. Your thoughts? |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Wed Sep 06, 2006 6:01 pm Post subject: Re: Ok what's up with the pensions? |
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| karenmk wrote: |
| I have been reading a lot of pension questions but none that pertain to me. Is this required in Korea? The job I was offered doesn't mention anything about pensions. Your thoughts? |
It is mandatory and it is a legal requirement that you pay into it.
It has been required since the mid-late 1990's (depending on the size of the firm).
If you are from Canada or the USA you can get it refunded when you leave.
It is composed of 2 parts.
Your contribution is 4.5% of your monthly wage.
Your employer is required to match that with an amount equal to 4.5% of your wage.
When you leave you get the 9% back from the government. In effect it is a leaving Korea bonus of 9% of your total wages earned during your stay here.
If you are NOT from the States or Canada then you have to wait until retirement age to collect your Korean Pension.
Most likely, if your employer is NOT paying into pension, they are also probably NOT paying into the National Health Care Plan (also illegal) because if they were it would flag you (and him) for pension. |
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Big Mac
Joined: 17 Sep 2005
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| Posted: Thu Sep 07, 2006 12:52 am Post subject: Re: Ok what's up with the pensions? |
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| ttompatz wrote: |
When you leave you get the 9% back from the government. In effect it is a leaving Korea bonus of 9% of your total wages earned during your stay here.
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This sounds confusing and I'm not sure why this person is explaining it like this. You get all of the money you and your employer put into the pension plan back when you leave Korea...not 9 per cent.
So it is definitely worth your while. You don't lose any money on this....you actually get back double what you put into it.
That's why employers don't want you to do it. It's not you that loses money on it...it's them. |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Thu Sep 07, 2006 1:26 am Post subject: Re: Ok what's up with the pensions? |
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| Big Mac wrote: |
| ttompatz wrote: |
When you leave you get the 9% back from the government. In effect it is a leaving Korea bonus of 9% of your total wages earned during your stay here.
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This sounds confusing and I'm not sure why this person is explaining it like this. You get all of the money you and your employer put into the pension plan back when you leave Korea...not 9 per cent.
So it is definitely worth your while. You don't lose any money on this....you actually get back double what you put into it.
That's why employers don't want you to do it. It's not you that loses money on it...it's them. |
HMMM... lets see...
employee contribution.. 4.5% of gross wages
Employer contribution ...4.5% of gross wages
4.5 + 4.5 = 9.
Refund from the National pension fund = 9% of your total wages earned during your sojourn in Korea (unless of course the rate changes at some point in the future).
9% of gross wages = 100% of total contributions (employee + employer).
Where did you get the impression that I said 9% of contributions??
Too busy and distracted to read completely?? |
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Big Mac
Joined: 17 Sep 2005
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| Posted: Thu Sep 07, 2006 4:56 am Post subject: Re: Ok what's up with the pensions? |
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| ttompatz wrote: |
HMMM... lets see...
employee contribution.. 4.5% of gross wages
Employer contribution ...4.5% of gross wages
4.5 + 4.5 = 9.
Refund from the National pension fund = 9% of your total wages earned during your sojourn in Korea (unless of course the rate changes at some point in the future).
9% of gross wages = 100% of total contributions (employee + employer).
Where did you get the impression that I said 9% of contributions??
Too busy and distracted to read completely?? |
I understood what you were saying. It was just confusing and required me to read it over and think about it...which I don't want to have to do. I was just trying to make it more understandable....because I'm sure others would have been confused about it too. |
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Homer
Guest
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| Posted: Thu Sep 07, 2006 5:11 am Post subject: |
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| By the way Big Mac...not everyone gets the pension back. Only those from countries who have a reciprocal pension deal with Korea get the pension back. |
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mschocokitty
Joined: 31 May 2006
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| Posted: Mon Sep 11, 2006 6:31 am Post subject: |
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| If you break your contract and decide to leave Korea, do you get back the pension for the wages earned? |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Mon Sep 11, 2006 7:00 am Post subject: |
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| mschocokitty wrote: |
| If you break your contract and decide to leave Korea, do you get back the pension for the wages earned? |
Yes, it is from the government.
You get it all back, your contribution and your employers contribution as well (assuming your boss paid it and didn't cheat you out of it). |
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mschocokitty
Joined: 31 May 2006
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| Posted: Mon Sep 11, 2006 9:05 pm Post subject: |
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| Good to know. Thanks for the swift reply. |
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semphoon
Joined: 18 Nov 2005
Location: Where Nowon is
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| Posted: Mon Sep 11, 2006 10:31 pm Post subject: |
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I have a friend from the UK. His boss isnt paying pension.
Because the Brits dont receive the pension back, is his boss doing him a favor by not deducting the pension 4.5% from his wages in the first place? |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Mon Sep 11, 2006 11:14 pm Post subject: |
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| semphoon wrote: |
I have a friend from the UK. His boss isnt paying pension.
Because the Brits dont receive the pension back, is his boss doing him a favor by not deducting the pension 4.5% from his wages in the first place? |
Yes and no.
Yes, cause the 4.5% is in his pocket now.
No, cause when he retires he will be eligible for it anyway.
The only real difference is that Canadians and Americans can get a cash refund to put into their personal retirement funds at home.
The others have to wait until retirement to collect their pension but don't you have to wait until your retirement to collect at home too? |
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Speakerz
Joined: 17 Jul 2006
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| Posted: Tue Sep 12, 2006 3:26 am Post subject: |
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For CDI contracts it has been explained to me that it is a little bit different if you work hourly. Can anybody comment on that?
If you need the specifics on it, i can write them out, but there should be enough contracts posted on here.
The reasoning that has been explained to me is that you are considered a part time employee so your boss is not required to pay into your pension.
Any thoughts? |
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ShaneM
Joined: 03 Feb 2005
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| Posted: Tue Sep 12, 2006 4:17 am Post subject: |
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| I just got my first paycheck and I had no taxes, no medical, no pension taken out. Obviously this is illegal. My coworkers have been trying to get our director to get us signed up for medical for awhile now and she keeps putting it off, obviously. What problems could this cause for me? |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Tue Sep 12, 2006 1:34 pm Post subject: |
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| ShaneM wrote: |
| I just got my first paycheck and I had no taxes, no medical, no pension taken out. Obviously this is illegal. My coworkers have been trying to get our director to get us signed up for medical for awhile now and she keeps putting it off, obviously. What problems could this cause for me? |
It means you have no medical insurance if you need to see a doctor. If/when you do get signed up you will have to backpay from the time of your entry into Korea.
You are also liable for the tax issues - tax evasion / tax fraud.
Lack of the pension is just your loss. You lose out on her contribution to your pension.
If she is dragging her feet, then a pay visit to the local office of the NHIC and sign yourself up. Then just present her with the receipt and get your 1/2 from her. You will need a copy of your contract and your ARC to sign up. Same with pension. They will chase her for her contribution.
Contact the tax office and tell them that she is NOT taking taxes and you want to make sure they are paid. They will take care of that for you as well.
This MAY upset your boss cause now she will have to pay into these (extra expenses for your benefit that come out of her profits). |
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susmin
Joined: 04 May 2003
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| Posted: Tue Sep 12, 2006 1:44 pm Post subject: |
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| If you work for a place with fewer than 5 employess, I believe they are not required to pay into pension. |
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