Korean Job Discussion Forums

[classydame]

So, I've been working at a hagwon since mid-December and so far things are OK. My apartment is great, I was paid back for my plane ticket, and the kids are (mostly) cool. I got my ARC this month and the boss is figuring what the deductions will be beginning in January.

There are 2 problems: (1) I make 2.1 million a month. The boss suggested that he claim me as making about half that while the rest would be paid under the table. I noted that as an American I would get all of my pension back anyway. My boss called someone (speaking in Korean which I can't understand) and told me sorry, that's not true.

(2) Some of the figures sound a little off. I was told these were the deductions that would need to be made (all split): pension-9%, medical insurance- 5.33%, long-term medical- 13.1%, and workman's insurance-1.15% (optional). Those sound fine except the long-term medical insurance. Do foreigners have to pay that?

Basically, I told him that I would run some numbers and get back to him on his suggestion. I do feel a little bit uncomfortable being put into this position. I would prefer to do things legit but now I feel worried that there will be more potentially sketchy situations to come. I don't want to rock the boat but I don't want to get screwed. Advice?

[Jbko]

There will be no potentially sketchy situations.
Just go ahead , Don't worry! Relax

[classydame]

Whenever I hear "relax" I think of that scene in Zoolander where the prime minister of Malaysia's head almost gets torn off! So yeah, not comforting:)

[Big Mac]

Yeah, your boss is a typical lying, pull the wool over the eyes of the foreign teacher scoundrel. Stories like this one abound here.

You are American. Americans, Canadians and Australians get a lump sum refund when you leave Korea permanently. All you have to do is go to the pension office before you leave to apply. If you want to get that from the horse's mouth and bring that to your boss, go to the National Pension Service's website at http://www.npc.or.kr or call them at 1355.

Not only is he lying to you on that, he is also telling you that you have to pay your amount AND his amount. You pay 4.5 per cent and your boss pays 4.5 per cent. Yes, that's nine per cent total...but you only pay HALF. What a cheapskate!! Again, call the pension office if you don't believe me.

He is also trying to get you to pay his half and your half of the medical insurance too. That works just like the pension, only it's about 2.5 per cent instead of 4.5 per cent.

Long term medical...what the hell is that? You don't have to pay that. That's bullshit. Never even heard of it. That's money in your boss's pocket. If you want to get your own insurance to supplement the national medical insurance, that's wise (though I've never done it) but find out about it on your own...don't do it through your boss or risk being cheated.

Foreigners don't have to pay unemployment insurance.

You never mentioned tax, but it should be 25,810 Won per month on a salary of 2.1 million. You can confirm that at this website: http://nts.go.kr/eng/help/help_52.asp?top_code=H001&sub_code=HS05&ssub_code=HSE2

Oh and please don't let him play games with the numbers by claiming that you are being paid less than you are. I mean, come on, that sounds suspicious, doesn't it? Only you are going to be hurt by such an idea. Tell him you want everything to be above board and tell him you'll be checking with all the authorities to make sure he really is paying the correct amount. And do that too...because obviously he is less than honest in more ways than one.

Let this be a lesson learned. Never trust a Korean, especially your boss. They will lie to your face and not even think twice about it. They'll also steal and pocket your money without blinking an eye...unless they are caught that is. Even then, they'll deny that there was any wrongdoing.

If your boss gives you a hard time, tell him that you will be leaving and going to work elsewhere. Better yet, let him fire you. You don't want to work at a place like this. It will only get worse.

[classydame]

What a helpful response! Thank you! I thought the long-term medical sounded strange. I think it might be for Koreans in case they need long term care when they are elderly? I'll print out the information from these links and show my boss.

[Big Mac]

If you need info on the health insurance, you can look here:

http://www.nhic.or.kr/portal/site/eng/

[Jbko]

Hey I still say relax

[Big Mac]

[ontheway]

1) Paying you under the table means he wants to save a lot on his taxes by making his business look smaller.

In addition, unless he pays you the difference, he will be saving by paying less for your pension. This means you get less back when you leave. You and your boss should each pay 4.5% of your salary and you get it all back when you leave, whenever you leave, no matter how long you stay in Korea (possible exceptions begin after retirement age begins at age 60).

2) The health ins. and pension amounts, all split as you say, are about right.

I would opt out on the workman's insurance.

As to the long-term medical, it could be a real policy, but you should decline. It is not required and probably has no value to you even if you do spend a lifetime in Korea. It also could be a scam to skim off 6.55% of your salary (your share of the split).

If the long-term medical is in your contract and you cannot opt out, demand to see a policy, and try to get out of it.


My advice:

Stay legal. Report your entire 2.1 mil salary.

Pension and health ins. are about correct if you pay based on 2.1.

Decline workman's ins.

REFUSE the long-term medical.

[Big Mac]

Oops. I missed the part where you said your pension and medical insurance are both split. In that case, both amounts are correct.