Korean Job Discussion Forums

[Darkness]

Do Canadians get there full pension back at the end of the contract??

[Big Mac]

Yes, you get back what you pay and what your boss pays when you leave Korea. You have to go to the pension office and apply though.

[Darkness]

Ok so here's the scenario then:

I havent been paying into my pension, I KNOW this, my tax is only W72,000 off of 2.2mil every month. I've been here 8 months, and I want this money...

I have a letter stating how much I was paying in taxes, with the school's stamp. I have my contract and all necessary doc's..I'm wondering how I can get my money? Should I wait till the end of my contract and tell them to give me the 1mil, or threaten to go to the labor board?

How should I handle this, I want that 1mil!

[Big Mac]

I would agree that your boss has not been paying into your pension fund and that you will not see any of that money. This is common in Korea. Even though it is mandatory (as is National Health Insurance), a lot of hogwans will not pay into the fund in an attempt to save money. Some hogwans will also overtax you and pocket the rest, which appears to be the case with you.

Here is what your deductions should look like if your boss is doing everything above board. You should ask him to break it all down for you if he claims to be lumping it all under the heading of "taxes," which I don't think he is doing in your case.

1/ Taxes. On 2,200,000 Won you should be paying 49,720 Won a month. This is according to the National Tax Service website, which you can view at http://nts.go.kr/eng/. Click on "Monthly Witholding Tax." The numbers on my paystub match the numbers on this website exactly, so if your boss tells you your rate is different, he's full of it.

2/ Pension. The rate used to be 4.5 per cent for both you and your employer. Recently it went up. The rate my employer is using is 5.16 per cent. So that means on 2,200,000 Won, you should be contributing 113,520 and your boss should contribute the same amount. If you leave Korea at the end of your contract, you should get a refund in the amount 2,724,480 (It may be lower if you started before they changed the percentage). You need to insist that your boss start paying into this fund immediately. If he hasn't been, then you should ask him to make retroactive payments, but note that it would mean you would have to make retroactive payments as well. But remember, you get double back, so it is a good investment. If he doesn't want to do that, call the pension office and report him. It's law that he has to pay.

3/ Health insurance. It is also mandatory that you pay into health insurance. Again the rate recently went up from 2.2 per cent to 2.38 per cent. So that means on 2,200,000 Won you should be paying 61,600 Won into health insurance, which should be matched by your employer in the same way as the pension. A lot of hogwans who don't pay pension also don't provide this insurance.

I hope this helps you. I certainly wouldn't let this go. However, be prepared for a battle with your boss. The reason I know all these figures is because I had a similar battle at my first job in Korea. I won, eventually, but it was ugly. My advice would be to never sign a contract in the future that doesn't mention health insurance and pension.

[ttompatz]

[littlelisa]

[Darkness]

Should I call the pension office, or should I just tell my hogwon to give me a million won right before I leave, then I dont have to go through all the problems of going through the pension office/labor board.

[Typhoon]

Pension office will do it for you. They will call the school, ask about pension, why it wasn't paid etc. Then if the school should be paying pension the office will make them pay it and then fine the school for skipping out on paying. The labour office has nothing to do with this. It is not a contract issue. It is a national law. If you want it and the school falls into the category of having to pay pension (small schools are not required to pay)they have to pay. No hassle. Just call give your ID #, schools name, owners name and phone number. I did this and the pension people called me several times to let me know what was happening and my school director called me fuming. The pension people are great...much easier than labour board/contract problems.

I wouldn't wait. The sooner you get it straight the better off you will be.

[ttompatz]

[Darkness]

Well I dont want to piss them off just yet, so I thought I could just tell them instead of going to the Labor Board they could just give me the money.

Or I could wait until I have one month left in my contract then bring it up...

[ttompatz]

[Darkness]

Ok, so they'll want my money first, then they'll go after the hogwon.

Once they get the money from the hogwon, how do I go about getting my pension back?

Will the pension place take credit card?

[Big Mac]

I would try, at least, to resolve this with your boss first before calling the pension office. I think he would respect you more if you try straightening it out with him first before tattling on him to the pension office. Just make it clear that if he can't resolve this one-on-one you will be making a call to the pension office and that it will end up worse for him if you do that because it may result in a fine.

Expect an angry response. Also expect it to possibly deteriorate your relationship with your boss for the rest of the year, which is what happened with me. I guess his response will depend on how calmly you handle the situation.

To answer your question about how to get it back...before you leave Korea you go to the pension office. They will give you a form to fill out. You need to present them with a plane ticket showing that you will be leaving the country. You also provide them with a bank account number in your name in Canada where they can wire you the money. I've heard anything from two weeks to three months in terms of how long it will take to get the money after you leave.

[Darkness]

Well they already dont like me cause I quit, then I took it back, haha.

I think I will wait 6 weeks before I am to finish, then bring it up with him.

When is the last date of work, the date on yoru ARCard? Or the day on your contract? Or the day I arrived in Korea?

[Big Mac]