Deductions from Salary
In many cases employers will only deduct around 4-7% from your total salary and will exclude deductions for the national pension plan. You don’t have to file a tax return in Korea
If your salary is 2,100,000 won , here is example.
Income tax (3.3%) = 69,300 won
Residental tax = 6,930 Won
National Pension = 94,500 won
National Health Insurance= 47,040 won
Total = 217,770 won
1. Income Tax: Current rate is 3.3~7% of your salary depending on how much you make each month.
2. Resident tax (10% of the income tax)
3. National Pension: Current rate is 9% (4.5% will be deducted from teacher’s salary and another 4.5% will be paid by employer.
National Pension Corporation: (http://www.nps.or.kr/ )
Even its mandatory but still lots of hagwons are don't have national pension so please consult about it with your recruiter.
When you leave Korea, you may be entitled to receive both your and your employer's contributions to Korea's National Pension Scheme only if you are a Canadian or American citizen due to an agreement between Korea and USA & Canada.
4. National Health Insurance (company registration, not local registration): Current rate is 4.48% (2.24% will be deducted from teachers salary and another 2.24% will be paid by employer).
National Health Insurance Corporation. (http://www.nhic.or.kr/english/main.html )
5. Housing Deposit: Generally between 400,000 won~600,000 won depending on schools policy (usually deducted from first three months salaries but may be negotiable). This deposit is to cover any unpaid monthly service, utility, telephone charges and etc. at the completion of contract and employer agrees that payment of remaining amounts of the deposit will be made to employee at the end of contract period after all outstanding monthly service, utility, and telephone charges have been paid.