Read 1916 times

  • ninnik
  • Waygookin

    • 12

    • May 10, 2011, 10:55:43 pm
    • Korea
Severance Question
« on: January 13, 2017, 02:20:39 pm »
About to re-sign for a new contract. 

My 2016-2017 current contract: basically 2.4 + 0.4 housing allowance = 2.8/month and therefore, a 2.8 severance.

New 2017-2018 contract: 2.5 + 0.4 = 2.9/month so, 2.9 severance BUT, that's not how it's termed... my employer saying something about some new issue with the tax/relevant office, and that it will be basically 2.7 + (0.2 housing allowance)>but that doesn't get counted, so... = 2.7 severance.

Anyone hear anything about something similar to that?

*(Also, as an aside... in cases like salary + housing allowance, does your severance get taxed?)


  • KimDuHan
  • Hero of Waygookistan

    • 1244

    • January 15, 2015, 11:48:59 am
    • Seoul
Re: Severance Question
« Reply #1 on: January 13, 2017, 07:57:58 pm »
Housing usually isn't counted in severance even though it is taxed!

So sketchy hagwons will pay you the housing in cash to save on taxes and give you double housing on the last month.


  • donuts81
  • Hero of Waygookistan

    • 1364

    • October 20, 2010, 10:23:37 am
    • Korea
Re: Severance Question
« Reply #2 on: January 16, 2017, 02:30:43 pm »
About to re-sign for a new contract. 

My 2016-2017 current contract: basically 2.4 + 0.4 housing allowance = 2.8/month and therefore, a 2.8 severance.

New 2017-2018 contract: 2.5 + 0.4 = 2.9/month so, 2.9 severance BUT, that's not how it's termed... my employer saying something about some new issue with the tax/relevant office, and that it will be basically 2.7 + (0.2 housing allowance)>but that doesn't get counted, so... = 2.7 severance.

Anyone hear anything about something similar to that?

*(Also, as an aside... in cases like salary + housing allowance, does your severance get taxed?)

He's probably fiddling around with it to make it better for him, not sure how it affects you at least you're getting it (partially) included. If the 200 extra is not included does that mean it's not getting taxed through the year (ie 2.7 is taxed not 2.9)? If that's the case it could be okay. If not then I guess you're missing out on 200 that should probably be yours.

*I haven't heard of the special rule your boss is talking about. It could be true but you know.....hagwon.

.... And yep, everything in your severance is taxed.
"You can't hurt me now, Mr Lee. I've lost all feeling"


  • Schellib39
  • Expert Waygook

    • 773

    • March 10, 2011, 03:08:04 pm
    • South Korea
Re: Severance Question
« Reply #3 on: February 06, 2017, 01:39:53 pm »
I'm in the same position, where I am given a housing allowance and it is taxed as income. Could anyone answer why that money is taxed as income if it won't be included in your severance? I can understand it not be included in the severance if it is not taxed, but just failing to see how it shouldn't be included if taxed...Any responses would be greatly appreciated.


Re: Severance Question
« Reply #4 on: February 06, 2017, 02:47:51 pm »
Ulsan MOE sent out an email in summer of 2016 stating that the housing allowance would be included in the severance if you recived it during the final three months of work. So maybe talk to someone from your MOE.

I'm in the same position, where I am given a housing allowance and it is taxed as income. Could anyone answer why that money is taxed as income if it won't be included in your severance? I can understand it not be included in the severance if it is not taxed, but just failing to see how it shouldn't be included if taxed...Any responses would be greatly appreciated.


  • donuts81
  • Hero of Waygookistan

    • 1364

    • October 20, 2010, 10:23:37 am
    • Korea
Re: Severance Question
« Reply #5 on: February 06, 2017, 03:01:29 pm »
Quote
I can't see how it benefits the employer at all to give you 400 000 won a month rent and then have to pay you another 400 000 won as severance at the end of the contract.  As opposed to them paying the 400 000 won rent to the landlord and not having to pay you an extra 400 000 won in severance.  You didn't really 'earn' that extra 400 000 won. But it's horses for courses, I suppose.

They don't have to pay real estate letting fees or put down a housing deposit. It's much cheaper and less messy for them. Earning doesn't really have anything to do with it, why wouldn't you have earned it? It's part of your remuneration. Mostly employers are simply using the fact that it's a bit of a grey area and that foreigners don't really have much of an idea about employment law.

My boss pays me varying amounts of housing each month specifically so that she doesn't have to include it in my severance. She hires a lot of F-2's so i guess someone had the time and a motivated spouse to have her on about it.
"You can't hurt me now, Mr Lee. I've lost all feeling"


  • Schellib39
  • Expert Waygook

    • 773

    • March 10, 2011, 03:08:04 pm
    • South Korea
Re: Severance Question
« Reply #6 on: February 06, 2017, 03:09:01 pm »
Ulsan MOE sent out an email in summer of 2016 stating that the housing allowance would be included in the severance if you recived it during the final three months of work. So maybe talk to someone from your MOE.

I've spoken to my MOE (just last week), and it is not included in ours still. Just searching for an answer as to why it is included for some and not included for others. I think that if I am being taxed for income on my housing allowance, then it should be included in my severance.

Though thanks for your reply about it, and lucky you for having it included in yours.