ESL Education (1/1)
Taxation and the 4 major insurances in Korea
Taxation and the 4 major insurances in Korea Income Tax Like any other country, taxes are generated if you have a source of income in Korea. Taxation may however differ depending on mutual government agreements. Taxation eligibility Country Public school Hagwon United States Exemption for 2 years Taxed Canada Taxed Taxed United Kingdom Exemption for 2 years Taxed Ireland Taxed Taxed Australia Exemption for 2 years Taxed New Zealand Exemption for 2 years Taxed South Africa Exemption for 2 years Taxed The 4 major insurances. National Health Insurance: In Korea, employers must provide health and medical insurance. Health and medical insurance may cover medical, dental, or accidental coverage or a combination of the three. If health and medical insurance are covered, the employer may pay for all of it or the employer may pay half. Be sure to ask the employer if the insurance covers international hospitals as well as local hospitals. This is a mandatory subscription. Employment Insurance: It is a national insurance system implemented for protecting workers’ rights and interests. National Pension Scheme: This insurance is created to prepare for the time one is not able to work. (pension after retirement). It is also determined by mutual government agreements. Several countries require employers to pay into a pension, or retirement plan. In most cases, the employer pays half and the teacher pays the other half. Depending on a teacher’s citizenship and the agreement with the teacher’s home country, the pension can be claimed at the completion of the 1-year contract. Industrial Accident Insurance: Compensates the employees for any occupational accident. This insurance option that provides both employees and their employers a certain level of financial protection in case of an injury incurred on the job. 4 major insurances Insurance Employee Employer National pension 4.5% 4.5% National Health insurance 3.545% 3.545% Employment insurance 0.9% 0.9% Industrial accident insuranc N/A Matched by employer Eligibility on national pension Country Membership Subscription Refundable Payment United States Yes Lump-sum return Canada Yes Lump-sum return United Kingdom Yes Non-refundable Ireland Yes Non-refundable/added to native country pension Australia Yes Lump-sum return New Zealand Yes Non-refundable South Africa No N/A