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DEDUCTIONS

TAXES
All instructors working in Korea on an E-2 visa pay Korean taxes. You will be required to pay anywhere from 3-5%. It is your employer’s responsibility to file this on your behalf. Though you pay taxes here in Korea, you are not exempt from filing taxes in your home country, whether it is Canada or the U.S. There are specific policies on foreign-earned income. These discern whether or not you are liable for paying tax to your home country on income earned in Korea. Further information is available at your embassy or on either of the websites below.

PENSION
All Foreigners residing in Korea must pay into a National Pension Plan. However, some schools bypass this payment. This is similar to Social Security for Americans and Canadian Pension Plan for Canadians. The employee pays 4.5% of their salary into the pension and that is matched by the employers 4.5%. Canadians, upon leaving the country, are entitled to receive both their employer’s contribution to the fund as well as their own contribution. Please refer to the websites for more details. Just recently, Americans are also able to receive the full pension upon returning to America.

UTILITIES
Utilities are paid by the employee at the end of each month. These include: Gas, Electricity and Internet/Cable TV. The amount varies depending on your location in Korea, and also the size of your apartment. If you have a studio apartment you can expect to pay the equivalent of $100-$170 USD. For apartments with 1 bedroom, the cost is usually $150-$300 USD. The utilities are non-negotiable. Either the amount owed is taken directly from the employee's pay, or the employee must go to the bank to pay the bill. All bills in Korea are payable at the local bank office.

DAMAGE DEPOSIT
When an employee arrives in their new apartment, they will be expected to pay a damage deposit for any damages that may occur while the teacher is living there. This damage deposit ranges, but usually it is $200 for the first 3 months. The deposit is taken directly out of their salary. Upon completion of their contract, the employee is entitled to their full deposit UNLESS they have damaged the apartment in some way, shape or form. Normal wear and tear will not be charged.

Canadian Government Website
USA Government Website

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