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Salary, Benefits & Deductions

Teaching in Korea offers a higher salary than many other countries offering English teaching opportunities, yet has a relatively low cost of living. Contracts also include free housing and round trip airfare, and bonuses like settlement allowances, severance pay and rural allowances.

The following goes into detail about the salary and benefits you can expect as a native speaker English teacher, as well as explaining the deductions taken from your monthly paycheck:

A. Salaries
B. Housing
C. Overtime
D. Sick Leave
E. Paid Vacation
F. National Holidays
G. Airfare
H. Medical Insurance
I. Severance Pay
J. Income Tax
K. National Pension
L. List of Deductions

 A. Salaries

Most public schools offer salaries starting at 1.8 or 2.0 million won per month (depending on the Provincial Education Board) for those who have no experience and no qualifications (TESOL/TEFL/TESL/CELTA courses that have less than 100 hours of training hours don't count). For those with a year of teaching experience, a degree in education , teaching license or a recognized teaching certificate, most schools tend to offer 2.0 to 2.3 million won per month.

The pay rate at private language institutions, or hagwons, ranges from 1.9 to 2.2 million won per month. Institutes that exclusively hire very well-qualified teachers (with education degrees or teaching licenses) may offer higher salaries. Laws in Korea that limit the amount of tuition fees hagwons can charge students have resulted in compensation packages that do not always adequately reward good qualifications and experience. Highly-qualified teachers often receive a 10 - 20% premium on the usual salary rate. Be cautious with any contract that promises an unusually high salary, as they often entail considerably more contact teaching time than usual, or additional responsibilities.

Some schools, especially public schools in more rural areas, will pay higher salaries, as a rural allowance of 100,000 to 200,000 won is given in addition to the base salary

Salaries are almost always paid monthly, as is true throughout Asia. Paydays range from the last day of the month worked to the 15th day of the following month. Your payday will be clearly stated in your contract.

For public schools, unless privately owned with a board of directors, salaries are non-negotiable. This is because the Provincial Education Board sets the pay scale for teachers who are hired by their schools. The following shows the pay scale that is widely used by Education Boards, with the exception of Seoul. This chart shows the overall amount of pay, and can vary from province to province.

Level

Requirements

Monthly Base Salary

Level1

A Teaching Certificate for Elementary or Secondary School, and at least two years of full-time teaching experience in any discipline at accredited institutions

Net 2,300,000 KRW
per month

A Master's Degree, and at least two years of full-time English teaching experience at accredited institutions

A TESOL, TEFL or CELTA certificate comprised of a minimum of 100 course hours, and at least two years of full-time English teaching experience at accredited institutions

A Bachelor's degree in Education, and at least two years of full-time English teaching experience at accredited institutions

Level2

A Teaching Certificate for Elementary or Secondary School

Net 2,000,000 ~ 2,100,000
KRW
per month

A TESOL, TEFL or CELTA certificate comprised of a minimum of 100 course hours

A Master's Degree or Graduate Diploma from a minimum of 2 years of study

A Bachelor's Degree, and at least one year of full-time English teaching experience at accredited institutions

A Bachelor's Degree with a major in Education

Level3

A Bachelor's Degree, with no other certificates or experiences mentioned on Category 1 and 2. This is the pre-requisite.

Net 1,800,000 ~ 2,000,000
KRW
per month

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 B. Housing

The following housing options are the most common that are offered to native speaker English teachers: Single Private Housing, a Housing Allowance and Shared Housing. Teachers may also choose to seek housing in dormitories or Lodging Houses (Hasuk) and Homestays. Before accepting a position, it's important to know which housing options are available and would best suit your needs.

With all housing options, utility bills are the responsibility of the teacher and should be paid monthly. Some apartments have a high maintenance fee, depending on the type and location of the unit.

a. Single Private Housing
This option is popular among teachers who are new to Korea. Schools usually provide their teachers with a single unit near the school, either within walking distance, or a short bus or subway ride. Teachers are often provided with a studio apartment, but may also be housed in an apartment of faculty residence or dormitory, a leased house, or other type of apartment. This varies by location and teaching situation. Schools will both select the apartment and take care of the lease. Teachers may be responsible to pay Key Money (deposit), usually 500,000 won, which would be returned at the end of the contract, minus the last month's utilities. The school will provide furniture (such as a bed, table and chairs, a closet, a range, a refrigerator, a washing machine, a microwave, and a TV set) and some units, not all, have air-conditioning.

b. Housing Allowance
Some contracts only provide their teachers with a housing allowance, especially if the contract is for a short term. If your school does not provide housing, you would have to find your own accommodation and receive a monthly housing allowance from the school. Other teachers opt to receive a housing allowance to be able to choose a living situation that better meets their desires and needs. The amount of housing allowance will vary according to the location of the school and is usually between 300,000 and 500,000 won.

Lease Agreement Types
Jeonsei System
Under the yearly key money system (called "Jeonsei" in Korean), tenants pay the house owner the equivalent of a year's rent in advance and pay no monthly rent. The tenant's money earns interest for the house owner during the contract period. At the end of the contract, tenants receive their entire deposits back, minus any fees for damages. Yearly key money can run from 20~30 million won for a single studio to 60~100 million won for a larger apartment in a more prestigious neighborhood.

Wolsei System
Wolsei is the monthly rent system. Tenants are required to pay rent each month, plus Key Money (deposit) which is returned when the tenant moves out. The amount of monthly rent paid can vary, depending on the amount of Key Money paid. If the amount of Key Money is large, tenants would pay a smaller amount monthly. Monthly rents can vary greatly according to the location of the unit, and can range between 0.3 and 1 million won. Key Money for Wolsei lease agreements can range between 3 and 20 million won. Very few schools will offer Key Money to help their teachers rent apartments.

C. Shared Housing
Although this is an option, teachers should be careful when choosing roommates. Each person's financial responsibilities should be spelled out and agreed upon in advance. Sometimes, private language schools will have 2 or 3 teachers share one large apartment with a common bathroom and kitchen.

d. Dormitories
Yonsei, Ewha, Seoul, Hanyang and Konkuk universities and Hankook University of Foreign Studies all have dormitory accommodations available. The Korean Research Foundation also runs an International House for foreign students. These dormitories can sometimes accommodate foreign instructors, although they usually only accommodate their own faculty.

e. Lodging Houses (Hasuk) and Homestays
These options are popular with university students or those just starting their professional careers. Single rooms can cost between 300,000 and 600,000 won a month and include meals and sometimes laundry service. Another option is to stay with a local family, which can be an excellent opportunity to experience Korean life and culture directly. With both of these options, one of the main disadvantages is a lack of privacy. Most instructors that begin their time in Korea at lodging houses or with homestays eventually move into more private accommodations.

 C. Overtime

Public school teachers are required to teach 22 hours per week and work 40 hours per week, as stated in their contract. Any hours taught or worked in addition to this are considered to be ¡®overtime.¡¯ Hours proposed by the school beyond what was agreed upon in the contract are up to the teacher to accept or reject. Schools may ask teachers to teach extra afterschool or weekend classes, in addition to their normal workload. These programs often focus on either gifted or struggling students, or may concentrate on a subject of interest like acting or writing for the school¡¯s English newspaper. Native speaker English teachers may also hold classes or trainings for the teachers of their school or district. Overtime rates vary by Provincial Offices of Education.

At private language schools, overtime conditions vary from school to school. August and January are the two months when Korean public schools are closed, and are traditionally the busiest months for hagwons in Korea. Most schools schedule extra classes or special programs. Overtime is almost inevitable during these two months. Teachers are also often expected to help temporarily cover the shifts of a teacher who leaves the school unexpectedly, until a replacement can be hired. The usual overtime rate at a private language school is generally around 20,000 - 35,000 won per hour.

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 D. Sick Leave

Public school teach renewed ers are given paid sick leave, when notifying their employer prior to their absence. Most Education Boards require a doctor¡¯s note when a teacher misses more than 3 consecutive days of school. No more than 11 to 15 days of paid sick leave are provided, depending on the Provincial Education Board. The total number of sick leave days taken, both paid and unpaid, may help determine whether or not a teacher¡¯s contract would be renewed.

Private language institutes vary in the number of paid sick leave days they offer their teachers. Most require a doctor¡¯s note for consecutive days of sick leave taken.

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 E. Paid Vacation

Both public schools and private language institutes offer a generous number of paid vacation days to their teachers.

Public schools have school break between July and the end of August and December and February. Teachers may take their paid vacation during these periods, with the advance approval of their schools.

EPIK (Teachers throughout South Korea, except the city of Seoul and Gyeonggi Province): Total of 18 working days off. 8 days may be taken during the summer recess and 10 days during the winter recess.
GEPIK (Teachers in the Gyeonggi Province): Total of 20 working days off. These are to be divided between summer and winter breaks, although it is advised that teachers take the majority of their days during the longer winter break.
SMOE (Teachers in the City of Seoul): Total of 21 working days off. These are to be divided between summer and winter breaks, although it is advised that teachers take the majority of their days during the longer winter break.

Private language schools are usually busy during the public school breaks, but will still get about 10 days off in total during the year.

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 F. National Holidays

Most schools in South Korea close for all Korean national holidays (about 10 - 13 days off a year). The two longest holiday breaks last between 4 and 5 consecutive days, while there are also a number of long weekends and additional work days off throughout the year. Dates of holidays that are based on the Lunar Calendar vary from year to year, while those based on the Solar (Western) Calendar occur on the same date annually. No salary deductions are made for national and school holidays.

The following is a brief explanation of the national holidays observed in Korea:

A. New Year's Day (January 1st)
Both Western and Lunar New Years are celebrated in South Korea.

B, Seollal, or Chinese New Year (follows the Lunar Calendar, varies, from January to late February)
This is the second most important holiday in Korea, behind autumn¡¯s Chuseok. Families generally reunite and travel back to their hometowns during this holiday. Seollal is the most prominent occasion on which Koreans honor their ancestors and older living relatives. Young people usually receive gifts of cash for correctly executing traditional bows in front of elders, and wishing them good health and prosperity for the new year.

Koreans consider themselves to be one year older on Lunar New Year¡¯s Day, not on their actual birthdays. Also, when a baby is born in Korea, he or she is considered to be one year old. Thus, Koreans are usually 1 to 2 years younger than the age that they count themselves as. Knowing this fact can be important when dealing with younger children. If you're told that you're going to be teaching five year olds, double check if this is their 'Korean' or 'Western' age.

C. Samiljeol, Independence Movement Day(March 1st)
This day marks the beginning of the independence movement against the Japanese during their colonial rule. On this day in 1919, leaders of social and religious circles gathered at a park in central Seoul and declared Korea's independence from Japan, which had annexed Korea with tacit U.S. approval in 1910. In recent years, it has come to be a holiday that celebrates (and asserts) Korea's independence from all foreign powers.

D. Buddha's Birthday (follows the Lunar Calendar, varies, in April to May)
Solemn rituals are held at Buddhist temples across the country. Monks and laymen march through city streets with beautiful paper lanterns at night in Jongro.

E. Children's Day (May 5th)
This is an official holiday for the schools. Children receive gifts from parents and teachers and are taken on family outings.

F. Parents' Day (May 8th)
This is not an official holiday; however, most families observe it, with children giving parents carnations and letters of appreciation. Teachers at school usually help the students write letters to their parents.

G. Teacher's Day (May 15th)
Unfortunately, this day is not a holiday for most teachers in Korea. However, you can expect to be showered with gifts from parents and little notes or gifts from the students themselves.

H. Constitution Day (July 17th)
This day celebrates the establishment of the first Korean constitution on July 17, 1948. The Republic of Korea (South Korea) was officially established about a month later.

I. Korean Independence Day (August 15th)
Japan surrendered to the United States on this day in 1945. It is celebrated by Koreans as the official end to Japanese colonial rule and the beginning of the modern era in Korea.

J. Chuseok ( follows the Lunar Calendar, varies, in September to October)
Chuseok, Korea¡¯s harvest festival, is the biggest holiday of the year. Koreans often refer to this holiday as 'Korean Thanksgiving.' Chuseok is celebrated on the 15th day of the 8th month of the Lunar Calendar. At Chuseok (and Lunar New Year), it is common for Koreans to wear traditional clothing, called Hanbok.

The day before and after Chuseok are official holidays as well. Most Koreans will make their way to their hometowns to visit their families for the holiday. If you are planning to travel during this time, it¡¯s best to make travel arrangements in advance.

K. National Foundation Day (October 3rd)
This day commemorates the founding of the Korean nation in 2333 B.C. by the legendary god-king Dangun. A simple ceremony is held at an altar on top of Mt. Manisan, Ganghwado Province. This altar is said to have been erected by Dangun to offer thanks to his father and grandfather in heaven.

L. Christmas (December 25th)
Christmas day is an official holiday for everyone in Korea, although celebrations may differ from those of western cultures. Many young Koreans go out to parties and dinners with friends on December 25th, so if you plan to eat out, it¡¯s a good idea to reserve a table in advance. Most schools will open again on December 26, unless it is the start of their winter break. Christmas Eve and Boxing Day (December 24th and 26th) hold no special significance in Korea.

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 G. Airfare

Currently all schools in Korea offer round trip airfare to and from Korea as part of the standard 1 year contracts. Schools that offer shorter-term contracts most often do not cover airfare for their teachers.

Most often, teachers are required to purchase a one-way ticket to Korea from the nearest international airport in their country to the airport nearest to their school. Public school teachers teaching through the EPIK and SMOE programs will be given a 1.3 million won entrance allowance after arriving in Korea, while GEPIK teachers will be reimbursed for the price of their tickets. Hagwons often reimburse their teachers after arrival, although some will purchase plane tickets for their teachers in advance. It is important to keep the payment receipts and invoices to get this reimbursement.

For those who reside in Korea and are hired while in Korea, starting a new contract without leaving the country will not provide the cash equivalent of a one-way airfare into Korea. However, if the teacher needs a new work visa, and a visa run is required, the school will provide the airfare. At the end of the contract, a one-way ticket back to their home country will be provided.

Teachers that leave their schools without fulfilling their contracts, especially those sleaving within the first six months, will often be required to reimburse the school for their airfare to Korea and will not be provided a return flight to their country.

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 H. Medical Insurance

In principle, foreign instructors are entitled to Korean medical insurance through their employer. You should make sure this is mentioned in the contract before accepting a job offer. It is important to understand the nature and scope of this coverage. While medical care in Korea is generally good and not very expensive, it can still become quite costly. If you do not get insurance through your employer, you can get public health insurance on an individual basis, but only with an Alien Registration Card.

If you purchase private health insurance, it is important to note that most medical practitioners and hospitals do not accept the premise of being directly billed by private health insurance companies, whether from a domestic or overseas firm. Individuals would have to settle with the medical insurance company for reimbursements after the treatments.

For more information, visit the National Health Insurance Corporation website: http://www.nhic.or.kr/english/index.html

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 I. Severance Pay

Public schools provide their teachers with severance pay upon completing a contract of a year or more. This bonus is the equivalent to approximately 1 month's salary (30 days) and does not apply to contracts that are less than a year.

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 J. Income Tax

Income tax deductions are made in accordance with Korean law, and taken from the teacher¡¯s monthly salary. This works out to be approximately 3.3%, depending on the rate of pay. Citizens of the United States of America, the United Kingdom, Ireland, Australia, New Zealand and South Africa may apply for Income Tax Exemption for their first 2 years in Korea. Canadian citizens are required to pay 2% of their salary as income tax, in accordance with Korean law.

To apply for Income Tax Exemption, you should visit a regional taxation office with the following documents:

Required Documents
  - A Certificate of Residency
    (Issued by a regional taxation office in your country)
  - A copy of your Contract
  - An Application Form (Available at regional taxation offices)
For more details, visit the National Tax Service website: http://www.nts.go.kr/eng/index.asp

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 K. National Pension

All workers in Korea pay 9% of their salary to Korea¡¯s National Pension. In the case of native speaker English teachers in Korea, their cover 50% of this cost. When leaving Korea, Canadian and American teachers are entitled to receive both their and their employer's contributions to Korea's National Pension Scheme, due to an agreement between Korea and Canada and the USA. The refund applicable to Canadian and American nationals who worked in public schools.

Required Documents for Lump Sum Refund
  - An Application for Korean Benefits
    ( The form is available at regional offices )
  - An Alien Registration Card
  - Your Bankbook or Account Information for your bank
    account in your country
  - A copy of your Airline Ticket (The date of departure should
    be less than a month from the date of the claim)
  - If you are insured under the other public pension schemes,
    a certificate of employment and copy of the certificate of
    coverage should also be presented

More information on the Social Security Agreement is available on Korea's National Pension Service website: http://www.nps.or.kr/

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 L. List of Deductions

The following shows the monthly salary deductions for teachers working at public schools. The exact figures for each deduction may change.

1.
Income Tax: approximately 3.3% of your salary.
2.
National P ension: approximately 4.5% of your salary (you contribute half of the required 9%, and your employer the other 4.5%).
3.
National H ealth I nsurance: approximately 2.24% of your salary (you contribute half of the required 4.48% , and your employer the other 2.24% )

Salary

Pension
9%

Medical Insu
rance 4.48%

Income Tax

.

Total
(after tax)

.
kwn/
month

Y our C ontribution A pprox.
4.5%

Your Contribution Approx.
2.24 %

US,UK,
SA,AU,
NZ,IR
approx
3.3%

CA Approx. 2%

US, UK, SA, AU, NZ, IR

CA

1,800,000

79,200

42,930

59,400

36,000

1,618,470

1,641,870

1,900,000

83,700

45,310

62,700

38,000

1,708,290

1,732,990

2,000,000

88,650

47,700

66,000

40,000

1,797,650

1,823,650

2,100,000

93,600

50,080

69,300

42,000

1,887,020

1,914,320

2,200,000

98,550

52,470

72,600

44,000

1,976,380

2,004,980

2,300,000

103,500

54,850

75,900

46,000

2,065,750

2,095,650

2,400,000

108,900

57,240

79,200

48,000

2,154,660

2,185,860

2,500,000

114,300

59,620

82,500

50,000

2,243,580

2,276,080

2,600,000

120,150

62,010

85,800

52,000

2,332,040

2,365,840

2,700,000

120,150

64,390

89,100

54,000

2,426,360

2,461,460

2,800,000

126,000

66,780

92,400

56,000

2,514,820

2,551,220

2,900,000

132,300

69,160

95,700

58,000

2,602,840

2,640,540

3,000,000

132,300

71,550

99,000

60,000

2,697,150

2,736,150

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Public School Opportunities
Public school opportunities for native speaker English teachers exist across the Korean Peninsula. Elementary, Middle and High Schools are looking for teachers excited to share their language and culture with students. Korea has a number of metropolitan, mid-sized and rural areas, each with their own pace, personality and cultural offerings.
SMOE (Seoul Metropolitan Office of Education)
Teach English in Seoul
The Largest City and Capital of South Korea
(1.8~2.7mil won; End of August, 2011)
GEPIK (Gyeonggi English Program in Korea)
Teach English in Gyeonggi
Vast Province Dotted with Many Attractions
(2.0~2.3mil won; Start February, 2010)
Public School Positions Throughout Korea
Teach English in Busan
The Largest Coastal City
(1.8~2.65mil won; End of August, 2010)
Teach English in Daegu
A Developed Urban Area
(1.9~2.75mil won; End of August, 2010)
Teach English in Daejeon
The City with the Highest Quality of Life
(1.9~2.75mil won; End of August, 2010)
Teach English in Gangwon
An Area in Great Harmony with Nature
(2.1~2.85mil won; End of August, 2010)
Teach English in Gyeongbuk
A Peaceful and Historical City
(2.1~2.85mil won; End of August, 2010)
Teach English in Chungbuk
Ski Resort & Natural Rest Area
(2.1~2.65mil won; End of August, 2010)
Teach English in Incheon
A Costal City with a Mixture of Cultures
(1.8~2.65mil won; End of August, 2010)
Teach English in Gwangju
Hub City of the Southwestern Region
(1.9~2.75mil won; End of August, 2010)
Teach English in Jeju
Beautiful & Peaceful Island
(2.0~2.75mil won; End of August, 2010)
Teach English in Gyeongnam
Mild Climate; In Harmony with Nature & People
(2.1~2.65mil won, Throughout the year)
Teach English in Jeollabukdo
Real Korean Culture and Food
(2.2~2.85mil won; End of August, 2010)
Teach English in Ulsan
Upscale Center of Modern Industry
(1.9~2.75mil won; End of August, 2010)

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