How much is your salary? how much is your salary If someone asks, are you talking about ‘before tax’ or ‘after tax’?
I said the ‘after-tax’ amount unconditionally.. It was because I wanted to look like there was no money, and I thought that the ‘before-tax’ amount was meaningless money that I could not touch and did not pass through my bankbook..
The ‘after-tax’ amount is often referred to as the actual amount received, that is, the ‘actual amount received’. Then, when we say ‘salary’, is it correct to refer to ‘actual amount received’, which is ‘after tax’?
According to what I studied today, the annual salary should be ‘before tax’. 2022년 연봉 실수령액표
This is because the ‘before tax’ amount is the money I earned with my ability, and the ‘deductible’ that everyone thinks they take away from the state is the amount I pay with my ability to maintain the various systems set by the state.
The table you see is a table of real monthly wages by salary. If yo
ur annual salary is 36 million won, you should earn 3 million won a month, but in reality, your real income is about 2.65 million won.
That’s right.. In the end, the amount that goes into my bankbook is the ‘actual receipt’, which is the ‘after-tax’ amount, so the actual receipt is inevitably important ㅜㅜ I agree..! 이베이스매뉴얼
<6 things my paycheck gets deleted>
1. National Pension
2.Health insurance
3. Long-term care insurance
4. Employment insurance
5. Income Tax
6. Local income tax
These 6 things will melt your salary.
However! ‘National Pension’, ‘Health Insurance’, ‘Long-term Care Insurance’, ‘Employment Insurance’, ‘Income Income’, ‘Local Income Tax’ are not all paid by the state, right? You are proudly paying with the income you earned from your work! (Repeat emphasis)
So, when you say ‘salary’, you have to say it with ‘before tax’! That’s the money I actually earned! And I am proudly paying the various deductibles! Phew.. I have to win my mind like this.. TT
Anyway, the reason I am writing today is that the government will take care of the tax and take care of it. Instead of saying, I will write to find out what the various deductions I am paying from my salary are, why I am paying, how much I am paying, whether I am paying properly, etc.
If you work hard on your household account and don’t know anything about that huge amount of tax, then why not? Haha To start with, the huge tax you pay consists of ‘four major insurance + income tax’.
We will briefly learn about the four major insurances, how much each insurance covers the premiums!, and how much income tax is paid!
And through that, let’s calculate the actual amount of actual income in 2022 directly through the 4 major insurance calculators!
1. National Pension
In accordance with Article 3 of the Basic Law on Social Security of the Republic of Korea, workers are obliged to purchase the following four social insurances to safely protect against social risks.
You’ve probably heard the term ‘four major insurances’, but aren’t there many people who don’t know what the four major insurances are? Actually, I did too. But through this opportunity, I learned how the 4 major insurances and my salary are being deducted.
Let’s start with the National Pension Service.
The National Pension System is a system that guarantees a stable life by paying a certain amount of pension for the rest of your life under the responsibility of the state.
If you are a civil servant, will your pension be deducted from your pension? For general workers, it is one of the four major insurances and is one of the amounts deducted from the salary before tax. I will explain on the basis of general workers.
National pension insurance premium = standard monthly income X premium rate (4.5%)
The standard monthly income is the amount calculated by subtracting less than 1,000 won from the monthly income reported by the insured for the calculation of insurance premiums and benefits for the National Pension Service.
The total insurance premium rate of the National Pension System is 9%, which is shared by workers and employers by 4.5%. So, it is expressed as 4.5% of the monthly salary.
In addition, the maximum monthly base income is 5.24 million won, and monthly income exceeding 5.24 million won is deducted based on 5.24 million won. That is, 235,800 won, which is 4.5% of 5.24 million won, will be the maximum monthly deduction.
If your standard monthly income exceeds 5.24 million won, you will be paying 235,800 won per month as a national pension.
2. Health insurance (health insurance premium + long-term care insurance for the elderly)
Next is health insurance. Health insurance is largely divided into health insurance premiums and long-term care insurance premiums for the elderly.
The health insurance system is a system in which insurance is applied when you go to a hospital after paying insurance premiums to prevent expensive medical expenses from becoming an excessive burden on the household.
The long-term care insurance for the elderly is a social insurance system that provides long-term care benefits to support the elderly who are unable to perform daily life alone.
How are health insurance premiums and long-term care insurance premiums calculated?
Health insurance premium = monthly remuneration X premium rate (3.495%)
Long-term care insurance premium = health insurance premium X premium rate (12.27%)
Monthly remuneration is the amount obtained by dividing the total amount of remuneration received in the current year by the number of working months.
Multiply the monthly remuneration by the premium rate of 3.495% to get the health insurance premium, and multiply the health insurance premium by the premium rate by 12.27% to get the long-term care insurance premium.
In terms of insurance premiums, the original premium rate is 6.99%, and workers and employers share 3.495% each. Also, there is an upper limit for insurance premiums like the National Pension… The monthly health insurance premium is 7,307,100 won.
The monthly remuneration is not 7.3 million won, but the upper limit of the monthly health insurance premium is 7.3 million won.
That is, if you earn about 100 million won a month, you will pay 700 or more as health insurance premiums, and the long-term care insurance premiums will also be about 1 million won. Even if you earn more than that, your health insurance premium is up to 7.3 million won per month. It’s amazing..!
3. Employment insurance, industrial accident insurance
The following are employment insurance and living debt insurance. First of all, let’s talk about industrial accident insurance quickly.
Workers’ Compensation Insurance is a compulsory insurance that the state is responsible for to ensure the lives of industrial accident workers and their families.
In other words, workers’ compensation insurance is insurance that workers do not have to pay. The insurance you pay will not affect your actual annual salary.
But unemployment insurance does have an impact.
Employment insurance is a social insurance system that pays unemployment benefits to promote stability in life and job search activities for workers when they lose their job, prevent unemployment, promote employment, and develop and improve workers’ vocational skills.
In other words, it is a system to pay unemployment benefits during the period when you cannot earn money when you lose your job or change jobs while working. I have quite a few friends around me who are receiving unemployment benefits.
However, as it is for unemployment benefits, public officials are not eligible and therefore do not pay employment insurance premiums. Therefore, we will explain it on the basis of general workers.
In order to finance this unemployment benefit, a certain portion is also deducted from the salary. How much will be deducted?
Employment insurance premium = monthly remuneration X premium rate (0.8%)
0.9% from 1 July 2022
For employment insurance premiums, 0.8% of monthly remuneration is deducted. This is also a 0.8% share with the employer. The employment insurance premium is unique. Depending on the size of the business, the employer must pay an additional premium in addition to unemployment benefits.
According to the table, the basic unemployment benefit is paid by workers and employers at 0.8% each, and employers must pay additional employment insurance premiums for ’employment stabilization project and vocational competency development project’.
From 0.25% for businesses with fewer than 150 employees to 0.85% for businesses with 1,000 or more employees. What if the company is under 150? I will pay the unemployment insurance premium of 1.05%, which is the sum of the unemployment benefit of 0.8% and the premium of 0.25%.
Another thing to remember is that the unemployment insurance rate will increase from 1.6% to 1.8% from July 1, 2022. In other words, from July 1st, unemployment benefits, which are currently paid by workers and employers by 0.8% each, will be paid by 0.9%.
4. Income tax, local income tax
In fact, this part of income tax seems to be the most complicated to calculate, but you can think of it as uncomplicated. This is because it can be done according to the ‘Simplified Earned Income Tax Amount’ set by the National Tax Service every year.
only! One thing to consider is that the tax credit depends on how many family members are eligible for the deduction, and in particular, the tax credit becomes larger depending on the number of children between the ages of 7 and 20 in the family eligible for the deduction.
Like this! However, there is no need to think complicatedly, and the following simplified income tax table shows the standard amount of wage and salary income tax for every situation in great detail.
Attachment Earned Income_Simple Tax Amount Table (Quick Table) (1).xls file download
You can refer to the Excel, and I will guide you on how to read it easily.
On the left is the monthly income range. Based on the red box, the monthly salary is between 3 million won and 30.2 million won, right?!
The box on the right is income tax according to the number of deductible families. In the range of 3 million won to 3.02 million won per month in the red box, there is only one family subject to deduction?! Income tax is 84,850 won / 2 people?! Income tax would be 67,350 won.
What if there are children between 7 and 20 years old? If you do, you can check the income tax by adding the number of families eligible for deduction.
And to consider, workers can choose between 80%, 100%, or 120% of their withholding tax. What I mean is, income tax is taken away when you receive your salary, and you can make it more or less.
In the red box above, in the range of 3 million won to 3.02 million won, the income tax was 84,850 won when there was only one person subject to deduction? This is the amount based on 100% of withholding tax, 80% of 67,880 won or 120% of