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Canadian Dollar Based Overview
Comparing Canadian income to a one-year English teaching contract in Korea involves a bit of Apples vs. Oranges. In Korea your taxes will be lower, you will have no rent, and you will effectively be paid 14 months for working 12. Also, you will be paid in Korean Won (KRW).
However, it is a simple and convenient to convert your won to dollars, and transfer money to Canada as desired. Go to www.xe.com for current exchange rates. Historically the average exchange rate has been at 800-900 won per Canadian Dollar.
The following calculations assume an exchange rate of 1150 won /1 Canadian Dollar.
At present, ESL base monthly salaries in Korea are largely in the range of 2,100,000 to 2,800,000 KRW/month ($1750 to $2334) plus housing, though these numbers require some elaboration.
The Bottom Line
At 2,300,000 KRW/month a rough estimation of compensation value in Canadian terms would be:
| ● Comparable Canadian Income: |
$37,942 |
| ● Disposable Income: |
$1500+/month |
| ● What can easily be saved: |
$12,000+ |
Breaking it Down
Here are the details for a 2,300,000 KRW/month ($1,917 CND/month) base contract.
| ● Base Income: |
2.3M, for 12 months |
| ● Housing: |
500,000+ KRW/month ($417) for 12 months (in form of actual housing, or rent subsidy) |
| ● Severance: |
2.3M at end of contract (100% of monthly income) |
| ● Pension: |
2.48M at end of contract (108% of monthly income) |
This results in a total contract compensation value of 38,380,000 KRW, which is about $33,374/year, or $2781/month, not considering taxes.
It's hard to avoid taxes, but at least in Korea your taxes will be rather low, and these tax advantages make your relative income even higher compared to a similar Canadian income level.
Adjusting for Taxes Advantages
In Korea you would be taxed about 8.3% on your base income; about 3.19M KRW ($2,774) for the year.
By comparison, on an income in Canada of $34,000, there would be Federal and Provincial taxes of about $7342.
| ● Canadian Taxes: |
$7342 (22% total taxes) |
| ● Korean Taxes: |
$2774 (8.3% total taxes) |
| ● Canada-Korea tax savings: |
$4568, or about $380/month. |
Adjusting for tax savings:
All compensation ($33,374) + Tax Savings ($4568) = $37,942
Conclusion
With all compensation and tax rates considered, a 1 year teaching contract in Korea at 2.3m KRW/month can reasonably be compared to a job in Canada at $3,162/month, or $37,942/year. As the exchange rate is higher than it has historically been the comparable salary will become higher as the won becomes stronger. At the historical average of 850 won/ CND the comparable salary will be $45,153/year or $3,763/month.
For positions and applicants above the 2.3M KRW/month level, these numbers of course become correspondingly higher.
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HQ OFFICE : TEL +82 2 514 3019 / FAX +82 2 6280 3019
Address : Suite 704 Hannam B/D, 737-37 Hannam-dong, Yongsan-gu, SEOUL, South Korea
㈜ 터치포티칭 사업자등록번호 : 106-86-64489 전화번호 : 02 514 3019 FAX : 02 6280 3019
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