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Apply for a Certificate of coverage online.
When we issue a certificate, keep a copy for your records and give the original to your employee to take with them to Korea.
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When did the agreement start?
The agreement started on 1 October 2008. It also applies to people sent to Korea or Australia for work before this time, but only for super guarantee contributions (or equivalent) made on or after 1 October 2008.
Example
Mark is an Australian resident working in Australia for his Australian employer. Mark’s employer sends him to work in Korea for two years, starting 1 July 2008. As Mark's employer must make super guarantee contributions for him under the super guarantee legislation, Mark and his employer are exempt from making social security contributions under Korean law from 1 October 2008.
This exemption will only apply from 1 October 2008 – any contributions required under Korean law for the period up to 1 October 2008 must still be made. This means that Mark and his employer must make social security contributions under Korean law for the period from 1 July 2008 to 30 September 2008.
What Australian law does the agreement apply to?
The agreement applies to the Australian super guarantee legislation requiring you as the employer to make super guarantee contributions for your employees.
In relation to Korean law, the agreement applies to the relevant Korean social security law. For more information about the agreement and details of Korean social security law, visit the International section of the Department of Families, Housing, Community Services and Indigenous Affairs website at http://www.fahcsia.gov.au/sa/international
When does the agreement apply?
The agreement only applies where double superannuation coverage occurs. This happens when you or your employee are required to make super contributions (or equivalent) under both the Australian and Korean law for the same work undertaken by your employee.
Employees working temporarily in the other country (seconded employees)
Where you send your employee to another country to work for a temporary period (not exceeding five years) and double superannuation coverage occurs, you and your employee are subject only to the super laws of your home country. This means super guarantee contributions (or equivalent) are only required under the law of the country that your employee is most likely to retire in.
Example
Judy is sent by her Australian employer to work in Korea for two years. Judy’s employer must make contributions in Australia under the super guarantee legislation. Judy and her employer must also make social security contributions under relevant Korean law.
As double superannuation coverage occurs, the agreement takes effect and exempts Judy and her employer from making contributions under Korean law. Judy’s employer will continue to make contributions as required under the super guarantee legislation in Australia.
This rule also applies where the employee is sent to work for a related company (provided double superannuation coverage occurs).
Government employees working temporarily in the other country (seconded government employees)
Where a government employee is sent from one country to work in the other country temporarily, and double superannuation coverage occurs, the employee and employer will be subject only to the law of the first country. For example, if a government employee is sent to work in Korea, only Australian law will apply and the employer and employee will not be required to make social security contributions under Korean law.
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The secondment period for government employees to work in Korea is not subject to the five year limit.
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Self-employed people
The agreement does not apply to self-employed Australian residents working in Korea. They are not subject to the super guarantee law in Australia so double superannuation coverage does not occur.
Work on ships and aircraft
If double superannuation coverage arises for a person working on a ship or aircraft in international traffic, the law that will apply is the law of the country in which the person is a resident.
Diplomats
The agreement does not affect the treatment of diplomats and consulate officials under the relevant Vienna Conventions on diplomatic and consular relations.
Certificates of coverage for seconded employees
Where an employee from Australia is sent to work temporarily in Korea, we will issue a Certificate of coverage to you on the basis that you continue to make super guarantee contributions on behalf of your employee.
Last Modified: Thursday, 11 June 2009
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