What Are My Japan Salary Deductions? (October 2022)
Let’s go through the paycheck together!
Please note this article does not apply to everyone, but covers the vast majority of salaried workers in Japan. If you are not sure about your particular deductions or require further explanation, please contact your HR personnel or payroll vendor first. Various factors can affect your deductions, such as
Your age
Your registered address
Number of dependents
Your residency status in Japan
Your length of residency in Japan
Your source of income
健康保険 Health Insurance
1/3 of residents in Japan have health insurance coverage from 協会けんぽ, Kyokai Kenpo. If your health insurance provider is kenpo, your health insurance card says 全国健康保険協会 〇〇支部 on the second line from the bottom. Each prefecture has its own insurance rate, and 〇〇 is the prefecture which your employer’s registered with. If your coverage is from Kenpo’s Tokyo branch, below is the monthly insurance bracket chart.
If your average wage was 395,000 – 425,000 JPY between 2022 April 1 and 2022 June 30, your social insurance bracket is 410,000 JPY. If you joined the company on or after 2022 June 1, your first month’s guaranteed wage is used for the bracket calculation. Total HI rate is 9.81%, and the employee and the company split 50/50.
Employee contribution = 410,000 × 4.91% = 20,110 (round DOWN)
Company contribution = 410,000 × 4.91% = 20,111 (round UP)
Total HI contribution = 20,110 + 20,111 = 40,221
20,110 yen will be withheld from your salary paid in October.
介護保険 Nursing Care Insurance
Nursing care insurance covers the expenses of getting old. For example,
House visit by nurse, caregiver, and physical therapist
Nursing care facility stay
Equipment purchase and rental such as wheelchair and walker
The NC contribution is required for 40 – 59 year old workers. Some people call it long-term care insurance or senior care insurance. Total nursing care rate is 1.64% (= 11.45% – 9.81%), and the employee and the company split 50/50.
If your insurance bracket is 410,000 JPY,
Employee contribution = 410,000 × 0.82% = 3,362
Company contribution = 410,000 × 0.82% = 3,362
Total NC contribution = 3,362 + 3,362 = 6,724
6,724 JPY can be also calculated by 46,945 – 40,221
I have no idea why kyokai kenpo made the chart like that ¯\_(ツ)_/¯
厚生年金 Workers Pension
The company must enroll every full time employee in kosei nenkin, and the employee can not refuse the enrollment. Non-Japan resident can still claim Japan pension if the pension contributions period was more than 10 years. Total WP rate is 18.3%, and the employee and the company split 50/50.
If your insurance bracket is 410,000 JPY,
Employee contribution = 410,000 × 9.15% = 37,515
Company contribution = 410,000 × 9.15% = 37,515
Total WP contribution = 37,515 + 37,515 = 75,030
雇用保険 Unemployment Insurance
Sometimes it’s called the employment insurance. If your contract hours are 20 hours or more per week, you will be enrolled in the unemployment insurance. Company directors, intra-company transferee, and full-time students are not eligible for the enrollment, therefore they can not claim any benefit.
2022 April 1 – 2022 September 30: Employee contribution rate: 0.3%
2022 October 1 – 2023 March 31: Employee contribution rate: 0.5%
Unemployment insurance is provided from the Labor Office, so the calculation method is different from health insurance, nursing care, and workers pension.
Every monthly salary items are taxed except for the expense reimbursement.
The employee UI contribution = 412,000 × 0.5% = 2,060
所得税 Income Tax
Net Taxable Income of 336,953 JPY falls on [335,000 – 337,999 yen] bracket.
11,360 JPY is due if you have zero dependent.
Sources: 給与所得の源泉徴収税額表（令和 4 年分）
https://www.nta.go.jp/publication/pamph/gensen/zeigakuhyo2021/data/01-07.pdf
住民税 Resident Tax
Resident tax is around 10% of your previous year’s income. If this is your first year living in Japan, you will not be required to pay the resident tax till June of the following year.
You will receive the resident tax notice from your HR or payroll vendor around June pay day.