Deductions from your salary in Japan

If you work for a company in Japan, you won’t basically get the full amount of salary.

In this page, you’ll figure out what kind of deductions you have and how they are calculated.

目次-Contents-

Deductions

Here are items that are deducted from your monthly salary.

Income tax（所得税）
Inhabitant tax（住民税）
Health insurance fee（健康保険料）
Pension premium（厚生年金保険料）
Labor insurance fee（雇用保険料）

How are they calculated?

The amount of each deductions varies from item to item.

Income tax（所得税）
A company deducts an estimated amount of income tax based on a sheet called “源泉徴収税額表” from your salary every month. Estimated deduction is calculated based on how much your salary is and how many dependents you have. The amount of income tax is fixed at the end of the year（年末調整）. If the withheld tax exceeds the fixed amount, you’ll get refund of the tax basically in December.
Inhabitant tax（住民税）
On the contrary to Income tax above, Inhabitant tax deduction is a fixed amount. This tax is calculated based on your income in the previous year and you pay the tax every month from June next year. For example, Inhabitant tax that is calculated based on your income in 2018 will be deducted from your monthly salary from June 2019 to May 2020.
Health insurance fee（健康保険料）
This insurance covers your medical bills. The amount of the Health insurance fee is 9.9% (11.47% if you are 40 or older) of your salary and commute expense that is reimbursed by a company. The half of the fee is deducted from your salary (your company pays half). The percentage varies from prefecture to prefecture.
Pension premium（厚生年金保険料）
You’ll get the pension when you become 65 if you have paid this premium for 10 years. The amount of the Pension premium is 18.3% of your salary and commute expense that is reimbursed by a company. The half of the fee is deducted from your salary (your company pays half).
Labor insurance fee（雇用保険料）
0.3% of your salary is deducted from your salary. You can get financial support when you get fired.