Japanese payslip explained: every deduction and your take-home pay

Payslip deductions in Japan: what they are and how much

• 健康保険 (health insurance): 4.925% of your standard remuneration in Tokyo, slightly different in each prefecture. The company pays the same amount.
• 子ども・子育て支援金 (child support levy): 0.115%, collected together with health insurance since April 2026.
• 介護保険 (nursing care insurance): 0.81%, only for ages 40 to 64.
• 厚生年金 (employees' pension): 9.15%. When you leave Japan, part of these payments can be claimed back (脱退一時金).
• 雇用保険 (employment insurance): 0.5% of gross pay (0.6% in farming, forestry, fishing and construction).
• 所得税 (income tax): deducted every month according to the government table, then recalculated in December (年末調整).
• 住民税 (resident tax): about 10 % of last year's taxable income, deducted from June to May.

Why your take-home pay drops in the second year

Resident tax is based on the previous year's income and is set by the city where you lived on 1 January. If you started working in Japan in 2026, you do not pay it this year, and it starts to come out of your pay in June 2027.

That is why take-home pay looks bigger in the first year. From June of the second year the deductions grow by about one twelfth of the yearly tax. June is a little bigger because the rounding remainder goes into that month.

If you quit between January and April, the rest of the resident tax up to May is taken in one go from your last pay. If you quit between June and December, you can ask for it to be taken in one go, or pay it yourself with a bill from the city.

How overtime is calculated

Hourly rate = (base pay + allowances) ÷ scheduled hours per month. Family, housing and commuting allowances are not counted.

Overtime up to 60 hours a month is paid at 125 % at least, above 60 hours at 150 %. Work between 22:00 and 05:00 earns an extra 25 %, and work on a statutory day off 135 %. Hours on a statutory day off do not count towards those 60 hours.

Since April 2023 the 150 % rule applies to small and medium-sized companies too.

Dorm, meals and other deductions

Under the Labour Standards Act (労働基準法 Article 24), wages must be paid in full. Apart from tax and insurance, the company may deduct something only if there is a written agreement with a labour union or a workers' representative (労使協定).

Ask for a breakdown of the dorm, water, electricity and meal charges. Compare it with what your contract said before you came to Japan.

Check your payslip

• The overtime hours in the 勤怠 section match your own record, and overtime pay is at least 125 % of the hourly rate.
• Health insurance and pension are on the slip. A month's premium is usually taken from the next month's pay, so the first payslip sometimes does not show them yet. If they still do not appear after that, ask your company: without them you are not covered when you are sick and you have no pension payments to claim later.
• Resident tax appears from June of the second year. If it appears in the first year, ask for the notice (住民税決定通知書).
• Dorm and meal deductions match the contract and the written agreement.
• Your hourly base pay is not below the minimum wage of your prefecture (地域別最低賃金), which is reviewed every year.

If something is wrong: call in English

• 外国人労働者向け相談ダイヤル (Ministry of Health, Labour and Welfare): English 0570-001-701, Monday to Friday 10:00–15:00 (not 12:00–13:00). Charged like a normal call.
• 労働条件相談ほっとライン (free): English 0120-531-401, every day; weekdays 17:00–22:00, weekends and public holidays 9:00–21:00.
• Your local labour standards inspection office (労働基準監督署) takes reports of unpaid wages. Bring your payslips and your record of hours worked.