Understanding your Japanese payslip
Your first Japanese payslip (給与明細, kyuyo meisai) can be a shock: the number at the bottom is noticeably smaller than the salary you agreed to. Nothing’s wrong — a set of social-insurance premiums and taxes come out before you’re paid. Here’s what each line funds, from the Japan Pension Service, MHLW and the tax authorities.
Three blocks: attendance, payments, deductions
A payslip is typically laid out in three sections: attendance (days worked, overtime hours), payments (base salary + allowances + overtime = gross, 支給), and deductions (控除). Japanese law requires wages be paid “in full,” with explicit legal exceptions for statutory deductions like taxes and insurance — which is exactly what the deductions block itemises.
The deductions, one by one
| Deduction | What it funds |
|---|---|
| Health insurance (kenko hoken) | Medical benefits for you and dependents; you pay ~30% at the counter |
| Pension (kosei nenkin) | Old-age, disability and survivor pensions |
| Employment insurance (koyo hoken) | Unemployment & re-employment benefits (a small line) |
| Nursing-care insurance (kaigo hoken) | Long-term care — only from age 40 |
| Income tax (gensen choshu) | National income tax, withheld as an estimate |
| Residence tax (juminzei) | Local tax — based on last year’s income |
Social insurance: shared 50/50 with your employer
Here’s the good news hiding in those deductions: for pension and health insurance, the premium is split evenly between you and your employer. The Japan Pension Service states contributions “are evenly shared by you (worker) and your employer.” Employment insurance is likewise jointly funded by worker and employer. So the amount leaving your pay is only half the true premium.
Enrolment isn’t optional. A workplace is “covered” if it’s a company employing 5+ workers, or any incorporated entity of any size — and then all workers, regardless of nationality, are covered by law. If you later leave Japan for good, pension paid in for 6+ months may be reclaimable — see our pension guide.
Income tax is only an estimate
The income-tax line is withheld at source as an estimate each month. Your employer trues it up at the year-end adjustment, after which most employees never file a tax return at all.
Why residence tax is strange in year one
Residence tax trips up almost every newcomer. It’s a local tax calculated on the income you earned the previous January–December (MIC), and for employees it’s usually collected by “special collection” — your employer deducts it monthly and pays the city on your behalf. The consequence: if you had no Japan income last year, you’ll see little or no residence tax at first, and it typically kicks in from around June of your second year. Budget for that jump — it’s not a mistake, and it’s not going away. See our residence-tax guide for the full picture.
Frequently asked questions
Why was no residence tax deducted from my first paychecks?
Residence tax (juminzei) for a given year is based on income earned January–December of the PREVIOUS year. If you had little or no Japan income last year (e.g. you just arrived), your bill starts near zero and typically only ramps up from around June of your second year (MIC).
What’s the difference between 支給 and 差引支給額?
支給 (shikyu) is gross pay — base salary plus allowances and overtime, before anything is taken out. 差引支給額 (sashihiki shikyu-gaku) is your net take-home after all social-insurance premiums and taxes are subtracted. Payslips usually group items into attendance, payments, and deductions.
As a foreign employee, must I join pension and health insurance?
Yes. The Japan Pension Service states coverage is compulsory by law for all workers at a covered workplace “regardless of nationality” — neither employer nor employee can opt out.
Do I get my pension contributions back if I leave Japan?
If you paid in for 6+ months, are not a Japanese citizen, will no longer live in Japan, and never received pension benefits, you can apply for a lump-sum withdrawal payment within 2 years of leaving. See our pension guide.
Why does the nursing-care (kaigo) deduction only start later?
Nursing-care insurance premiums are required from age 40. For employees aged 40–64 it’s billed together with health insurance, so the line appears on your payslip only once you turn 40 (MHLW).
This is general information from official sources (2026-07-13). Premium rates for health, pension, employment and nursing-care insurance change periodically (often each April/September), and residence tax is administered by your municipality. Check current rates with your employer, the Japan Pension Service, or your health-insurance association.
Sources
- Japan Pension Service — Employees’ Pension: enrolment (compulsory, all nationalities) (retrieved 2026-07-13)
- Japan Pension Service — Employees’ Pension: contributions (50/50 split) (retrieved 2026-07-13)
- MHLW (Tokyo) — Insurance systems for workers (health, pension, employment) (retrieved 2026-07-13)
- NTA (English) — No.12018 Most wage earners need not file (year-end adjustment) (retrieved 2026-07-13)
- MIC (Soumu) — Individual Inhabitant (residence) Tax for Foreign Residents (retrieved 2026-07-13)