When working in Japan, it is important to understand your payslip so that you can check whether your salary has been calculated correctly. Your take-home pay may be lower than expected because of taxes, social insurance contributions, accommodation fees or other deductions.

Songda Tohoku Joint Stock Company explains the main items on a Japanese payslip, provides an illustrative example and outlines what to do if the amount you receive differs from your expectations.

1. Common items on a Japanese payslip

The following terms commonly appear on payslips in Japan:

• 基本給 (Basic salary): Your basic salary before overtime pay, allowances and deductions.

• 残業手当 (Overtime pay): Additional pay for overtime work, calculated according to the applicable rules and your employment conditions.

• 各種手当 (Allowances): Additional payments, such as commuting, position or other allowances, depending on your employer's policy.

• 総支給額 (Gross pay): Your total earnings before deductions.

• 差引支給額 (Net pay / take-home pay): The amount remaining after deductions, which is normally transferred to your bank account.

Do not confuse your gross pay with your take-home pay. The amount stated in your employment contract may not be the same as the amount deposited into your account each month.

2. What deductions may appear on your payslip?

Depending on your circumstances, your payslip may include the following deductions:

• 所得税 (Income tax): Tax deducted from your salary in accordance with the applicable rules.

• 住民税 (Resident tax): Local tax, generally based on the previous year's income and subject to the applicable rules.

• 健康保険 (Health insurance): Your contribution towards health insurance, where applicable.

• 厚生年金 (Employees' pension insurance): Your contribution to the employees' pension scheme, where applicable.

• 雇用保険 (Employment insurance): Your contribution to employment insurance, where applicable.

• 寮費・家賃 (Dormitory or accommodation fees): Accommodation charges, if these are payable by you and deducted through payroll.

• その他の控除 (Other deductions): Other amounts, where there is a proper basis for the deduction.

The exact deductions depend on your employment arrangements, income, insurance status, tax circumstances and other relevant factors. If you do not understand a deduction, ask your employer or payroll department to explain how it was calculated and why it was applied.

3. Illustrative example of a Japanese payslip

The table below is a hypothetical example to help workers understand how gross pay, deductions and take-home pay relate to one another. These figures are for illustration only and do not represent standard salary or deduction rates for all workers in Japan.

In this example:

¥241,250 − ¥65,400 = ¥175,850

The worker's take-home pay is ¥175,850 after the listed deductions.

How is the overtime pay calculated?

For illustration, assume that the hourly wage is ¥1,250 and all 20 overtime hours qualify for the statutory overtime premium of at least 25%.

Calculation:

¥1,250 × 1.25 × 20 hours = ¥31,250

The actual calculation depends on the applicable overtime rules, the worker's wage structure and the type and timing of the work performed. Different premium rates may apply to statutory holidays, night work or overtime exceeding the relevant monthly threshold.

4. What should you do if your take-home pay is lower than expected?

If the amount deposited into your bank account is lower than you anticipated, do not immediately assume that your employer has made a mistake. Check the following points first:

Step 1: Check your gross pay.

Compare your basic salary, overtime hours, allowances and any unpaid leave or absences with your employment contract, attendance records and agreed working conditions.

Step 2: Check every deduction.

Identify the amounts deducted for tax, social insurance, accommodation and other items. If a deduction is unfamiliar or seems incorrect, request an explanation.

Step 3: Compare your payslip with your bank statement.

Check whether the amount deposited matches the net pay shown on your payslip. If the figures differ, contact your employer or payroll department.

Step 4: Keep relevant documents.

Keep copies of your employment contract, payslips, attendance and overtime records, and bank statements. These documents may help clarify a salary discrepancy.

Step 5: Seek advice if the issue remains unresolved.

If your employer does not provide a satisfactory explanation, or you suspect that wages have been withheld or calculated unlawfully, seek advice from an appropriate labour consultation service in Japan. Foreign workers can also consult official information provided by Japan's Ministry of Health, Labour and Welfare.

5. Checklist for workers in Japan

When you receive your salary, make sure you:

• Check your basic salary against your employment contract.

• Confirm that your recorded working hours and overtime are correct.

• Check whether all agreed allowances have been included.

• Review taxes, social insurance contributions and other deductions.

• Confirm that the amount deposited matches the net pay on your payslip.

• Ask for clarification if you notice an unfamiliar deduction or an unexplained difference.

Understanding your payslip helps you manage your finances, identify possible errors and protect your employment rights while working in Japan.

Official reference sources

• Ministry of Health, Labour and Welfare (Japan) – Information for foreign workers: https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/koyou_roudou/roudoukijun/foreign/index.html

• Ministry of Health, Labour and Welfare (Japan) – Questions and answers on wages and overtime: https://www.check-roudou.mhlw.go.jp/qa/roudousya/chingin/q3.html

• Japan Pension Service – Employees' pension insurance premiums: https://www.nenkin.go.jp/service/kounen/hokenryo/nofu/20121026.html

• National Tax Agency (Japan) – Income tax withholding information: https://www.nta.go.jp/publication/pamph/gensen/gaikokugo/06.htm

CONTACT INFORMATION

Songda Tohoku Joint Stock Company

Address: L02-L01, Area A, Duong Noi Urban Area, Duong Noi Ward, Hanoi, Vietnam

Hotline: 0989 044 852

Email: tohokusongda2014@gmail.com

Website: https://tohoku.vn