How to Read Your Japanese Payslip【2026】Gross Pay, Deductions & Take-Home Explained
📋 Contents
For foreigners working in Japan, the monthly payslip (給与明細) is an important document for checking your income, taxes, and social insurance status. However, many people wonder: "Why is so much being deducted?" or "What does this deduction mean?" This article explains how to read your Japanese payslip clearly — from "gross pay (額面)", to "deductions (控除)", to "take-home pay (手取り)".
① The 3 sections of a payslip: "gross pay" and "take-home pay"
Structure of a payslip
A Japanese payslip is broadly divided into 3 sections.
| Section | Content | Example items |
|---|---|---|
| ① Attendance (勤怠) | That month's work attendance and leave status | Days worked, overtime hours, paid leave days taken, etc. |
| ② Earnings (支給) | Breakdown of amounts paid by the company | Base salary, overtime pay, commuting allowance, housing allowance, etc. |
| ③ Deductions (控除) | Breakdown of amounts withheld from salary | Health insurance premium, employee pension (厚生年金) premium, employment insurance premium, income tax, resident tax, etc. |
The difference between "gross pay (額面)" and "take-home pay (手取り)"
Gross pay (額面 / 総支給額) is the total of the "earnings" column — the "monthly salary" stated in employment contracts and job listings almost always refers to this figure. Take-home pay (手取り / 差引支給額), on the other hand, is the amount after subtracting all deductions from gross pay — the amount actually transferred to your bank account.
| Term | Japanese | Explanation |
|---|---|---|
| Gross pay | 額面 / 総支給額 | Total earnings before social insurance and taxes are deducted |
| Deductions | 控除 / 天引き | Total of social insurance premiums + income tax + resident tax |
| Net pay / Take-home pay | 手取り / 差引支給額 | Amount actually received (= gross pay − total deductions) |
② Main earnings items (base salary and various allowances)
The "earnings" section shows the breakdown of compensation paid by your employer. The main items and their meanings are as follows.
| Item | Explanation |
|---|---|
| Base salary (基本給) | The core salary amount defined in the employment contract. Also serves as the basis for calculating overtime pay and bonuses |
| Overtime pay (残業手当) | Premium pay for working beyond the prescribed working hours (statutory overtime, late night, holidays, etc.) |
| Commuting allowance (通勤手当) | Subsidy for commuting costs. Tax-exempt up to a certain monthly limit (see below) |
| Housing allowance (住宅手当) | Subsidy for housing costs (varies by company — some offer it, some do not) |
| Family allowance (家族手当) | Allowance paid when you have dependants (varies by company — availability and conditions differ) |
| Position allowance (役職手当) | Allowance for employees in supervisory or management roles (section chief, department head, etc.) |
| Other allowances | Qualification allowance, perfect attendance bonus, adjustment allowance, etc. — company-specific |
Tax exemption for commuting allowance
When commuting by train, bus, or other public transport, commuting allowances are tax-exempt up to a monthly cap (for car commuters, different distance-based standards apply). Any amount exceeding the tax-exempt limit is treated as taxable income. Please check the National Tax Agency's current information for the exact tax-exempt limit each year.
③ Deduction ① Social insurance premiums (health, pension, employment, nursing care)
Social insurance premiums withheld from your salary fall into four main categories. These are shared between the employer and the employee at certain ratios (employment insurance has a higher employer contribution).
| Insurance type | Purpose | Who it covers | Where to check rates |
|---|---|---|---|
| Health insurance premium (健康保険料) | Subsidises medical expenses for illness and injury | All company employees | Kyoukaikenpo or the health insurance society at your workplace |
| Employee pension premium (厚生年金保険料) | Public pension system covering old-age pension, disability pension, and survivor's pension | Company employees under age 70 | Japan Pension Service |
| Employment insurance premium (雇用保険料) | Funds benefits for unemployment, parental leave, etc. | All company employees (some exceptions) | Ministry of Health, Labour and Welfare (revised each April) |
| Nursing care insurance premium (介護保険料) | Funds benefits when nursing care is needed | Company employees aged 40 and over | Kyoukaikenpo or the health insurance society |
For full details on social insurance, visit Zainichi Life Navi
This article focuses specifically on "how to read social insurance on your payslip and its effect on take-home pay". For details on enrolment procedures, benefits, and how employee health insurance differs from national health insurance, please refer to our sister site "Zainichi Life Navi".
- Social Insurance Guide (Zainichi Life Navi) ↗: Enrolment and how employee pension, health insurance and employment insurance work
- How to Use Health Insurance (Zainichi Life Navi) ↗: Using your insurance card · High-cost medical care benefit
④ Deduction ② Taxes (income tax and resident tax)
Income tax (withholding tax / 源泉徴収)
Income tax is withheld from your salary each month as an approximation (this is called "源泉徴収" — withholding at source). The monthly withheld amount is calculated using the National Tax Agency's "withholding tax table" and varies depending on the number of dependants, among other factors.
Since monthly withholding is only an estimate, it rarely matches the exact income tax liability for the full year. Therefore, a "年末調整 (year-end tax adjustment)" is carried out at year-end to settle the annual tax amount (overpaid amounts are refunded; shortfalls are collected). For details, please see the Year-End Tax Adjustment Guide.
Resident tax (住民税 — prefectural + municipal)
Resident tax (住民税) is calculated based on the previous year's income and is withheld from salary over 12 months, from June of the following year to May of the year after that (特別徴収 — special collection). Resident tax consists of two main components: "均等割 (flat-rate portion)" and "所得割 (income-based portion)".
Comparison: income tax vs. resident tax
| Item | Income tax | Resident tax |
|---|---|---|
| Reference year | Current year (same-year income) | Previous year (prior-year income) |
| When withholding begins | Monthly withholding from the month you start work | Begins with the June payroll of the following year |
| Tax rate type | Progressive (rate rises as income increases) | Flat rate + flat-amount portion |
| Settlement | Full year settled via year-end adjustment (or tax return) | After prior-year income is confirmed, withheld equally over 12 months from June to the following May |
| First year in Japan | Withholding begins from the month you start work | No withholding until June of the following year (prior-year income is zero) |
⑤ How to calculate take-home pay — formula and example
Take-home pay formula
Take-home pay ＝ Gross pay (総支給額) − Total social insurance premiums − Income tax − Resident tax
Social insurance premiums = health insurance + employee pension + employment insurance premiums (plus nursing care insurance for those aged 40 and over).
Rough guide to take-home pay
In general, a company employee's take-home pay is approximately 75–85% of gross pay. However, this is only a rough guide and can vary considerably depending on income level, number of dependants, whether you are aged 40 or over, place of residence (health insurance rates differ by prefecture), and other deductions. This is not a definitive figure — individual circumstances vary significantly.
Simple calculation example (estimate · for reference only)
The figures below are illustrative estimates only and will differ from actual amounts. Please check your own payslip for the actual figures.
| Item | Amount (example · estimate) | Notes |
|---|---|---|
| Base salary | ¥240,000 | Total earnings = ¥250,000 |
| Commuting allowance | ¥8,000 | |
| Other allowances | ¥2,000 | |
| Health insurance premium | Approx. ¥12,000 | Varies by standard monthly remuneration, prefecture, and rate. Estimate only |
| Employee pension premium | Approx. ¥22,000 | Varies by standard monthly remuneration and rate. Estimate only |
| Employment insurance premium | Approx. ¥1,500 | Varies by rate. Estimate only |
| Income tax (withheld) | Approx. ¥4,000–6,000 | Varies by number of dependants and salary amount. Estimate only |
| Resident tax | Approx. ¥10,000–15,000 | From 2nd year onwards · varies by prior-year income. Estimate only |
| Take-home pay (estimate) | Approx. ¥190,000–200,000 (estimate) | |
⑥ Key points for foreigners to check
Employee pension (厚生年金) ＝ You may be able to claim a lump-sum withdrawal when leaving Japan
The employee pension (厚生年金) premiums shown on your payslip accumulate in Japan's old-age pension system. However, foreign nationals without Japanese citizenship who leave Japan may be eligible to claim a "脱退一時金 (lump-sum withdrawal payment)", provided certain conditions are met (the amount is not the full total of premiums paid — it varies depending on the length of enrolment and the benefit amount). For details, see the Lump-Sum Withdrawal Guide.
The "time-lag" of resident tax and settlement when leaving Japan
As explained above, resident tax is calculated on prior-year income and withheld from June to the following May. If you leave Japan or resign, the remaining resident tax for that year may be billed in a lump sum. If you plan to leave Japan, check the Resident Tax Guide in advance.
Dependants (family members living overseas may also qualify)
If you can register overseas family members (such as parents) as dependants, the "扶養控除 (dependant deduction)" may apply when calculating income tax, which can reduce the amount of tax withheld — and potentially increase your take-home pay. Specific conditions and documentation are required. For details, see the Overseas Dependent Deduction Guide.
Withheld income tax is settled via the year-end adjustment
Since monthly income tax withholding is only an estimate, your employer calculates the correct tax amount at year-end and settles the difference (年末調整 — year-end tax adjustment). In many cases, a small refund is issued (depending on your circumstances). For details, see the Year-End Tax Adjustment Guide.
Optimise your take-home pay with iDeCo by reducing taxable income
When you join iDeCo (Individual-type Defined Contribution Pension Plan), your monthly contributions are fully deducted as "所得控除 (income deduction)", reducing your taxable income. This lowers the income tax withheld from your salary as well as your resident tax the following year — effectively optimising your take-home pay. For details, see the iDeCo Guide.
⑦ Relationship with the withholding tax certificate (源泉徴収票)
The 源泉徴収票 (withholding tax certificate / gensen choshu hyo) is an official document summarising your annual (January–December) salary and deductions, issued by your employer around January–February each year. By reviewing your payslip each month, you can track the progression of your income and tax amounts throughout the year — and reconcile them with the figures on your withholding tax certificate at year-end.
| Item | Monthly payslip (給与明細) | Withholding tax certificate (源泉徴収票) |
|---|---|---|
| Period covered | Each individual month | Full year: January–December |
| Content | Monthly earnings and deductions in detail | Annual total salary paid · total income tax withheld · total social insurance premiums, etc. |
| Issued | Each time salary is paid | Around January–February of the following year (within 1 month of leaving for those who resign) |
| Main uses | Checking monthly income and deductions | Tax return filing · changing jobs · mortgage application · various procedures |
The "salary income after deduction (給与所得控除後の金額)" on the withholding tax certificate is the basis for tax calculations. It is also a required document when filing a tax return (e.g. for side income, medical expense deduction claims). For tax return (確定申告) matters in general, please see the Tax Filing & Resident Tax Guide.
⑧ Frequently Asked Questions (FAQ)
⑨ Sources & References
- Kyoukaikenpo「Insurance premium tables by prefecture ↗」
- Japan Pension Service「Employee pension premium tables · standard monthly remuneration ↗」
- National Tax Agency「No.2511 Withholding on salary income ↗」
- National Tax Agency「No.2582 Commuting allowance for train/bus commuters (tax-exempt limit) ↗」
- Ministry of Internal Affairs and Communications「Overview of individual resident tax ↗」
- Ministry of Health, Labour and Welfare「Employment insurance premium rates ↗」