A Japanese payslip (給与明細) has three blocks: 支給 (payments — base + allowances), 控除 (deductions — health insurance ~5%, pension 9.15%, employment insurance 0.6%, income tax, residence tax), and 差引支給額 (net pay). Expect take-home of roughly 75–80% of gross. Two classic surprises: residence tax starts only in your second year (June), and bonuses get deductions too.
Your contract said ¥300,000 a month. Your bank account says ¥237,000 arrived. Somewhere in that dense little PDF of kanji, ¥63,000 evaporated — and nobody at the office thought to explain where, because to them it’s obvious.
Here’s your payslip decoded line by line, plus the two timing surprises that catch nearly every foreigner.
The Three Blocks
Block 1: 支給 (Shikyu) — What You Earn
| Line | Reading | Meaning |
|---|---|---|
| 基本給 | kihonkyu | Base salary — the number bonuses and overtime rates are calculated from |
| 残業手当 | zangyo teate | Overtime pay (125% of base rate; 135%+ late-night) |
| 通勤手当 | tsukin teate | Commuting allowance — usually tax-free, covers your train pass |
| 住宅手当 | jutaku teate | Housing allowance (if your company offers it) |
| 役職手当 | yakushoku teate | Position/role allowance |
Why 基本給 matters more than total: bonuses (typically “X months of 基本給”) and overtime rates key off base salary — a company offering high “allowances” but low base is quietly shrinking your bonus. This matters in salary negotiations.
Block 2: 控除 (Kojo) — What Disappears
| Line | Reading | Rate (approx.) | What it is |
|---|---|---|---|
| 健康保険 | kenko hoken | ~5% (half of ~10%, employer pays rest) | Health insurance — your 30%-copay card |
| 厚生年金 | kosei nenkin | 9.15% (half of 18.3%) | Employees’ pension — refundable if you leave Japan |
| 雇用保険 | koyo hoken | 0.6% | Employment insurance — funds unemployment benefits |
| 介護保険 | kaigo hoken | ~0.9% (age 40+ only) | Long-term care insurance |
| 所得税 | shotokuzei | Progressive, withheld monthly | National income tax |
| 住民税 | juminzei | ~10% of last year’s income ÷ 12 | Residence tax — see the trap below |
Block 3: 差引支給額 (Sashihiki shikyugaku) — Net Pay
Gross minus deductions = what hits your bank. Typical ratio: 75–80% of gross once all deductions are active.
The Two Surprises That Get Every Foreigner
Surprise 1: Residence Tax Starts in Year Two
住民税 is charged on last year’s income — so in your first year in Japan, the line is ¥0. The following June, it appears: roughly 10% of last year’s income, split across 12 months. Your salary didn’t change, but June’s net pay drops ¥15,000–30,000. Every foreigner thinks it’s a payroll error. It isn’t. Full details: residence tax guide.
Corollary — quitting or leaving Japan: unpaid residence tax for the prior year follows you as a lump-sum bill. Budget for it before repatriating.
Surprise 2: Bonuses Are Deducted Too
A “2-month bonus” of ¥600,000 arrives as roughly ¥480,000 — health insurance, pension, employment insurance, and income tax all apply to bonuses. Plan large purchases on net, not gross.
Quick Health Checks (60 Seconds, Every Month)
- Overtime hours × rate — does 残業手当 match your actual hours? Payroll errors here are the most common
- 通勤手当 present? If you moved, did the commute allowance update?
- December: look for 年末調整 (nenmatsu chosei) — year-end adjustment refunding over-withheld income tax; usually appears in the December or January slip
- Keep your 源泉徴収票 (annual withholding slip, issued in December/January) — needed for apartment applications, visa renewals, and tax filing
If the numbers look wrong and payroll shrugs, the Labor Standards Office (労働基準監督署) reviews payslip disputes free.
Benchmarking: Is Your Deal Actually Good?
Once you can read the slip, the next question is whether the numbers are market rate. Base salary, bonus months, and allowance structure vary enormously between companies for identical roles.
Reading your payslip and wondering if you're underpaid? Bilingual recruiters see hundreds of offers a year and will tell you your market rate for free.
Check Your Market Value →Frequently Asked Questions
Why is my take-home pay in Japan so much lower than my salary? Deductions total 20–25% of gross: health insurance (~5%), pension (9.15%), employment insurance (0.6%), income tax, and — from your second year — residence tax (~10% of the prior year’s income spread monthly).
What is the residence tax surprise in Japan? Residence tax is billed on last year’s income, so your first year shows ¥0. It begins the following June, cutting net pay by ¥15,000–30,000/month with no change in salary — commonly mistaken for a payroll error.
Are bonuses taxed in Japan? Yes — bonuses incur health insurance, pension, employment insurance, and income tax withholding. A ¥600,000 gross bonus typically nets around ¥480,000.
What is a gensen choshu-hyo? The annual withholding certificate (源泉徴収票) issued each December/January summarizing your gross pay, deductions, and tax withheld. You’ll need it for tax filing, apartment screening, visa renewal, and any job change.