How to read your Japanese payslip (給与明細): understanding every deduction

Every Japanese payslip has two critical totals. The first is 総支給額 (sō shikyū-gaku), your gross pay — the total amount your employer is obligated to pay before any deductions. The second is 手取り (tedori), your net take-home amount — what actually lands in your bank account after all deductions.

The gap between these two numbers is not a mistake. In Japan, it is typically 20 to 30 percent of gross pay for SSW workers, depending on your wage level and whether your employer provides housing. Understanding why this gap exists — and whether each deduction is legitimate — is what this guide covers.

If your employer provides you only with the take-home amount and does not give you a full payslip showing the gross and deductions, that is a legal violation. Under Japanese labor law, employers are required to provide workers with a written breakdown of their pay calculation. Ask for it if it is not provided automatically.

The top section of a payslip shows your gross pay components. The main item is 基本給 (kihon-kyū), your base salary — the fixed amount stated in your employment contract. This number should match exactly what your contract specifies for your working pattern.

Below base salary, you may see several 手当 (teate) lines, which are allowances added on top of base pay. Common ones include 残業手当 (zangyō teate, overtime allowance), 住宅手当 (jūtaku teate, housing allowance paid directly to workers in cash rather than deducted from their housing), 食事手当 (shokuji teate, meal allowance), and 皆勤手当 (kaikkin teate, a perfect attendance bonus paid at some workplaces).

Add up all the positive items in the top section and verify that the total matches the 総支給額 line. If the numbers do not add up, ask your employer or HR contact for a correction before the month closes.

健康保険 (kenkō hoken, health insurance) — This is the employees' health insurance premium. For most company-based insurance schemes, your contribution is approximately 5 percent of your gross monthly wage, though the exact rate depends on your prefecture and insurance scheme. Your employer pays an equal or greater contribution on top of this. This deduction covers your access to Japan's national health care system at reduced cost: typically 30 percent of the cost of medical treatment, with the insurance covering the remaining 70 percent. If you become ill or injured, this coverage applies immediately from your first month of enrollment.

厚生年金 (kōsei nenkin, employees' pension) — This is your contribution to Japan's employees' pension scheme. The rate is approximately 9.15 percent of your gross monthly wage. Your employer matches this with an equal contribution. As an SSW worker, you are legally entitled to a lump-sum withdrawal (脱退一時金, dattai ichiji-kin) of the contributions you have made when you leave Japan permanently — a meaningful financial benefit that many workers do not claim because they do not know it exists. Keep records of all pension payment stubs for this reason.

雇用保険 (koyō hoken, employment insurance) — This deduction is small, approximately 0.6 percent of gross pay. It funds unemployment benefits and worker training programs. While SSW workers may not benefit from unemployment payments in Japan, this deduction is legally required for most formal employment arrangements.

所得税 (shotoku-zei, income tax) — A portion of your income tax is withheld from each paycheck throughout the year, with a final year-end adjustment in December or January. The monthly amount withheld is an estimate based on your annual salary. At year-end, if too much was withheld, you receive a refund; if too little was withheld, you pay the difference. The monthly deduction is typically 3 to 6 percent of gross pay depending on your salary level.

住民税 (jūmin-zei, residence tax) is a local tax levied by the city or municipality where you live. Unlike income tax, which is withheld monthly, residence tax is typically calculated based on your previous year's income and billed starting in June of the following year. This means it does not appear on your payslip during your first year of working in Japan.

From your second year onward, residence tax appears as a monthly deduction of approximately 4 to 6 percent of your prior year's income, divided into twelve monthly payments. This is why workers who have been in Japan for one year often see their take-home pay drop in June — not because their pay was cut, but because residence tax billing begins.

If you leave Japan before completing a full year, you may need to pay any remaining residence tax owed before departing. Your employer or the local ward office can confirm your status.

Many SSW employers provide company dormitory housing, and some provide meals. These benefits are often deducted from your gross pay rather than paid separately. When this happens, they appear in the deduction section of your payslip as 寮費 (ryōhi, dormitory fee) or 食費 (shokuhi, meal cost).

These deductions are legal under Japanese labor law, but they are subject to limits. The deducted amount must be based on the actual cost of providing the accommodation or meals — not inflated above market rate. Additionally, any deductions beyond mandatory statutory ones require your written consent, documented in your employment contract or a separate agreement you have signed.

If housing or meal deductions appear on your payslip that were not clearly explained in your contract or that seem larger than the amounts described, ask your employer for a written breakdown. Comparison point: dormitory housing for SSW workers in most parts of Japan is typically in the range of ¥10,000 to ¥30,000 per month depending on the facility. Deductions significantly above this range for basic accommodation warrant a written explanation.

The most reliable check is straightforward: take your gross pay (総支給額), apply the four standard deduction rates — approximately 5 percent health insurance, 9.15 percent pension, 0.6 percent employment insurance, and roughly 5 percent income tax withholding — and compare the result to your take-home (手取り). These four deductions together typically account for 19 to 21 percent of gross pay. Add any housing or meal deductions and the total should match the gap between your gross and net.

If your payslip shows deductions labeled in ways that do not match these categories, or if unnamed deductions appear without explanation, ask your employer in writing what each deduction covers and what the legal basis is for it. You are entitled to this explanation under Japanese labor law.

Keep every payslip. Store them somewhere safe — digital or physical. If you file a claim with the Labor Standards Inspection Office, claim a pension withdrawal when leaving Japan, or face any wage dispute, having payslip records significantly strengthens your position.

No payslip at all, or only a verbal total with no written breakdown. This is a legal violation. Your employer must provide a written statement of pay and deductions.

Deductions for health insurance and pension but no record of actual enrollment. Ask your employer for your health insurance card (健康保険証) and your pension enrollment number (基礎年金番号). If they cannot or will not provide these, your contributions may not be reaching the insurance system.

Deductions labeled as 'training fees,' 'agency fees,' or 'introduction fees.' These are generally not legally permitted as wage deductions. If such deductions appear, document them and consult the Labor Standards Inspection Office.

A take-home amount that does not match the calculation even after accounting for all labeled deductions. The numbers must add up. If they do not, the discrepancy needs a written explanation.

No income tax deduction for workers earning above the minimum taxable threshold. If you are earning a normal SSW wage and income tax does not appear, ask whether tax is being withheld and filed correctly. An employer who avoids income tax deductions may also be avoiding other legal obligations.