Specified Skilled Worker program

Tax and Social security


You have to pay tax and social security in Japan.

About 30% of your income

Japanese social security and social infrastructure is very enhanced. It means people should own the cost in the country. Even you came from abroad, you have to own the cost. When you work for Japanese company as a formal staff, you have to pay tax and social insurance according to the low. The amount depends on your salary. You have more salary, you have to pay more amount. It is calculate by percentage of your salary as following.

Please notice that. The salary is included tax and social security. Then, you hand money after payment of the tax and social security. It is less than the salary. The model case of salary and income is following.

Two kinds of income tax in Japan

1. Income tax

This is country tax. You have to pay 5% - 40% according to your income.

2. Local tax

This is province tax. You have to pay 10% of your income.

Japanese Tax rate

Table of tax rate

There are four kinds of social security in Japan.

Health insurance

When you pay for this insurance, you own only 10% of medical treatment at hospital. Another 90% be owned by Japanese government

Employees' pension

This is a pension fund. You pay about 8.56% of your income and company also pay same amount to the government. You need to pay more than 10 years to take money. It means you do not have a chance to have it, because you will go back to your country after you work five years. Then, government will return 50% of your payment (not include company payment) when you go back to your country. The amount may be 600,000 to 800,000 yen according to your payment after you work 5 years.

Employment insurance

You have to pay about 0.5% of income for employment insurance. Company also pay 0.85%. If you work more than one year and lost the job, the government pay around 70% of the basic salary to you for 3 months.

Industrial injury insurance

You do not need to pay this insurance, but company pay 0.3% of your income. When you have serious injury at the work, the government pays for the compensations.

Japan has Value added tax 8% now (10% from October 2019)

When you buy goods or services, you have to pay 8% of the price as Consumption Tax in Japan.

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