How to Read Your Japanese Payslip (給与明細)

Receiving your first salary in Japan can bring a mixture of excitement and confusion. When you look at your Payslip (Kyuyo Meisai - 給与明細), you will find that the difference between your gross pay and actual take-home pay is significant. Here is how to make sense of the deductions.

The Three Main Sections of a Payslip

Every Japanese payslip is divided into three core categories: Attendance, Payments, and Deductions.

Attendance (勤怠 - Kintai): Records your working days, hours, paid leave days used, and overtime hours.
Payments (支給 - Shikyu): Lists all components of your gross salary, including base salary (*Kihonkyu*), commute allowance (*Tsukin Teate*), housing allowance, and overtime pay.
Deductions (控除 - Kojo): The taxes and social insurances withheld directly from your pay.

Understanding Deductions (控除 - Kojo)

The deduction section is usually where expats have the most questions. These deductions represent social security obligations and taxes:

Health Insurance (健康保険 - Kenko Hoken): Deducted to cover medical costs. It allows you to pay only 30% of medical bills at clinics and hospitals.
Employees' Pension (厚生年金 - Kosei Nenkin): Mandatory savings for retirement (which can be reclaimed when leaving Japan via the Lump-Sum refund).
Employment Insurance (雇用保険 - Koyo Hoken): Small premium that funds unemployment benefits, childcare leave, and vocational training subsidies.
Income Tax (所得税 - Shotokuzei): Calculated dynamically based on your current month's taxable income and the number of registered dependents.
Residence Tax (住民税 - Jumizei): Local municipal tax. Note: For your first year in Japan, this deduction is zero because it is calculated based on your previous year's income in Japan.

Important: Because Residence Tax is billed in arrears, you will start seeing deductions from June of your second year in Japan. Make sure to save some of your first-year income to cover this sudden decrease in take-home pay.

Take-Home Pay (差引支給額 - Sashihiki Shikyu-gaku)

This is the final figure transferred to your bank account — calculated as Total Payments minus Total Deductions. Typically, your take-home pay is around 75% to 85% of your gross salary.