How to read a Japanese payslip
Salary, allowances, overtime, taxable benefits, social insurance, income tax, resident tax, and net pay.
A payslip has three blocks: payments (basic salary, allowances, overtime, bonus), deductions (health insurance, pension, employment insurance, income-tax and resident-tax withholding), and net pay — and the taxable base differs from the social-insurance base.
Effective: 2026-01-01 to 2026-12-31
Professional review pending — treat as draft and confirm with the authorities.
Key points
- Payments: basic salary, allowances, overtime, commuting reimbursement, bonus.
- Deductions: health insurance, pension, employment insurance, income tax, resident tax.
- Commuting reimbursement is often non-taxable up to limits.
- The taxable base and the social-insurance base are calculated differently.
The three blocks
Payments (支給) list basic salary, allowances, overtime, taxable benefits, commuting reimbursement, and any bonus. Deductions (控除) list employee health insurance, employee pension, employment insurance, nursing-care insurance where applicable, national income-tax withholding, and resident-tax withholding. Net pay (差引支給額) is what lands in your account. Commuting reimbursement is often non-taxable up to a limit even though it appears in payments.
Why the bases differ
Income-tax withholding is based on taxable pay and your dependent declaration; employee-pension premiums are based on standardized remuneration that can include basic salary, overtime, and commuting and housing allowances. Because the two bases differ, a change in one deduction does not move the other proportionally. Resident tax appears only once you have a prior-year assessment, which is why it starts in your second June.
Who this is for
- New employees in Japan
- Anyone confused by their deductions
What this is not
- Payroll setup for employers
- If a figure looks wrong, ask HR before assuming a tax error — many lines are social insurance, not tax.
Frequently asked questions
Why did I get a big resident tax bill in my second year?
Resident tax (住民税, about 10%) is charged the year after the income is earned, based on the previous year’s income. So in your first year you often pay little, and in your second year you get a bill for your full first-year income. The same lag means people who stop working or leave Japan can still owe resident tax afterward. Budget for it in advance.