Japan Payroll & Benefits

Increase of the Children Upbringing taxes on salaries from May 2017

Japan Pension Service has announced the increase in the Children Upbringing taxes from May 2017. The rate has increased from 0.20% to 0.23%. The new rate will apply from the May payroll and April bonus.

Children Upbringing taxes are paid 100% by the company.

Decrease of the unemployment insurance taxes on salaries from April 2017

From April 2017, the unemployment insurance tax rate on salaries will decrease. The current rate is 1.1% in total which will decrease to 0.9%.

The total unemployment  insurance tax is paid between company and employee. Current rate for company share is 0.7% and for employee 0.4%, which will decreased to 0.6% and 0.3% respectively.

Decrease of the Health insurance taxes on salaries from March 2017

From March 2017, the health insurance tax rate on salaries will decrease. The current Tokyo rate is 9.96% which will decrease to 9.91%.

The total Japan health insurance tax is paid 50%/50%  between company and employee. As such, company and employee both pay 4.955% each from the  monthly salary plus commuting costs refunded to employee.

Please note that this payroll tax decrease will appear on April payroll since there is a one month lag between the payroll tax due and the  date when it is actually deducted from salary.

For bonuses, the new rate will be applied on the March bonus calculation.

Increase of the Nursing insurance on salaries from March 2017

Japan Health Insurance Association announced that the rate of nursing insurance will increase from March 2017. It will change from 1.58% to 1.65%.

Nursing insurance is calculated by: Standard Monthly Salary (and Bonus) X Insurance rate

The first payroll calculation with this new rate will appear in April. However, on the bonus, the new rate should be applied to on the March bonus calculation.

Please note that nursing insurance is paid only by people from 40 to 64 years old.

Rise of the Pension payroll taxes on salaries from September 2016

From September 2016, the pension tax rate on salaries will increase. The current Tokyo rate is 17.828% which will increase to 18.182%.

The total Japan Pension payroll tax is paid 50%/50%  between company and employee. As such, company and employee both pay 9.091% each from the  monthly salary plus commuting costs refunded to employee.

The pension payroll taxes will gradually increase by 0.354% every year until September 2017 to the target rate 18.300% set by the government.

Please note that this payroll tax raise will appear on October payroll since there is a one month lag between the payroll tax due and the  date when it is actually deducted from salary.

Increase of the Children Upbringing taxes on salaries from May 2016

Japan Pension Service has announced the increase in the Children Upbringing taxes from May 2016. The rate has increased from 0.15% to 0.2%. The new rate will apply from the May payroll and April bonus.

Children Upbringing taxes are paid 100% by the company.

Decrease of the unemployment insurance taxes on salaries from April 2016

From April 2016, the unemployment insurance tax rate on salaries will decrease. The current rate is 1.35% in total which will decrease to 1.1%.

The total unemployment  insurance tax is paid between company and employee. Current rate for company share is 0.85% and for employee 0.5%, which will decreased to 0.7% and 0.4% respectively.

Decrease of the Health insurance taxes on salaries from March 2016

From March 2016, the health insurance tax rate on salaries will decrease. The current Tokyo rate is 9.97% which will decrease to 9.96%.

The total Japan health insurance tax is paid 50%/50%  between company and employee. As such, company and employee both pay 4.98% each from the  monthly salary plus commuting costs refunded to employee.

Please note that this payroll tax decrease will appear on April payroll since there is a one month lag between the payroll tax due and the  date when it is actually deducted from salary.

For bonuses, the new rate will be applied on the March bonus calculation.

Rise of the Pension payroll taxes on salaries from September 2015

From September 2015, the pension tax rate on salaries will increase. The current Tokyo rate is 17.474% which will increase to 17.828%.

The total Japan Pension payroll tax is paid 50%/50%  between company and employee. As such, company and employee both pay 8.914% each from the  monthly salary plus commuting costs refunded to employee.

The pension payroll taxes will gradually increase by 0.354% every year until September 2017 to the target rate 18.300% set by the government.

Please note that this payroll tax raise will appear on October payroll since there is a one month lag between the payroll tax due and the  date when it is actually deducted from salary.

Decrease of the Nursing insurance on salaries from April 2015

Japan Health Insurance Association announced that the rate of nursing insurance will decrease from April 2015. It will change from 1.72% to 1.58%.

Nursing insurance is calculated by: Standard Monthly Salary (and Bonus) X Insurance rate

The first payroll calculation with this new rate will be May. However, on the bonus, the new rate should be applied to it whose payment day should be from April 1st 2015.

Please note that nursing insurance is paid only by people from 40 to 64 years old.

Rise of the Pension payroll taxes on salaries from September 2014

From September 2015, the pension tax rate on salaries will increase. The current Tokyo rate is 17.120% which will increase to 17.474%.

The total Japan Pension payroll tax is paid 50%/50%  between company and employee. As such, company and employee both pay 8.737% each from the  monthly salary plus commuting costs refunded to employee.

The pension payroll taxes will gradually increase by 0.354% every year until September 2017 to the target rate 18.300% set by the government.

Please note that this payroll tax raise will appear on October payroll since there is a one month lag between the payroll tax due and the  date when it is actually deducted from salary.

Rise of the Nursing insurance on salaries from March 2014

Japan Health Insurance Association announced that the rate of nursing insurance will increase from March 2014. It will change from 1.55% to 1.72%.

Nursing insurance is calculated by: Standard Monthly Salary (and Bonus) X Insurance rate

The first payroll calculation with this new rate will be April. However, on the bonus, the new rate should be applied to it whose payment day should be from March 1st 2014.

Please note that nursing insurance is paid only by people from 40 to 64 years old.

Rise of the Pension payroll taxes on salaries from September 2013

From September 2012, the pension tax rate on salaries will increase. The current Tokyo rate is 16.766% which will increase to 17.120%.

The total Japan Pension payroll tax is paid 50%/50%  between company and employee. As such, company and employee both pay 8.56% each from the  monthly salary plus commuting costs refunded to employee.

The pension payroll taxes will gradually increase by 0.354% every year until September 2017 to the target rate 18.300% set by the government.

Please note that this payroll tax raise will appear on October payroll since there is a one month lag between the payroll tax due and the  date when it is actually deducted from salary.

Rise of the Pension payroll taxes on salaries from September 2012

From September 2012, the pension tax rate on salaries will increase. The current Tokyo rate is 16.412% which will increase to 16.766%.

The total Japan Pension payroll tax is paid 50%/50%  between company and employee. As such, company and employee both pay 8.383% each from the  monthly salary plus commuting costs refunded to employee.

The pension payroll taxes will gradually increase by 0.354% every year until September 2017 to the target rate 18.300% set by the government.

Please note that this payroll tax raise will appear on October payroll since there is a one month lag between the payroll tax due and the  date when it is actually deducted from salary.