Japan payroll news
Revised ceiling of the Pension payroll taxes on salaries from September 2020
From September 2020, ceiling of the pension tax on salaries will be revised from 620,000 JPY to 650,000JPY.
The total Japan Pension payroll tax is paid 50%/50% between company and employee. As such, company and employee both pay 9.15% each from the monthly salary plus commuting costs refunded to employee.
Please note that this payroll tax raise will appear on October payroll since there is a 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 2020
Japan Pension Service has announced the increase in the Children Upbringing taxes from May 2020. The rate has increased from 0.34% to 0.36%. The new rate will apply from the May payroll and April bonus.
Children Upbringing taxes are paid 100% by the company.
Increase of the Nursing insurance on salaries from March 2020
Japan Health Insurance Association announced that the rate of nursing insurance will increase from March 2020. It will change from 1.73% to 1.79%.
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 payroll. However, on the bonus, the new rate should be applied to March bonus calculation.
Please note that nursing insurance is paid only by people from 40 to 64 years old.
Decrease of the Health insurance tax on salaries from March 2020
Japan Health Insurance Association announced that the Health insurance tax rate will decrease from March 2020. Each prefecture has a difference tax rate.
For example, in Tokyo, the current rate is 9.90%, which will decrease to 9.87 %.
A 50% / 50% Health insurance contribution is made between the company and the employee. As such, both company and employee will pay 4.935% (e.g. rates for Tokyo) of the total of the employee’s monthly salary and commuting cost with a cap.
Please note that this tax rate decrease will appear in April payroll onward since there is one month delay between the tax due and actual deduction from salary.
For bonuses, the new rate will be applied on the March bonus calculation.
For more details, please consult our Social Insurance page
Increase of the Children Upbringing taxes on salaries from May 2019
Japan Pension Service has announced the increase in the Children Upbringing taxes from May 2019. The rate has increased from 0.29% to 0.34%. The new rate will apply from the May payroll and April bonus.
Children Upbringing taxes are paid 100% by the company.
Increase of the Nursing insurance on salaries from March 2019
Japan Health Insurance Association announced that the rate of nursing insurance will increase from March 2019. It will change from 1.57% to 1.73%.
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 payroll. However, on the bonus, the new rate should be applied to March bonus calculation.
Please note that nursing insurance is paid only by people from 40 to 64 years old.
Increase of the Children Upbringing taxes on salaries from May 2018
Japan Pension Service has announced the increase in the Children Upbringing taxes from May 2018. The rate has increased from 0.23% to 0.29%. The new rate will apply from the May payroll and April bonus.
Children Upbringing taxes are paid 100% by the company.
Decrease of the Health insurance taxes on salaries from March 2018
From March 2018, the health insurance tax rate on salaries will decrease. The current Tokyo rate is 9.91% which will decrease to 9.90%.
The total Japan health insurance tax is paid 50%/50% between company and employee. As such, company and employee both pay 4.95% 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.
Decrease of the Nursing insurance on salaries from March 2018
Japan Health Insurance Association announced that the rate of nursing insurance will decrease from March 2018. It will change from 1.65% to 1.57%.
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 2017
From September 2017, the pension tax rate on salaries will increase. The current Tokyo rate is 18.182% which will increase to 18.30%.
The total Japan Pension payroll tax is paid 50%/50% between company and employee. As such, company and employee both pay 9.15% each from the monthly salary plus commuting costs refunded to employee.
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 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.