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How Salary, Bonuses, and Payslips Work in Japan

How Salary, Bonuses, and Payslips Work in Japan Japanese payslips can be difficult to decipher when you first start working in Japan. Base salary, allowances, social insurance contributions, income tax, bonuses, and resident tax all appear as separate items, often with unfamiliar terminology. This guide explains how salaries and payslips work in Japan in 2025, why certain deductions are made, and how your take-home pay is calculated. 1) How Salary Is Structured in Japan Most full-time employees receive a fixed monthly salary. Companies usually describe compensation as “monthly salary + bonus,” not annual salary, which often surprises foreign residents. Understanding what makes up your monthly income is essential for budgeting and negotiating offers. Typical components: Base salary (基本給) — the main part of your compensation. Allowances (手当) — such as transportation, housing, overtime, or family support. Bonuses (賞与) — usually paid twice per year. Why Japanese c...

How to Dispose of Garbage & Recycling in Japan

How to Dispose of Garbage & Recycling in Japan Japan’s waste-separation rules are famously strict—and for good reason. They reflect a national commitment to resource efficiency, limited landfill space, and local community cleanliness. For foreign residents this system can seem baffling at first. Once you understand the fundamentals and the local quirks, disposing of garbage becomes simple and stress-free. This guide walks you through the categories, schedules, fees, and common pitfalls in 2025. 1) Waste Categories and Why They Matter Municipalities divide waste into multiple categories to maximise recycling and minimise landfill. Although each city has its own list, most follow the pattern below: Burnable Garbage (燃やせるごみ / 可燃ごみ) Food scraps Paper waste (soiled) Small leather or rubber items Small amounts of dirty plastic Collected typically 1–3 times a week. Missing the slot often means your waste will be left behind until next collection. Non-Burnable Ga...

How to Rent an Apartment in Japan

How to Rent an Apartment in Japan Renting an apartment in Japan can feel complicated, especially for foreign residents. Multiple fees, guarantor requirements, strict screening, and detailed contracts make the process very different from many other countries. This guide explains the main steps, typical costs, and practical tips to protect your money when moving in and moving out. 1) Overview of the Renting Process The general flow when renting in Japan looks like this: Search for properties (online portals, agencies, corporate contacts). Property viewings (内見 / naiken). Application and screening (申込・審査). Contract signing (契約). Move-in inspection and key handover. At each stage, you may be asked for documents and payments, so it helps to understand the full cost picture upfront. 2) Typical Upfront Costs (Example: ¥100,000 Monthly Rent) For an apartment with ¥100,000 monthly rent, a typical initial cost breakdown might look like this: Deposit (敷金) : usual...

How to File Taxes in Japan

How to File Taxes in Japan (2025 Guide for Foreign Residents) Whether you work full-time for in as a company employee or freelance independently, understanding Japan’s tax filing process is essential. While most employees’ taxes are handled automatically through payroll, others must file manually. This 2025 guide explains who needs to file, how to do it, and what happens if you leave Japan mid-year. 1) Who Needs to File a Tax Return (確定申告 / Kakutei Shinkoku) In Japan, income taxes are generally withheld from your salary each month, and your employer performs a year-end adjustment (年末調整 / nenmatsu chousei) . If that adjustment covers your total income, you usually don’t need to file anything. However, you must file a tax return if any of the following apply: You changed jobs during the year (two or more employers). You have freelance, rental, or investment income. You left Japan before December and didn’t receive year-end adjustment. You want to claim extra deduct...

What to do before leaving Japan

Leaving Japan? Essential Checklist Before You Go Planning to leave Japan soon? Before you board your flight, there are a few important legal and administrative steps to complete. From city hall notifications and unpaid taxes to pension withdrawals and phone contracts, here’s a full breakdown of what to do before departure—and why timing matters if you’re leaving around the end of the year. 1) File a Moving-Out Notification (転出届) Visit your city or ward office and submit a moving-out notification (転出届 / tenshutsu todoke) within 14 days before leaving Japan. This officially cancels your residence record and stops local residence tax from accruing after you leave. Bring your residence card and My Number card (or notification card). You’ll receive a Moving-Out Certificate (転出証明書) —keep this for airport or visa procedures. This also deactivates your enrollment in the national health insurance system, unless you have company coverage. 2) Taxes: Why Timing Matters Ja...

How the Japanese Pension System Works for Foreign Residents

How the Japanese Pension System Works for Foreign Residents (2025 Guide) Japan’s public pension is part of the national social security system alongside health insurance and employment insurance. If you live and work in Japan, you will be required to enroll and contribute. 1) Different types of Pension Plans National Pension (Kokumin Nenkin) : For the self-employed, freelancers, part-timers, and students (ages 20–59). Employees’ Pension (Kosei Nenkin) : For company employees; premiums are shared by employee and employer and deducted from salary. Private/Optional Plans : e.g., corporate DC plans or iDeCo for additional retirement savings. 2) How Contributions Work (2025) National Pension : Flat monthly premium (FY2025) of ¥17,510 . Employees’ Pension : Income-based premium at a total rate of 18.3% of standard monthly remuneration, split roughly 50/50 between employer and employee. Deducted automatically from payroll. 3) How Benefits Are Calculated Bene...

Japan’s My Number System Explained

Japan’s My Number System Explained Japan’s “My Number” system (マイナンバー制度) is a unique system in Japan. It assigns every resident — Japanese or foreign — a unique 12-digit number for taxation, social security, and government-related procedures. Introduced in 2016, it’s now deeply integrated into Japan’s digital infrastructure and is required for most administrative and financial tasks. 1) What Is the My Number System? My Number is Japan’s version of a national identification number. It connects your personal information across government databases such as tax, pension, and health insurance. The goal is to streamline processes, prevent errors, and improve efficiency between institutions. Each resident — including foreign nationals who have lived in Japan for more than three months — receives a My Number notification card or My Number Card after registering their address at the local ward office. 2) What Is It Used For? My Number is required in many situatio...