The Japan Navigator

How Japanese Health Insurance Premiums Are Calculated (With Real Salary Examples) If you live and work in Japan, health insurance costs can feel confusing and unpredictable. Premiums often change, sometimes sharply, and frequently do not match your current salary. This is not an error — it is how the Japanese system is designed. This article explains how Japanese health insurance premiums are actually calculated , why many foreign residents are surprised by higher bills in their second year, and how costs differ depending on whether you are an employee or self-employed. Realistic salary examples are included to help you estimate your own situation. The Two Health Insurance Systems in Japan Japan has two main public health insurance systems. Which one you are enrolled in determines how your premiums are calculated. Employee Health Insurance (Shakai Hoken) This applies if you are a full-time employee — or a qualifying part-time employee — at a company. You are enroll...

How Health Insurance Works in Japan (2025 Guide for Foreign Residents) Japan’s healthcare system is widely respected for its accessibility and quality — and participation is mandatory for everyone who resides in the country. Whether you’re employed, self-employed, or studying, you must be enrolled in either Employee Health Insurance (Shakai Hoken) or National Health Insurance (Kokumin Kenko Hoken) . This guide explains how Japan’s health insurance works, how to register, and what to expect in terms of costs and coverage. 1) Types of Health Insurance in Japan Japan operates a universal health insurance system, meaning all residents must join one of the following: Employee Health Insurance (社会保険 / Shakai Hoken): For full-time employees. Enrollment is handled by your employer, and premiums are automatically deducted from your monthly salary. Employers cover roughly half of the total contribution. National Health Insurance (国民健康保険 / Kokumin Kenko Hoken...

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...

Being Self-Employed in Japan: Hidden Costs No One Warns You About Being self-employed in Japan often looks attractive on paper: flexibility, autonomy, and higher gross income potential. In reality, many freelancers and solo business owners underestimate the hidden costs that only appear after the first year. This article explains the main financial blind spots for self-employed residents in Japan — especially foreigners — and why cash flow often feels tighter than expected even when income is decent. The First-Year Illusion Many self-employed people feel financially comfortable in their first year. This is usually temporary. Common reasons: No residence tax yet Low National Health Insurance premiums Limited pension contributions in the prior year In year two, all of these costs arrive at once. National Health Insurance Is Income-Based — and Expensive Self-employed residents are enrolled in National Health Insurance (Kokumin Kenkō Hoken) , which is man...

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...

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...

How to Register Your Address and My Number After Moving in Japan After moving to a new home in Japan, it’s important to register your new address and update your My Number (マイナンバー) details. These two things are essential for everything from health insurance and taxes to opening a bank account or even signing up for utilities. This guide explains how the process works, what documents you need, and what to expect when visiting your local city or ward office. 1) Why Address Registration Matters When you move to a new apartment or house in Japan, you are required by law to notify your local ward or city office within 14 days of moving. This process is called tennyu todoke (転入届) or address registration. Once completed, your residence card is updated with your new address, and this change automatically links to government systems such as the National Health Insurance, pension, and tax records. 2) Step-by-Step: How to Register Your Address Go to your loca...

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...

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...

National Pension vs Employee Pension in Japan (What You Actually Get) Japan’s pension system is often described as simple, but in practice it is widely misunderstood — especially by foreign residents. Many people contribute for years without a clear idea of what they will actually receive in retirement. This article explains the difference between National Pension (Kokumin Nenkin) and Employee Pension (Kōsei Nenkin) , how payouts are calculated, and what you can realistically expect based on income and years of contribution. The Two-Tier Pension System in Japan Japan’s public pension system has two main layers: National Pension (Kokumin Nenkin) – the base pension for all residents Employee Pension (Kōsei Nenkin) – an additional earnings-based pension for employees Which pension you contribute to depends entirely on your employment status. National Pension (Kokumin Nenkin) National Pension applies if you are: Self-employed or freelance Unemployed ...

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...

Cost of Living in Japan 2025 Japan remains one of Asia’s most desirable countries for expats, but living comfortably—especially in Tokyo or Osaka—comes with a significant price tag. This 2025 guide breaks down typical monthly costs for housing, utilities, food, and transportation, plus practical tips for managing expenses as a foreign resident. 1) Housing Costs Rent is the biggest expense for most residents. Prices vary by location, building age, and size. City 1LDK (Approx.) 2LDK (Approx.) Notes Tokyo (Central) ¥180,000–¥280,000 ¥250,000–¥400,000 Modern 10–15yo buildings preferred for safety Osaka ¥120,000–¥200,000 ¥180,000–¥280,000 Cheaper than Tokyo with spacious layouts Fukuoka ¥80,000–¥150,000 ¥130,000–¥200,000 Lower rent and utilities; growing expat sc...

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...

Saving Money in Japan - 2025 Guide Japan is not cheap, but living well here doesn’t have to mean overspending. This practical guide shows how to reduce monthly costs across housing, utilities, food, transport, banking, and everyday purchases—without sacrificing quality of life. It’s written for expats, professionals, and long-term residents who want a serious, no-fluff playbook for 2025. 1) Housing & Utilities Target 10–15 year old buildings: Safer construction standards than older stock, usually cheaper than new builds. Zero key money / reduced deposit listings: Ask agencies to filter for reikin 0 and shikikin 0–1 . Negotiate renewals: Renewal fees ( koshin-ryo ) are often one month’s rent; you can negotiate the fee or a rent adjustment with long tenancy and good payment history. Energy control: Use eco modes on AC, LED bulbs, low-hot-water settings, and a dehumidifier during rainy season to cut electricity. Check building interne...