Feb 14 2020 Japanese Payslip Guide
YAY! Finally, it’s that time of the month where your hard work pays off and you receive your salary. However, Japanese payslips can sometimes be confusing. There are many items listed on the pay slip and it might be difficult for you to understand exactly what each item means.
Let’s go over what each item means this time. (Please take note that the name of the items listed here maybe called differently in your salary slip and covered allowances are different from each company other than the statutory allowances, such as overtime work allowance, mid-night work allowance.)
The payslip is usually divided into three parts: “Attendance and Absence,” “Earnings,” and “Deduction.“
・Total Payment【Sou Sikyugaku/総支給額】
・Net Payment【Sashihiki Shiyugaku/差引支給額】
＜Attendance and Absence＞
・Number of Work Attendances【Shukkin Nissu /出勤日数】
・Numbers of Hours Worked【Shukkin jikan /出勤時間】
・Numbers of Absences 【Kekkin nissu /欠勤日数】
・Numbers of Compensatory Day Off【Daikyunissu/代休日数】
・Numbers of Hours of Tardiness and Leaving work before finishing work【Chikoku soutai jikan/遅刻早退時間】
・Numbers of Special Leaves such as Congratulation or Condolence Leave, Sick Leave etc.【Tokubetu kyuuka/特別休暇日数】
・Numbers of Used Paid Leaves【Yukyu Shiyou nissuu/有給使用日数】
・Balance of paid days-off【Yukyu zan nissuu/有給残日数】
・Overtime hours 【zangyo jikan/残業時間】
・Mid-night(22:00-5:00) overtime hours 【Shin’ya zangyo jikan/深夜残業時間】
・Basic pay【Kihonkyu/基本給】：The most fundamental part of monthly wages, It is calculated by the attributes of the worker, such as age, educational background, experience, abilities and so on, or factors associated with the employees job.
・Fixed overtime work allowance 【Kotei zangyoteate/固定残業手当or Teigaku zangyo teate/定額残業手当】：Allowance for “Deemed overtime”. The allowance corresponding to the overtime work hours specified in the notice of working conditions/employment contract.
・Overtime work allowance【Zangyo teate/残業手当】：The legal working hours are stipulated to be within 8 hours a day and 40 hours a week. If the employee works over this statutory working time, it is considered as “overtime work” under the Labor Standards Act. Extra-wage pay rate for the overtime work allowance is 25%. Extra wage pay rate applied to overtime work exceeding 60 hours per month (50% or higher) is applied for the large companies, and it will be applied for SMEs from April, 2023. Please be noted that this definition for “overtime work” under “Discretionary working system-Sairyo roudousei” or Flex-time system is different. Please see “Overtime work under Discretionary Working System and Flex-time system for details.
・Mid-night overtime work allowance【Shin’ya zangyo teate/深夜残業手当】: Allowance for overtime work between 10:00pm to 5am. In addition to Extra-wage pay rate for the overtime work allowance 25%, allowance for Mid-night work which rate is 25% will be paid. If you do overtime work between above mentioned time, the overtime work allowance would be appeared here not in “Overtime work allowane”part.
・Work on holidays【Kyujitsu shukkin /休日出勤】：There are two types of “holiday”. One is called “Statutory Holiday” which the employer should provide to the employee once a week or 4 days per 4 week. Another one is ”Non-statutory Holiday”. If the company set their holiday on Saturdays and Sundays either Saturday or Sunday is “Statutory Holiday” while another one is “Non-Statutory Holiday”. Extra wage rate for working on a statutory holiday is 35%. If the employee works on a non-statutory holiday, and their total working hours of that week is more than 40hours which is statutory working hours per week, the extra wage rate is 25%.
・Managerial position allowance【Yakushoku-teate/役職手当】:The allowance for roles and responsibilities as managers.
・Qualification Allowance【Shikaku-teate/資格手当】：Allowance for the person with the national license which is required to do that job, such as pharmacist etc.
・Housing Allowance 【Jukyo-teate/住居手当】：Employer subsidize employee housing costs . Each company can decide whether or not to pay housing allowance, the amount of payment, and the conditions of payment.
・Family Allowance【Kazoku-teate/家族手当】：Allowance for supporting life, depending on the family members depend on the employee.
・Non-taxable commutation allowance【Hikazei-tsukinhi/非課税通勤費】：Commuting allowance that is not subject to income tax. The portion exceeding JPY150,000 is subject to income tax.
・Employees’ Health Insurance【Kenko hoken /健康保険】：Insurance premium rate set by the health insurance union the company belong to.
・Nursing Care Insurance 【Kaigo hoken /介護保険】：For 40-65 years old . Insurance premium rate set by the health insurance union the company belong to.
・Employees’ Pension Insurance：Insurance rate set by government. The rate is 9.15% of the standard remuneration. （As of February 2020）
・Unemployment Insurance：The rate is 0.3% （As of February 2020）
・（Withholding）Income Tax【Gensen shotoku zei /（源泉）所得税】：Originally, income tax is paid by the employee to the tax office directly, however the employer can deduct it from the salary, and do “withholding” instead. The employer is supposed to calculate the tax amount levied on their eligible employees and compare them with the tax amount withheld in advance from the salaries and bonuses they paid to the respective employees during the year. And if there is any excess or deficiency, the “year-end adjustment” will be made on the December salary.
・Resident Tax【Juminzei /住民税】：Collected monthly from June to May of the following year according to the income of the previous year. Tax rate is different from each local government. It will be paid to the local government of registered address as of January 1st.
Overtime work under flextime: Company’s set working hours is liquidated within a designated period within one month. As long as your total work hours do not exceed the company’s set total hours, you will not be entitled to overtime payment.
Overtime work under Discretionary working system:The employer expects the employee to manage their work within the deemed working hours. Only following cases are considered as overtime work: 1. The company sets Deemed working hours more than 8 hours per day. 2. Work during mid-night 3. Work on holiday
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