What Japanese salary figures mean

gross, bonus included, and about 15–25% short of what arrives

Three different numbers get called "salary" in Japan, and they are not close to each other. Knowing which one you are looking at matters more than any comparison you make with it.

This page explains the rules. For the numbers — what companies actually pay — see the benchmark page.

The figure this site publishes

Listed companies disclose an average annual salary in their annual securities report. It is gross, and it includes bonus and overtime, averaged across employees — directors are excluded, and so usually are contract and dispatched staff, which pushes the average up at companies that use them heavily.

Because it is an average, it moves when the workforce changes shape. A company whose young staff leave will report higher average pay without anyone getting a rise. Corpus has tested how often that happens.

What a job advertisement quotes

Japanese job ads normally quote monthly pay, and the annual figure is left implicit — monthly pay times twelve, plus however many months of bonus the employer pays. Confirm the bonus separately; it is not guaranteed by law.

Watch for a fixed overtime allowance folded into the monthly figure. It must be disclosed along with the hours it covers, but it is easy to miss and it materially changes the hourly rate.

What comes out before it arrives

Employees pay health insurance (roughly 10% of standard remuneration, split evenly with the employer, varying by prefecture and scheme), employees' pension (18.3%, split evenly, unchanged since 2017), long-term care insurance from age 40, and a small employment insurance share. Income tax is withheld monthly and reconciled by the employer at year end.

Inhabitant tax is the one that surprises people. It is levied at roughly 10% on the previous calendar year's income and collected from June of the following year. A first year in Japan therefore carries almost none of it, and the second year feels like a pay cut even with no change in salary.

Take-home for a typical salaried employee lands around 75–85% of gross, lower at higher incomes. Contribution rates change; treat these as orders of magnitude, not as a calculator.

Work out your take-home pay

What is left of a Japanese salary after social insurance and tax. Enter the bonus separately as part of the annual figure — social insurance treats bonuses differently from monthly pay.

Take-home (estimate)
¥0m
Per month
¥0m
0.0% of gross

Amounts are in units of 10,000 yen (man), the unit Japanese salaries are quoted in. 500 means ¥5,000,000.

How this is calculated: employees' pension is 18.3% and employment insurance 0.5% of gross; long-term care insurance 1.62% from age 40; child-care support levy 0.23% (from April 2026); all except employment insurance are split evenly with the employer. The health insurance rate varies by prefecture and scheme, so it is an input (the default 9.9% matches the FY2026 median of the 47 prefectural rates, 9.88%). Income tax applies the employment income deduction (floor ¥650,000), the basic deduction (tiered from ¥580,000 to ¥950,000 for 2026, by total income) and ¥380,000 per dependant, then the statutory table plus the 2.1% reconstruction surtax. Inhabitant tax is 10% plus a flat ¥5,000. All of these changed between 2025 and 2026 — how much they moved take-home pay is measured across 3,780 listed companies here. These are estimates. Standard remuneration is set by a grade table rather than the raw monthly figure, so the real deduction differs by a few thousand yen, and various further credits are not modelled. Check your payslip and withholding statement.

Inhabitant tax is charged on the previous year's income and collected from June of the following year — which is why a first year in Japan carries almost none of it, and the second year feels like a pay cut. Tick the box above to see the difference.

Other calculators

Childcare leave benefitUnemployment benefitWhat the 2026 changes didall calculators. The salary you enter is carried across.

Common questions

What is take-home pay in Japan as a share of gross?
Around 75–85% for a typical salaried employee, lower at higher incomes. Health insurance, employees' pension, employment insurance, income tax and inhabitant tax are deducted.
Why does my Japanese take-home pay fall in the second year?
Inhabitant tax is levied at roughly 10% on the previous calendar year's income and collected from June of the following year. A first year in Japan carries almost none of it.
What does average annual salary mean in a Japanese annual report?
Gross pay including bonus and overtime, averaged across employees. Directors are excluded, and so usually are contract and dispatched staff. It covers the filing entity, normally the parent company on a non-consolidated basis.
How much is take-home pay on a 5 million yen salary in Japan?
About ¥3.90m a year, or 78% of gross, after social insurance, income tax and inhabitant tax. This assumes a bonus of about 19% of annual pay, no dependants and a 9.9% health insurance rate (plus a 0.23% child-care levy). In your first year in Japan the inhabitant tax is not yet charged, so it comes to ¥4.14m.
How much is take-home pay on a 10 million yen salary in Japan?
About ¥7.16m, or 72% of gross — a lower share than the 78% kept on 5 million yen, because Japanese income tax is progressive.
What percentage of a Japanese salary do you keep?
Between about 75% and 85% at ordinary salary levels, falling as pay rises: 80% on 3 million yen, 77% on 6 million, 72% on 10 million and 68% on 15 million. Employees' pension contributions are capped, but the progression in income tax outweighs that.
How much less do you take home in your second year in Japan?
Inhabitant tax starts in June of your second year, charged on the previous calendar year's income. On a 5 million yen salary that is the difference between ¥4.14m and ¥3.90m — around ¥240,000 a year.
What are lifetime earnings in Japan after tax?
Across 3,780 listed companies the median estimate is about ¥178m from age 22 to 60, excluding any retirement payout. The highest is ¥515m against a gross figure of ¥837m — the share kept falls as pay rises.

Before you rely on this

Other guides

BonusesRetirement lump sumsGraduate hiringPaid leaveOvertimeParental leaveWomen in managementReading salary figuresContracts and dismissalAnnual securities reportsall guides.

Sources: Health Insurance Act / Employees' Pension Insurance Act / Income Tax Act (Act No. 33 of 1965) / Local Tax Act. Summarised by Corpus; not provided or endorsed by any government agency. The figures behind the linked benchmark pages come from Japanese government statistics and company disclosure — see all benchmarks.