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Salary - what's left?

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Nov 25, 2014
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Checked the forum and tried to see if there was any info regarding the taxing system when it comes to income.
Saw the monthly payroll calculator but it seems a bit too complicated, Payroll in Japan Calculators by HTM - Monthly Payroll
I am just after a rule of thumb basically, no need for things to be 100 % accurate.

Situation.
Just moving to Tokyo, have plans of living there long term (+5 years). A Japanese company is paying 250,000 yen a month as salary. How much of it approximately ends up in one's pocket after taxes and such? (Which I read is paid once a year?)

Thanks,
 
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Wanted to edit my previous msg but my time expired. I checked this page, Taxes in Japan and wonder if I am correct about, keeping 216,875 yen each month? Calculating with a 10 % income tax and a montly extra tax 8,125 yen.

Let me know if I am forgetting about some other taxes or such.

Thanks
 
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While its doable, 250.000 in Tokyo will make you very budget conscious.

250.000 * 12 (I assume no bonuses) = 3 million annually.

Taxable Income Tax Rate
less than 1.95 million yen = 5% of taxable income
1.95 to 3.3 million yen = 10% of taxable income exceeding 1.95 million yen plus 97,500 yen

You would pay 97500 over the first part (5% of 1.95 million), and then 10 % over the rest, being 135.000
Total income tax will be 232500, leaving you with 230625 per month before any other taxes.

Any other taxes? Unfortunately yes! You will pay about 10% of your income on local government taxes, so 300.000 will be deducted.
All together you will pay about 530.000 yen in taxes, roughly 2 months salary. Per month you will have a net income of about 200.000 yen (1550 euro).
 
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Thanks for your replies. So about 200.000 after all those taxes. Adding the "unemployment contribution and health insurance payment", where would that leave me? Because I assume these two are compulsory?
 
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As for health insurance, I found this on Wikipedia:

In 2013 the calculation method for premiums changed.[8][9]

There are three types of NHI premiums. The head of household is responsible for payment, even if they are not a NHI member. The rate at which the premiums are calculated is based on the Resident's tax (住民税, juuminzei?) amount charged by the local municipal government. This is in turn based on income earned by that member during the previous calendar year. Resident’s tax is determined in June, and notifications are sent in July. Because of this, the yearly NHI premium is divided into 10 installments. In 2010 the premiums were:[10]

  • Category 1 - The basic premium (for regular NHI members.)
Calculated by multiplying the total residents tax paid by all NHI members in the household by 0.80. This is the income levy. Then multiplying the number of insured household members by 31,200. This is the per capita levy. These two levies added together are the annual premium that must be paid. The maximum possible is 500,000 per year.

  • Category 2 - The premium for supporting the elderly (for people older than 75.)
Calculated by multiplying the total residents tax paid by all NHI members in the household by 0.23. This is the income levy. Then multiplying the number of insured household members by 8,700. This is the per capita levy. These two levies added together are the annual premium that must be paid. The maximum possible is 130,000 per year.

  • Category 3 - For nursing care (for people in long-term care)
Calculated by multiplying the total residents tax paid by all category 2 NHI members in the household by 0.11. This is the income levy. Then multiplying the number of category 2 household members by 12,000. This is the per capita levy. These two levies added together are the annual premium that must be paid. The maximum possible is 100,000 per year.[11]
 
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Basically this is as far as I can help you, since I don't have experience in paying these. I think an English teacher on this site should be able to give you an accurate figure, as many earn about 250.000 per month like you do.

Good luck!

I just filled in the tax calculator that you provided in your first post.

If you fill in 250.000 as monthly salary, it says you pay 13.000 for health insurance, and 22700 for pension. Although this is included already in the deduction of your taxes. See calculations.
 
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Thanks a lot for your answer. Cant really say that I entirely grasp the "health insurance/Resident's tax" part but if someone has a clue, please, explain. At least I now know that I am down to around 200,000 before the "unemployment contribution and health insurance".
 
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Hello!
Yes, transportation would be included up to 50,000 yen a month.

Thanks for the calculation. So what you are saying is that the health insurance and the pension is already included? Which means we are still talking 200,000 yen (in the pocket) salary? (After health insurance and pension deductions)

There is still one thing I am wondering a bit about, "unemployment contribution". How much is that? Someone knows?

Once again, thank you for your answers.
 
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Well, I guess it's included in the approximately 50.000 yen of taxes you pay per month, but I'm not 100% sure. Input from someone with a similar paycheck would be helpful!

50.000 per month is enough to get you a bit away from Tokyo where rent is cheaper, so that's good!

Just curious, if not teaching English, what are you going to do?
 
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Hey!
I would really like to try teaching English. Apart from that, during my free time, I hope to be able to do some freelance work (journalism). Sell articles and such to papers back "home".
 
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Hey!
I would really like to try teaching English. Apart from that, during my free time, I hope to be able to do some freelance work (journalism). Sell articles and such to papers back "home".
Good :)

May I ask how you as a non-native speaker landed a teaching job from outside the country? I think many people here would like to know as I see this question quite often? There are some assumptions though (I saw you are from Sweden, so I guess you are Swedish, and I assum you arranged everything in Sweden..), so excuse me if this is incorrect :)
 

Vinc

Kouhai
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Hello Cocoichi!

I have not landed a teaching job yet. Sorry for the confusion. I just needed to know what I could expect if/when I land a job like this. There are however a lot of jobs that you can apply for, being outside of Japan. Many of them who do not require that you are a native speaker, rather, native level.

Once again. Apologies for earlier misunderstanding...

If anyone (teachers in Japan for example) knows more about salary/taxes please do not hesitate to fill in :)
 
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Non-native speakers who want to teach English cannot get a work visa unless they can prove that 12 years of their education have been provided entirely in English.

Health insurance is mandatory in Japan, but you will find Japanese and foreigners who secretly avoid paying it. It is pretty minimal for the first year (about 2500 yen/month), but the monthly payments go up tenfold or so thereafter, and the exact amount depends on your location, marital situation, age, etc. If you are caught not paying, you are liable for backpayments up to 2 years' worth, so keep that in mind.

Unemployment insurance premiums are up to the honesty of the employer to contribute.
 

Mike Cash

骨も命も皆此の土地に埋めよう
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I've looked into that two years of back payments thing and I believe the actual fact is that they can hit you up for any period of back payments. The have to go two years without dunning you before the premiums become forfeit.
 
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