Japan Payroll News

Increase of the unemployment insurance taxes on salaries from October 2022

From October 2022, the unemployment insurance tax rate on salaries will increase. The current rate is 0.95% in total which will increase to 1.35%.

The total unemployment  insurance tax is paid between company and employee. Current rate for company share is 0.65% and for employee 0.3%, which will increased to 0.85% and 0.5% respectively.

Increase of the unemployment insurance taxes on salaries from April 2022

From April 2022, the unemployment insurance tax rate on salaries will increase. The current rate is 0.9% in total which will increase to 0.95%.

The total unemployment  insurance tax is paid between company and employee. Current rate for company share is 0.6% and for employee 0.3%, which will increased to 0.65% and 0.3% respectively.

Decrease of the Nursing insurance on salaries from March 2022

Japan Health Insurance Association announced that the rate of nursing insurance will decrease from March 2022. It will change from 1.80% to 1.64%.

Nursing insurance is calculated by: Standard Monthly Salary (and Bonus) X Insurance rate

The first payroll calculation with this new rate will appear in April payroll. However, on the bonus, the new rate should be applied to March bonus calculation.

Please note that nursing insurance is paid only by people from 40 to 64 years old.

Decrease of the Health insurance tax on salaries from March 2022

Japan Health Insurance Association announced that the Health insurance tax rate will decrease from March 2022. Each prefecture has a difference tax rate.

For example, in Tokyo, the current rate is 9.84%, which will decrease to 9.81 %.

A 50% / 50% Health insurance contribution is made between the company and the employee. As such, both company and employee will pay 4.905% (e.g. rates for Tokyo) of the total of the employee’s monthly salary and commuting cost with a cap.

Please note that this tax rate decrease will appear in April payroll onward since there is one month delay between the tax due and actual deduction from salary.

For bonuses, the new rate will be applied on the March bonus calculation.

Increase of the Nursing insurance on salaries from March 2021

Japan Health Insurance Association announced that the rate of nursing insurance will increase from March 2021. It will change from 1.79% to 1.80%.

Nursing insurance is calculated by: Standard Monthly Salary (and Bonus) X Insurance rate

The first payroll calculation with this new rate will appear in April payroll. However, on the bonus, the new rate should be applied to March bonus calculation.

Please note that nursing insurance is paid only by people from 40 to 64 years old.

Decrease of the Health insurance tax on salaries from March 2021

Japan Health Insurance Association announced that the Health insurance tax rate will decrease from March 2021. Each prefecture has a difference tax rate.

For example, in Tokyo, the current rate is 9.87%, which will decrease to 9.84 %.

A 50% / 50% Health insurance contribution is made between the company and the employee. As such, both company and employee will pay 4.92% (e.g. rates for Tokyo) of the total of the employee’s monthly salary and commuting cost with a cap.

Please note that this tax rate decrease will appear in April payroll onward since there is one month delay between the tax due and actual deduction from salary.

For bonuses, the new rate will be applied on the March bonus calculation.

Revised ceiling of the Pension payroll taxes on salaries from September 2020

From September 2020,  ceiling of the pension tax on salaries will be revised from 620,000 JPY to 650,000JPY.

The total Japan Pension payroll tax is paid 50%/50% between company and employee. As such, company and employee both pay 9.15% each from the monthly salary plus commuting costs refunded to employee.

Please note that this payroll tax raise will appear on October payroll since there is a month lag between the payroll tax due and the date when it is actually deducted from salary.

For more details on payroll calculation see our payroll website: http://japan-payroll.com/

Increase of the Children Upbringing taxes on salaries from May 2020

Japan Pension Service has announced the increase in the Children Upbringing taxes from May 2020. The rate has increased from 0.34% to 0.36%. The new rate will apply from the May payroll and April bonus.

Children Upbringing taxes are paid 100% by the company.

Increase of the Nursing insurance on salaries from March 2020

Japan Health Insurance Association announced that the rate of nursing insurance will increase from March 2020. It will change from 1.73% to 1.79%.

Nursing insurance is calculated by: Standard Monthly Salary (and Bonus) X Insurance rate

The first payroll calculation with this new rate will appear in April payroll. However, on the bonus, the new rate should be applied to March bonus calculation.

Please note that nursing insurance is paid only by people from 40 to 64 years old.

Decrease of the Health insurance tax on salaries from March 2020

Japan Health Insurance Association announced that the Health insurance tax rate will decrease from March 2020. Each prefecture has a difference tax rate.

For example, in Tokyo, the current rate is 9.90%, which will decrease to 9.87 %.

A 50% / 50% Health insurance contribution is made between the company and the employee. As such, both company and employee will pay 4.935% (e.g. rates for Tokyo) of the total of the employee’s monthly salary and commuting cost with a cap.

Please note that this tax rate decrease will appear in April payroll onward since there is one month delay between the tax due and actual deduction from salary.

For bonuses, the new rate will be applied on the March bonus calculation.

Increase of the Children Upbringing taxes on salaries from May 2019

Japan Pension Service has announced the increase in the Children Upbringing taxes from May 2019. The rate has increased from 0.29% to 0.34%. The new rate will apply from the May payroll and April bonus.

Children Upbringing taxes are paid 100% by the company.

Increase of the Nursing insurance on salaries from March 2019

Japan Health Insurance Association announced that the rate of nursing insurance will increase from March 2019. It will change from 1.57% to 1.73%.

Nursing insurance is calculated by: Standard Monthly Salary (and Bonus) X Insurance rate

The first payroll calculation with this new rate will appear in April payroll. However, on the bonus, the new rate should be applied to March bonus calculation.

Please note that nursing insurance is paid only by people from 40 to 64 years old.

Increase of the Children Upbringing taxes on salaries from May 2018

Japan Pension Service has announced the increase in the Children Upbringing taxes from May 2018. The rate has increased from 0.23% to 0.29%. The new rate will apply from the May payroll and April bonus.

Children Upbringing taxes are paid 100% by the company.

Decrease of the Health insurance tax on salaries from March 2018

Japan Health Insurance Association announced that the Health insurance tax rate will decrease from March 2018. Each prefecture has a difference tax rate.

A 50% / 50% Health insurance contribution is made between the company and the employee. As such, both company and employee will pay 4.95% (e.g. rates for Tokyo) of the total of the employee’s monthly salary and commuting cost with a cap.

Please note that this tax rate decrease will appear in April payroll onward since there is one month delay between the tax due and actual deduction from salary.

For bonuses, the new rate will be applied on the March bonus calculation.

Decrease of the Nursing insurance on salaries from March 2018

Japan Health Insurance Association announced that the rate of nursing insurance will increase from March 2018. It will change from 1.65% to 1.57%.

Nursing insurance is calculated by: Standard Monthly Salary (and Bonus) X Insurance rate

The first payroll calculation with this new rate will appear in April payroll. However, on the bonus, the new rate should be applied to March bonus calculation.

Please note that nursing insurance is paid only by people from 40 to 64 years old.

Increase of the Children Upbringing taxes on salaries from May 2017

Japan Pension Service has announced the increase in the Children Upbringing taxes from May 2017. The rate has increased from 0.20% to 0.23%. The new rate will apply from the May payroll and April bonus.

Children Upbringing taxes are paid 100% by the company.

Decrease of the Health insurance tax on salaries from March 2017

Japan Health Insurance Association announced that the Health insurance tax rate will decrease from March 2017. Each prefecture has a difference tax rate.

For example, in Tokyo, the current rate is 9.96%, which will decrease to 9.91 %.

A 50% / 50% Health insurance contribution is made between the company and the employee. As such, both company and employee will pay 4.955% (e.g. rates for Tokyo) of the total of the employee’s monthly salary and commuting cost with a cap.

Please note that this tax rate decrease will appear in April payroll onward since there is one month delay between the tax due and actual deduction from salary.

For bonuses, the new rate will be applied on the March bonus calculation.

Rise of the Nursing insurance on salaries from March 2017

Japan Health Insurance Association announced that the rate of nursing insurance will increase from March 2017. It will change from 1.58% to 1.65%.

Nursing insurance is calculated by: Standard Monthly Salary (and Bonus) X Insurance rate

The first payroll calculation with this new rate will appear in April payroll. However, on the bonus, the new rate should be applied to March bonus calculation.

Please note that nursing insurance is paid only by people from 40 to 64 years old.

Increase of the Children Upbringing taxes on salaries from May 2016

Japan Pension Service has announced the increase in the Children Upbringing taxes from May 2016. The rate has increased from 0.15% to 0.2%. The new rate will apply from the May payroll and April bonus.

Children Upbringing taxes are paid 100% by the company.

Decrease of the Health insurance tax on salaries from March 2016

Japan Health Insurance Association announced that the Health insurance tax rate will increase from March 2016. Each prefecture has a difference tax rate.

For example, in Tokyo, the current rate is 9.97%, which will decrease to 9.96 %.

A 50% / 50% Health insurance contribution is made between the company and the employee. As such, both company and employee will pay 4.98% (e.g. rates for Tokyo) of the total of the employee’s monthly salary and commuting cost with a cap.

Please note that this tax rate decrease will appear in April payroll onward since there is one month delay between the tax due and actual deduction from salary.

For bonuses, the new rate will be applied on the March bonus calculation.

Disclaimer: This information is for illustration purpose only. JMC cannot be held liable for any decision made based on this information. For any advice regarding taxes in Japan, Licensed tax accountant should be consulted.

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