Module: PYJP | Molga: 30 | Currency: JPY | Group: APAC
Includes: Shakai Hoken (社会保険) | SMR brackets | Nenmatsu Chosei | Resident Tax | 3 case studies
🧭 The Gross-to-Net Pipeline
Gross (/101) → Kosei Nenkin + Kenpo + Koyo Hoken → Shotokuzei (Income Tax) → Juminzei (Resident Tax) → NET PAY (/560)
Japan uses the Standard Monthly Remuneration (標準報酬月額 / SMR) salary bracket system. The employer performs year-end tax adjustment (Nenmatsu Chosei) in December.
📌 Japan Payroll Anchors
- Kosei Nenkin (厚生年金): 9.15% EE + 9.15% ER (on SMR)
- Kenpo Health (健康保険): ~5.0% EE (Tokyo; varies by prefecture)
- Koyo Hoken (雇用保険): 0.6% EE + 0.95% ER
- Shotokuzei: progressive withholding per NTA tables
- Juminzei (住民税): municipal + prefectural; June–May assessment cycle
- My Number (マイナンバー): mandatory individual ID
- Nenmatsu Chosei (年末調整): employer year-end tax adjustment in December
- SMR revision: September (定時決定) based on Apr–Jun average salary
👥 Case Studies
ㅤ | Case A: Engineer | Case B: Sales Rep | Case C: Manager |
Monthly Salary | JPY 350,000 | JPY 250,000 | JPY 900,000 |
SMR Bracket | Grade 26 | Grade 22 | Grade 43 |
Bonus | June + Dec | June + Dec | June + Dec |
🏗️ Step 1 — Salary Structure (JPY)
Component | WT | Monthly (JPY) | Notes |
Base Salary (基本給) | JP01 | 350,000 | Determines SMR bracket |
Commuting (通勤手当) | JP10 | 15,000 | Tax-free up to JPY 150,000/mo |
GROSS /101 | ㅤ | 365,000 | Commuting may be outside /101 |
🔢 Step 2 — Social Insurance (Case A: SMR JPY 360,000)
Branch | EE Rate | Monthly EE (JPY) |
Kosei Nenkin | 9.15% | 32,940 |
Kenpo (Tokyo) | 5.00% | 18,000 |
Koyo Hoken | 0.60% | 2,100 |
Total SI EE | ㅤ | 53,040 |
🔢 Step 3 — Income Tax (Shotokuzei)
- Taxable = Gross − SI EE = 350,000 − 53,040 = ~296,960
- Monthly withholding per NTA table (1 dependent): ~JPY 9,700
🔢 Step 4 — Net Pay Summary
ㅤ | JPY 350,000 gross |
Gross /101 | 350,000 |
Social Insurance EE | −53,040 |
Shotokuzei | −9,700 |
Juminzei (from June) | −~15,000 |
Net /560 | ~272,260 |
⚙️ Schema JP Touchpoints
PCR JPSI— SMR bracket assignment + SI calculation
ACTIO JPNC— Nenmatsu Chosei December adjustment
PCR JPTX— NTA withholding tax tables
- Bonus: special NTA bonus withholding table (different from monthly)
🏷️ Key Wage Types
WT | Description | Payslip? |
JP01 | Base Salary | ✅ |
/3N1 | Kosei Nenkin EE | ✅ |
/3K1 | Kenpo Health EE | ✅ |
/3U1 | Koyo Hoken EE | ✅ |
/3T1 | Shotokuzei | ✅ |
/3JT | Juminzei | ✅ |
/560 | Net Pay | ✅ |
📅 Statutory Calendar (Japan)
Activity | Deadline |
SI monthly filing | End of following month |
Shotokuzei deposit | 10th of following month |
SMR 定時決定 revision | September |
Nenmatsu Chosei | December payroll |
Gensen Choshu Hyo | By January 31 |
SuccessLabs Academy | SAP ECP Japan Payroll (PYJP) | Gross-to-Net Playbook