Friday, June 7, 2013

Japanese Payroll Translation and Explanation

For many foreign staff in Japan (and even for many Japanese as well), the payroll system can sometimes be a mystery that they forfeit trying to understand.

After seeing this for years I thought this following post, which I intend to revisit and update periodically, could help serve as a quick guide for those trying to better understand their payroll.


In order to help those looking to decipher their payroll slip(s), and once translated, better understand how they apply to gross & net income, etc., I thought it might be best to begin with translations & later update this post with deeper explanations of some of the Keywords below.


Payroll Keywords:
勤怠他 - Kintai-ta - Attendance
出勤日数 - Shukkin-nissū - Work Day
出勤時間 - Shukkin-jikan - Working Hours
支給 - Shikyū - Earnings/Payments
支給合計 - Shikyū gōkei - Gross Earnings
基本給 - Kihonkyū - Base Salary
Salary Adj - Salary Adjustment (duh)
賞与 - Shōyo - Bonus/Commission
通勤手当 - Tsūkin-teate - Commutation Allowance
課税支給合計 - Kazei shikyū gōkei - Taxable Income
非税支給合計 - Hi zei shikyū gōkei - Non-Taxable Income
控除 - Kōjo - Deductions
厚生年金Kōsei nenkin - Pension
健康保険料 - Kenkōhoken-ryō - Health Insurance
介護保険料 - Kaigo hoken-ryō - Long-Term Care Insurance
厚生年金保険 - Kōsei nenkin hoken - Pension Insurance
雇用保険料 - Koyō hoken-ryō - Labor Insurance
社会保険料計 - Shakai hoken-ryō-kei - Total Social Insurance
所得税 - Shotoku-zei - Income Tax
調整額 - Chōsei-gaku - Adjustments
年末調整還付 - Nenmatsu chōsei kanpu - Year-end Adjustments (Refund)
年末調整徴収 - Nenmatsu chōsei chōshū - Year-end Adjustments (Collections)
住民税 - Jūminzei - Residence Tax
社宅家賃 - Shataku-yachin - Rent
社保控除合計 - Shaho kōjo gōkei - Total Company Insurance
社員貸付金 - Shain kashitsuke-kin - Loan Repayment
社宅家賃 - Shataku yachin - Rent Payment
扶養人数 - Fuyō ninzū - Number of Dependents
総支給金額 - Sō shikyū kingaku - Grand Total
控除合計額 - Kōjo gōkei-gaku - Deduction Total
差引支給額 - Sashihiki shikyū-gaku - Net Earnings
銀行振込額 - Ginkō furikomi-gaku - Amount Transfered to Bank
税額表 - Zeigaku-hyō - Tax Table
健保標準報酬 - Kenpo hyōjun hōshū - Health Insurance Average
厚年標準報酬 - Atsu-nen hyōjun hōshū - Pension Average


Ministry of Health, Labour, & Welfare (MHLW)
Japanese: http://www.mhlw.go.jp/
English: http://www.mhlw.go.jp/english/
YouTube Channel: http://www.youtube.com/user/MHLWchannel?feature=watch

Video - Introduction to the Japanese Pension Service / 日本年金機構のご紹介
http://www.youtube.com/watch?v=2nhszcTSuTk

Online Pension Service, "Nen-kin Net" / 「ねんきんネット」のご紹介





Characteristics of Japan’s social security system
http://www.mhlw.go.jp/english/social_security/dl/social_security6-a.pdf

1. Coverage of all citizens’ pension, medical care and long-term care (universal health insurance and pension systems)
- Pension, medical care and long-term care systems, which constitute the majority of social security benefits, are operated using a social insurance scheme.
- Pension system ensures pensions supporting the base of old-age life.
- Health insurance system gives every citizen an opportunity to receive medical service anywhere, any time with a health insurance card.
- Long-term care insurance system guarantees care needed to ensure independent life for people even in
conditions requiring long-term care due to aging.

2 Financial management by combining “insurance contribution” and “taxes,” using public funds for the social insurance scheme
- Social security heavily depends on insurance contribution; it is funded about 60% by insurance contribution, about 30% by public expenditure, and about 10% by asset income.

3 Two-fold system: one for “salaried workers” and another for “self-employed”
- The system consists of occupational insurance (Health Insurance, Employees’ Pension) for salaried workers (employees) and insurance (National Health Insurance, National Pension) for the self-employed, including
farmers and the elderly

4. Division and coordination of roles and responsibilities among
the national, prefectural and municipal governments
- Among social security systems, pension systems are mainly operated by the national government, health care
systems by prefectural governments, and welfare systems by municipal governments.
- Private organizations play key roles in medical and welfare services.


日本の社会保障制度の特徴
http://www.mhlw.go.jp/seisakunitsuite/bunya/hokabunya/shakaihoshou/dl/01.pdf

1 すべての国民の年金、医療、介護をカバー(国民皆保険・皆年金体制)
・ 社会保障給付の大宗を占める年金・医療・介護は、社会保険方式により運営
・ 年金制度は、高齢期の生活の基本的部分を支える年金を保障
・ 医療保険制度は、「誰でも、いつでも、どこでも」保険証1枚で医療を受けられる医療を保障
・ 介護保険制度は、加齢に伴う要介護状態になっても自立した生活を営むことが出来るよう必要な介護を保障

2 社会保険方式に公費も投入し、「保険料」と「税」の組み合わせによる財政運営
・ 社会保障の財源は、約60%が保険料。約30%が公費、約10%が資産収入等で、保険料中心の構成。

3 「サラリーマングループ」と「自営業者等グループ」の2本立て
・ サラリーマン(被用者)を対象とする職域保険(健康保険、厚生年金)と自営業者、農業者、高齢者等を対象とする自営業者等グループ(国民健康保険、国民年金)の2つの制度で構成。

4 国・都道府県・市町村が責任・役割を分担・連携
・ 年金等は国、医療行政は都道府県、福祉行政は市町村がそれぞれ中心となって、社会保障制度を運営

・ 医療・福祉サービスにおいては、民間主体が重要な役割を果たしている。


Social security system supporting people throughout their lifetime
The following links provide detailed information that helps to break down and explain the allocation of pension to support national healthcare, health insurance, & long term care:

English: http://www.mhlw.go.jp/english/social_security/dl/social_security6-b.pdf
Japanese: http://www.mhlw.go.jp/seisakunitsuite/bunya/hokabunya/shakaihoshou/dl/02.pdf







Changes in social security expenditure

http://www.mhlw.go.jp/english/social_security/dl/social_security6-e.pdf

http://www.mhlw.go.jp/seisakunitsuite/bunya/hokabunya/shakaihoshou/dl/05.pdf


"The Point of the Pension Plan"
English: http://www.mhlw.go.jp/english/org/policy/dl/p36-37_1.pdf

This is a full history and explanation of Japan's pension system.


Labour Statistics
If you might be interested in learning what is happening in the external environment to measure its effect on your income, the MHLW provides monthly reports:
http://www.mhlw.go.jp/english/database/db-l/index.html