Support information for life in Japan
To live in Japan, you don't get all the income you earn from work, and you have surprisingly many payments (subtracted from your salary) such as various insurance and taxes.
As specific examples, the main items deducted from your monthly salary (total payment) are as follows. See each detailed description below.
- (1) Health Insurance
- (2) Welfare pension insurance
- (3) Employment insurance
- (4) Nursing care insurance * For people over 40 years old
- (5) Resident tax
- (6) Income tax
Helpful information for daily life
Public medical insuranceEveryone who has an address in Japan must join Public medical insurance. Japan has a universal health insurance system. The personal share of expenses for medical care is 30% (the government pays 70%). This amount is one of the least payments for personal expenses of medical insurance share in the world.
The purpose of universal health insurance is to receive medical care with a peaceful mind even in accidents such as illness or injury. At its base is the spirit of mutual aid.
Health Insurance is a public medical insurance system that is for people employed by the company. The benefits are:
1. Half of the Health Insurance premium is paid by the company (the individual pays the half price)
Since the individual fully pays the National Health Insurance, the Health Insurance has the advantage of less personal burden.
2. The living security for an injury illness allowance and a maternity allowance system is prepared.
The above allowance is not provided for National Health Insurance in principle.
3. The National Health Insurance does not have a dependents system, and the whole family must join the insurance.
If you are an employee in a company and you get a monthly salary of 200,000 yen (total payment), and you take Health Insurance.
⇒ The insurance premium is originally about 20,000 yen. But, the company pays half of them, so your insurance payment is about 10,000 yen.
Public pensionEveryone who has an address in Japan must join it.
Japan, a universal pension system aims to allow people to spend their lives in old age with relief.
Here, we will explain the characteristics of the Employees' Pension Insurance with its merits.
The Employees' Pension Insurance is a public pension system that mainly enrolls people employed by the company.This insurance consists of the National Pension, the basic pension, plus the additional amount. Therefore the insurance premium is higher than that of the national pension.However, the hiring company and the workers have split equally the insurance premium in the Employees' Pension Insurance case.
In other words, the merit is that the actual burden on workers is light while paying a higher amount than the National Pension.
If you work for a company and get a monthly salary of 200,000 yen (total payment), you take the Employees' Pension Insurance.
⇒ The insurance premium is about 36,600 yen, but the company shares half of it. Therefore, the individual cost for the insurance is about 18,300 yen.
Even if you want to stay in Japan for a long time, some Overseas human resources may return to your country for unavoidable reasons. For such a case, we will explain the Lump-sum Withdrawal payments (Dattai Ichijikin) as following.
What is the Lump-sum Withdrawal Payment System (Dattai Ichijikin) ?A system that refunds a fixed amount according to the number of insurance premiums paid to overseas human resources who live in Japan for a short period and join the Japanese pension system (national pension and welfare pension) for six months or more and return home country.
Conditions for overseas human resources to receive Lump-sum Withdrawal Payment
Must join a welfare pension or national pension for at least six months
No address in Japan
The person who does not have or has never had the right to receive a pension such as a disability pension.
- (1) Lump-sum Withdrawal Payment Application form
- (2) A copy of your passport
- (3) Pension notebook / original
- (4) Documents that can confirm as following items; Bank name, Bank branch name, Branch location, Account number, and Claimer's account name.
The Lump-sum Withdrawal Payment Application form has a bank account stamp column, so please submit it after receiving certification from the bank in this column.
(1) Submit the Tax Payment Administrator's Notification Form to the tax office, and decide the agency person who will act for the refund procedure after returning to your own country. The agent will represent the refund procedure for the withholding deduction amount (20% of the total withdrawal lump sum).
Anyone who stays in Japan can act as an agent for the refund procedure. A tax administrator can also submit a tax administrator's notification form with a refund filing at the same time. The place of application will be the tax office where the overseas human resources lived.
* For the welfare pension, the income tax on the withholding system is refunded when the Lump-sum Withdrawal Payment is paid. On the other hand, the Lump-sum Withdrawal Payment of the National pension is not subject to income tax withholding.
(2) After you return to your home country, mail the above-required documents to the Japan Pension Service / Pension Service Center
(3) The Japan Pension Service confirms your documents and transfers the refund to the bank account you specified.
* After your documents are mailed and submitted, it will take 3 to 4 months to transfer the refund to the specified account. This point needs to be fully understood.
(4) The Japan Pension Service sends the Lump-sum Withdrawal Payment decision notice to the beneficiaries.
In welfare pension, this notice is mailed to the tax administrator, and the tax administrator applies for a tax return.
How much is the Lump-sum Withdrawal Payment?
It depends on the duration of staying in Japan and the amount of payment. Please check the reference PDF published by the Japan Pension Service.
* Under the current system, the maximum number of payment years was three years, but it was revised, and the maximum number of payment years is up to five years from April 2021. It responds to the increasing proportion of overseas human resources staying for three to five years. Because the overseas human resources qualified a specified skill worker (i), an upper limit of 5 years stay is increasing.
How long is the billing deadline?
Within two years from the date when you lost the address in Japan.
* Even if you quit the company and withdraw from the welfare pension, you cannot claim the Lump-sum Withdrawal Payment as long as you stay in Japan.
Employment insuranceIt is a type of social insurance (labor insurance) that allows you to receive the necessary benefits (income security and reemployment support) before you get the next job when you lose your job.
If you are an employee in a company and get a salary of 200,000 yen (total payment), your employment insurance is about 600 yen.
Nursing care insuranceThis system aims to support the burden for people in need of nursing care throughout society. Citizens over 40 years are insured persons of nursing care insurance, and they are obliged to pay care insurance premiums.
If you are an employee in a company and get a salary of 200,000 yen (total payment), your nursing care insurance premiums are approximately 1,800 yen.
Income taxIt is the system to tax an individual annual income.
If you are an employee in a company and get a salary of 200,000 yen (total payment), your income tax is approximately 3,800 yen.
Resident taxWhen you have an address in Japan as of January 1st and received a specific salary or more, even Overseas human resources must pay this tax to the municipality where they live.
If you are an employee in a company and get a salary of 200,000 yen (total payment), your resident tax is approximately 7,500 yen.
Expenditure in life, though it is not directly deducted from your salary
Convert car licenseIf you have a foreign driver's license, you need to convert it to a Japanese one at the driver's license center in your prefecture where you live.
The cost depends on the license center, but it costs about 10,000 yen.
(1) Submit application documents
- ・Residence card
- ・Residence certificate described your nationality
- ・Valid foreign driver's license
- ・ID photo (length 3 cm x width 2.4 cm, color)
- ・Japanese driver's license (if you have obtained it in Japan in the past)
- ・Translated text is required when the above documents have written in a foreign language. (However, the documents issued by individuals or translation companies are inappropriate.)
(2) Aptitude test
- ・Eyesight test (20/28.5 vision or more for both eyes, 20/66.6 vision or more for one eye)
- ・Color discrimination ability test (discrimination judgment for red / blue / yellow)
(3) Confirmation of traffic rules * Not applicable to the following 29 countries
- ・Traffic rules are confirmed. If you do not study in advance, it won't be easy to pass the first exam. You should purchase teaching materials and check them.
- ・The knowledge confirmation test is in a multiple-choice manner, and a passing score is seven or more correct answers out of 10 questions.
- ・Languages other than Japanese are also possible, but it is better to check the test site in advance.
(4) Confirmation of driving skills * Not applicable to the following 29 countries
- ・The most challenging subject in the exam. It is not a check that you can drive or not. Your driving is checked in according to the certification criteria.
- ・Some overseas human resources practice the driving skill at the driving school in advance.
One confirmation test takes about 1 hour, and it costs about 5,000 to 10,000 yen.
* The 29 countries that do not need to do (3) and (4).
Automobile inspectionVehicles that have not been inspected cannot drive on public roads.
passenger cars (including motorcycles). However, the first vehicle inspection is three years after registration when you purchase a new vehicle.
Automobile inspection consists of three parts: legal fee, basic vehicle inspection fee, and maintenance cost (parts replacement, etc.).
(1) Automobile weight tax
Taxes depending on the weight of the car
The market price is about 5,000 to 75,000 yen.
* The price varies depending on vehicle type, driving years, vehicle weight, and whether or not an eco-car tax reduction.
(2) Liability insurance
Everyone joins the liability insurance at the same time as purchasing a car.
This tax is often called compulsory insurance, and it aims to relieve victims and provide compensation for only humans other than drivers and automobile operators. It varies depending on the contract period and vehicle type according to the validity period of the vehicle inspection.
The market price is about 13,000 to 30,000 yen.
* Varies depending on vehicle type and contract period.
(3) Revenue stamp fee
It means the required inspection fee for vehicle inspection. You prepare the Revenue stamp for Motor-vehicle inspection registration and the Vehicle inspection certificate according to the vehicle type. These revenue stamps are for the National Government and the National Agency of Vehicle Inspection.
It is also essential that the price of revenue stamps and certificate stamps vary depending on the factory undergoing the vehicle inspection.
The market price is 1,100 yen to 1,800 yen.
The basic price for vehicle inspection
It varies depending on the vendor or vehicle type.
Market cost is 10,000 to 80,000 yen.
Maintenance costIt varies depending on the maintenance contents. The more maintenance is lacking, the higher the maintenance fee will be.
Examples of overall vehicle inspection costExample 1) Light vehicle: Approximately 70,000 yen + maintenance cost
Example 2) Standard size car (1,500 CC): Approximately 100,000 yen + maintenance cost
(1) Automobile taxTaxes on people who own a car (every year)
Light car: Approximately 11,000 yen
(2) Parking lotIt is the cost required to park a car (monthly).
If you live in a rental contract, you need it in addition to the rent.
Aichi prefecture: Average cost is approximately 14,000 yen (suburbs: min. 3,000 yen, urban areas: max 100,000 yen)
Osaka prefecture: Average cost is approximately 27,000 yen (suburbs: min. 3,000 yen, urban area: max. 150,000 yen)
(3) Cost of gasolineIt is the fuel to drive a car, and the unit price differs depending on light oil, regular, or high-octane fuel. Gasoline costs fluctuate daily.
In Japan, the gasoline price includes the gasoline tax and consumption tax (so, it is called double taxation), and we think it is higher than in other countries. If you're planning to buy a car, you should confirm which petrol type your vehicle uses.
Premiun: 160 yen/L
Diesel fuel: 130 yen/L
(4) The price of a car
[For new cars]
Standard vehicle (1500 CC): Approximately 2.5 million yen or more
・Motorbike (Scooter): Approximately 150,000 yen or more
・Bicycle: 10,000 yen or more
Contract typeThe contract type is either an individual or a corporate contract.
When you select the individual contract, you have to take move-in credit research before the move-in contract. A guarantor is often necessary for most contracts.
In the case of a corporate contract, the company contracts instead of you. But the individual bears the cost burden such as moving in and moving out. Some companies will cover the part of costs, but the treatment will vary depending on the company.
Furnished or not furnished
Some properties have furnished houses, but you should consider a contract without equipment if you don't use furniture.
|Security deposit||It is money to pay to restore the original condition when you move out. A part of the security deposit may return when restoring the original state does not carry the cost. Depending on the property, the security deposit is not necessary at the time of the contract, but the charges may be incurred when you move out.
The average cost of security deposit: 1 or 2 months of rent money
|Key money||It is the money paid to the landlord and management company as a thank-you. Although it is a thank-you, it is included in the initial cost, and basically, it does not return. Depending on the property, the key money is not necessary at the time of the first contract.
The average cost of key money: 1 or 2 months of rent money
|Real estate brokerage fee||It is the money paid to the immovable company that brokered the property.
The average cost of brokerage fee: half or one month of rent money
|House-Rent||It is the expenses incurred by renting a property.
|Common service fee/management fee||It is the cost of maintaining and managing the common parts of apartments, such as rental properties. The common elements include various places such as the condominium approach (passage from the entrance to the entrance), the lobby, stairs/elevators, corridors, and garbage storage.
The average cost of common service fee/management fee: 5% to 10% of rent
|Neighborhood association fee||This fee may occur if your residential area has a neighborhood membership.
The average cost of neighborhood association ship fee: 300 yen to 1,000 yen
|Electric bill||Charges for using electricity
The average cost of electric bill: If you live alone, the average monthly cost is about 4,000 yen.
|Water charge||Charges for using water
The average cost of water charges: The average monthly cost is about 2,000 yen if you live alone.
|Gas charges||Gas usage fee (the gas provided is one of the following two types)
City gas (primary raw material is liquefied natural gas; LNG) * Low price
The average cost of city gas charges: The average monthly cost is about 1,500 yen if you live alone.
Propane gas (primary raw material is liquefied petroleum gas; LPG) * High price
The average cost of propane gas charges: The average monthly cost is about 4,600 yen if you live alone.
|Internet charge||Internet fee: The cost of connecting to the internet. Some properties include it in house-rent.
The average cost of Internet charges: Free (included in house-rent) - Approximately 5,000 yen
|Repair cost||The cost for replacing floors and wallpaper and repairing damage and dirt so that the next resident can live.
If the security deposit is insufficient for repair, additional charges will occur. If the contract does not include a security deposit, the borrower may bear the total cost of the repair.
The average cost of repair cost: Approximately 50,000 to 80,000 yen for living alone
|Clean up cost||This cost is for the next resident to live in a cleanroom. Sometimes repair costs include clean-up costs.
The average cost of clean up cost: Approximately 15,000-40,000 yen for living alone
|Key exchange fee||The cost is for the next resident to live safely (preventing theft or trespassing due to the previous resident). The next resident pays for the key exchange fee in some contracts.
The average cost of key exchange fee: Approximately 15,000 yen to 30,000 yen
* It depends on whether you are eating out or cooking by yourself.
How to save the money
- ・Once you have decided on a monthly budget, you divide your budget weekly and spend it.
- ・Reduce eating out and cook yourself at home.
- ・You go shopping in supermarkets and choose low-priced foods, instead of going to convenience stores.
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