Calculate take-home pay from an office worker's face value monthly salary! Easy explanation of social insurance premiums and tax system

1. I sympathize with this concern: I look at my pay slip and am shocked at how little my take-home pay is.

I was happy when I heard that my monthly salary was 300,000 yen when I got a job or changed jobs, but when I looked at my pay slip, the take-home pay that had been transferred to my account was just under 240,000 yen...''

When I look at the various items listed in the deduction'' section of my statement, such as health insurance, welfare pension, income tax, and resident tax, I am confused as to why they are being deducted so much...''

“I would like to know in advance exactly how much my take-home pay will be in order to plan my future savings and living expenses.”

Many people are surprised and have doubts about the large gap between their face value salary and their actual take-home pay. We tend to use the face value as our standard on a daily basis, but the money that can actually be used for living or savings is the money after various deductions have been made.

• --

2. Explanation of the cause: The identity and mechanism of “deduction items” deducted from salary

Why is a large sum of about 20% to 25% of the face value salary deducted every month? The breakdown can be broadly divided into two categories: "social insurance premiums" and "taxes."

① Social insurance premiums (costs for the future and for emergencies)

• Health insurance premium:

This insurance allows you to receive medical care such as paying 30% of your medical expenses at hospitals. For those over 40 years old, nursing care insurance premiums will be added.

• Employee pension insurance premium:

This is a savings for retirement pension. It is determined based on the average salary (standard monthly remuneration) for the three months from April to June of each year, and the company and the individual pay the cost equally (about 9.15% out of pocket).

• Employment insurance premium:

This is the source of funds for unemployment benefits and childcare leave benefits. A certain percentage is deducted from the total monthly payment amount.

② Taxes (costs paid to the country or local government)

• Income tax:

National tax levied on income for the year. Withholding tax (tentative estimate)'' is deducted from your salary every month, and it is corrected in the year-end adjustment'' in December to reflect life insurance and dependent deductions.

• Resident tax:

This is a local tax that you pay to the municipality where you live. Unlike income tax, it is a deferred payment method in which the tax amount calculated on the previous year's income is deducted from June of the following year. As a result, a phenomenon occurs in which in your second year as a working adult, your take-home pay decreases because your residence tax begins to be deducted.''

• --

3． Solve with tools: Visualize future designs with ZeroTools' take-home simulator

"I don't know the detailed calculation formula for my pay slip, but I want to know instantly how much will be deducted from my face value salary and how much will be my take-home pay..."

Our site's Take-home pay/salary-tax-simulator clearly visualizes the numbers you want to know with graphs.

Using this simulator, you can instantly calculate a precise guideline for your take-home pay that takes into account your age and family structure.

Simulation procedure

1. Open the Take-home pay/Salary-tax-simulator page.

2. Select "Office employee" mode.

3. Enter the face value "monthly salary" and expected "bonus".

4. Enter your age (over or under 40), marital status, and number of dependent children (spousal deduction and dependent deduction will be automatically calculated).

5. The breakdown of each social insurance premium, estimated income tax, resident tax, and final "annual take-home pay" are instantly displayed in graphs and tables.

Please use it to plan your future finances and consider salary conditions when changing jobs.