You are employed with 250,000 yen of salary per month.
Now it is your first pay day. You go to ATM and check your salary. You receive 242,350 yen.
You open your salary slip and find out that 1,250 yen of unemployment insurance premium and 6,400 yen of national withholding tax are deducted from your salary.
You will probably say, "OK, that's fine," and close your salary slip.
On the next pay day, at the ATM to check your salary, you must be freezed. Only 209,294 yen is paid into your back account.
You open your salary slip, and find out that Health Insurance Premium (12,961 yen) and Pension Premium (21,335 yen) are deducted.
You will probably say, "I do not need pension from the Japanese government. I want my money baaaaack."
First of all, is it legal to deduct social securities without employees' permission?
The answer is simple. "Yes"
Or rather, the employer is OBLIGED to offer employees social securites regardless of employees intention.
You may say, "Wait a minute. A friend of mine does not get any social securites deduction..."
There are three possibilities.
1) Most probably employed by a law-breaking employer
Some small companies do not offer social securites at all to employees. Of cours, this is ILLEGAL.
Some companies, strongly protested by employees, give up offering some employees social securites. This is also illegal.
2) If you join the social securites system of Germany, United Kingdom, Korea, United States, Belgium, France, Canada, Australia, Netherlands, or Czech Republic, etcl, you are exempted from joining Japanese pension system due to mutual agreement between countries. Even in this case, you have to join the Japanese health insrance system.
3) Working as subcontractor
If you are an independent subcontractor (not an employee), your client (or company you work for) is not responsible for your social securities.
No.3 case is called "Giso Ukeoi (or fake subcontract)" and it is a social problem in Japan. You will lose all the rights as employee such as paid vacation, one-month release notice, etc.
You are persuaded by your employer about social securites as you have no other choice...
One year later, in June, when you check your salary, you almost faint away. You receive less than 200,000 yen.
"What the hell this !", you open your salary slip, "My gross salary is 250,000 yen. This must be a mistake."
You will find a new deduction item "Local Tax", 13,000 yen.
In Japan, local tax deduction starts from June of the next year of employment.
As this locat tax is calculated based on the previous year's income, you have to pay even if you lose job.
In addition, you need to submit a local tax certificate for your visa extension. You have no other choice than paying....
Do you want to go back to your home country?
You can download Salary Simulator and Local Tax Simulator from here.
Please note that salary simulator gives rather accurate figures while local tax calculation gives you only a rough idea. Local taxes vary depending on your address and situations