In Japan, your employer is legally required to deduct certain items from your salary such as income tax, company insurance (pension, health insurance) and employment insurance. However, sometimes there are other deductions that may or may not appear on your payslip depending on your workplace. Some employers may have an agreement to deduct other expenses such as company housing, loans or even union dues. Unexpected, unexplained, and unlisted deductions can be confusing, so it’s important to understand what to expect. Let’s look at a few cases of surprise deductions.
Why are you taking my money?!
Jennifer* always diligently checks her payslips. It is easy enough as they almost never fluctuate. However, she noticed a sudden decrease in her income in early spring. It wasn’t a lot, but she wondered how could that be? Upon closer inspection, she found the culprit: “Care Insurance”. This was suddenly being deducted with no explanation from her company. She contacted them immediately to ask about this deduction and was informed that it’s a legal deduction with no further explanation. Not feeling secure in that answer, she then consulted with the union and was informed that it was in fact a legal deduction.
So what is “Care Insurance” and why did it appear? Workplaces may translate it in many ways, but the official name is Kaigo Hoken (介護保険). It’s an additional social insurance premium that is automatically deducted from your salary once you turn 40 years old to fund elderly care and services for specified diseases. It is calculated based on your salary and, like health insurance, the burden is split 50/50 with your employer.
Jennifer’s thoughts: “Even though it is legal, it would have been nice for the company to explain it to me prior to the deduction.”
We recognize that each workplace is unique and may have different agreements in place. If you have questions about your payslip, ask for a consultation by filling out the form here: https://generalunion.org/consult/
*Name has been changed to protect privacy