Payroll in Japan Calculator - Commuting Allowance

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The Commuting Allowance Calculator compares the benefit of receiving commuting allowance separately, to being paid as part of salary.

Commuting Allowance is usually paid in Japan and has tax savings to the employee. Commuting via bus/trains is non-taxable up to a maximum amount of JPY150,000 per month but commuting via car/bicyle is subjected to a taxable limit, which varies with commuting distance.

HTM's payroll service includes the computation and payment of Commuting Allowance.

			English Japanese
Commuting via train/bus is non-taxable up to a limit of JPY150,000. Commuting via car/bicycle has a non-taxable limit of allowance which varies with the commuting distance			Train / Bus Car / Bicycle
Only applicable for commuting by car/bicycle
The greater the number of dependents, the lesser the national tax withholding and inhabitant tax amount
Employees aged 39 or below are not applicable for long-term insurance. Employees aged 65 or older are not applicable for long-term care insurance			39 and younger Between 40 and 64 65 and older
Different prefectures have different health insurance rates			Akita Aomori Chiba Ehime Fukui Fukuoka Fukushima Gifu Gunma Hiroshima Hokkaido Hyogo Ibaraki Ishikawa Iwate Kagawa Kagoshima Kanagawa Kouchi Kumamoto Kyoto Mie Miyagi Miyazaki Nagano Nagasaki Nara Niigata Oita Okayama Okinawa Osaka Saga Saitama Shiga Shimane Shizuoka Tochigi Tokushima Tokyo Tottori Toyama Wakayama Yamagata Yamaguchi Yamanashi Source
Type of industry affects long-term care insurance and employment insurance rates. Insurance rates are higher in a work industry that entails higher risk			General Agriculture, Forestry, Fishery, Sake Construction Industry
Specification of industry with higher risk will command a higher accident insurance rate			Building Construction Chemical Cleaning, Cremation and Slaughter House Electrical Equipment Manufacturing Farming and Fishing (Excluding Surface Fishing) Finance, Insurance and Real Estate Food Manufacturing Freight Operations Machine Assembly and Setup Machine Manufacturing (Excluding Electrical, Optomechanical) Media and Publishing Metal and Non-Metal Mining Metal Manufacturing and Processing Non-Metal Smelting Oil and Natural Gas Mining Other Construction Other Industry Other Manufacturing Other Mining Quarrying Shipbuilding and Repair Textile Transportation Warehousing, Security and Pest Control Wholesale Trade, Retail Trade, Restaurant and Lodging
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Pension insurance is paid in lieu of pensions paid to people aged 65 and above. The rate is 17.828% as of September 2015 and it is borne 50/50 by the employee and the company
Health insurance entitles employees to only 30% of the payment of usage of medical facilities in Japan. The rate varies slightly with prefecture and is approximately 10%. Costs are borne 50/50 by the employee and the company
Long-term care insurance is necessary for the support of the independent lives of citizens who require living assistance due to aging-related diseases. The rate is 1.58% as of April 2015 and it is borne 50/50 by the employee and the company
Employment insurance provides benefits to employees if they become unemployed. It varies with the type of industry and is borne by both the employee and company
Earned income deduction is a deduction from employment income when calculating income and local taxes. It is based on the total income amount
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Child Care Insurance is the contribution to the government child care program and borne only by the company
Accident Insurance for work related inury is borne only by the company
Asbestos Insurance is the contribution to government relief efforts for asbestos victims and borne only by the company

These payroll calculators are not intended nor are they a substitute for professional advice. These payroll calculations are complex and qualified professional payroll advice should be obtained prior to taking any action.