Recently, Japan's Ministry of Health, Labor and Welfare announced a new policy to implement stricter measures for foreigners in Japan to participate in public pension insurance, and plans to promote the procedures for all new foreigners to Japan to join public pension insurance in October.
Although foreigners living in Japan are now also obligated to join the pension, there are still many foreigners who have not completed the procedures after entering Japan and have not been enrolled.
Japan's pension, also known as "pension", is divided into two types: "national pension" and "employees' pension", each of which is aimed at a different group of people.
The National Pension is applicable to those who have no income or are self-employed, and the fixed monthly payment amount in 2024 is 16,980 yen (about 1,120 yuan), in principle, Japanese citizens aged 20-60 and foreigners with long-term visas must join, and must pay for 10 years; The Employees' Pension is available to those who work for a local company in Japan, and the amount of contributions is based on the individual's income.
According to the results of the 2019 survey on the participation of public pensions, the proportion of foreigners (20~59 years old) living in Japan who did not participate in the pension was as high as 4.4%, which is much higher than the 0.1% of Japanese people of the same age. Some of them, such as international students, self-employed workers, and technical intern trainees working at firms that do not apply the Employees' Pension, are unable to join the pension system in a timely manner due to various reasons.
The Ministry of Health, Labour and Welfare will revise the system of Japanese pension institutions with the aim of making Japanese pension institutions aware of the information of those who have recently transferred to Japan. For those who are unable to confirm their eligibility for the old-age pension, they will be required to enroll in the National Pension Insurance by written notice.
If a foreigner does not respond to the policy for a certain period of time, the Japanese pension institution will use the authority of the pension institution to force the foreigner to join. If you do not join, you will not be able to receive a pension after the age of 65 or a disability pension in the event of injury.
Seeing the introduction of the latest policies, and then looking at the various lists of rising taxes and social insurance premiums that have just been received, some netizens began to count their annual income.
So, how much is the "real income" that a person earns 10 million yen a year can actually have at their disposal after deducting taxes, health insurance, and pensions?
1
How many people in Japan earn more than 10 million a year?
According to the "Reiwa 4th Private Wage Survey Statistical Survey" conducted by the National Tax Agency's official housing and housing division, the annual income distribution of wage earners in Japan is as follows:
As can be seen from the chart, 5.4% of wage earners earn more than 10 million yen a year. In other words, almost 1 in 20 salaried workers reach this level of income. In addition, men account for a large proportion of people with an annual income of more than 10 million, and the proportion of women is very low.
Therefore, the number of high-income earners in Japan with an annual income of more than 10 million yen is not very large, but what kind of occupations are these people who earn 10 million yen a year?
The first is airline pilots, with an average annual income of 16 million yen (about 780,000 yuan);
the second is doctors, with an average annual income of 14.28 million yen (about 700,000 yuan);
The third is a university professor, with an average annual income of 10.65 million yen (about 520,000 yuan).
2
How much does a person with an annual income of 10 million "earn at hand"?
As mentioned earlier, you have to pay health insurance, resident tax, and pension when you live in Japan. Depending on whether or not income tax reduction and tax saving policies apply, an annual income of 10 million yen will result in an annual income of between 7 million yen and 8 million yen.
Annual income of 10 million yen is subject to tax amount
Taking into account the difference in the amount of various deductions such as spousal deduction and dependency deduction, even if the annual income is the same, it is basically less than that of a family with two or more dependents.
If the annual income reaches 10 million yen, the income tax will be increased at first, and the income tax will be increased to 5% for the annual income of 5 million yen, but the income tax will be increased to 20% for the annual income of 10 million yen.
In other respects, the impact on single people is smaller, but for families with children, the child's allowance will be reduced by at least 60,000 yen per year while the income increases, and the child's schooling is not covered by the "free high school tuition" of about 120,000 yen per year, which is another additional expense.
In Japan, the higher the annual income, the higher the tax and social insurance costs. Therefore, even if they earn tens of millions a year, they do not feel that they are rich. Some people who earn more than 10 million a year are still unable to live a luxurious life in Japan.
3
How much can a person with an annual income of 10 million receive every month after the age of 65?
As a general rule, if you have an annual income of 10 million yen, you will receive an annual pension of about 2,488,000 yen (778,000 yen for the basic old-age pension + 1,710,000 yen for the old-age employees' pension).
The formula for calculating the old-age pension is: 650,000 yen× (5.4 81/1,000) ×480 months = 1,717,200 yen.
Therefore, a person with an annual income of 10 million yen will receive about 207,000 yen per month after retirement at the age of 65.
As the number of foreigners in Japan continues to increase, the management of foreigners in Japan has become stricter. Japanese Prime Minister Kishida has also previously said that the Japanese government will cancel the permanent residence status of permanent residents who are viciously in arrears of taxes. I would like to remind all of you in Japan to pay taxes and annuities on time to avoid unnecessary trouble when renewing your visa.