💼 Japan Employees' Pension Premium Calculator
Calculate your Japan Employees' Pension (厚生年金) insurance premium from your standard monthly remuneration and bonuses. The 2026 contribution rate is 18.30%, shared equally by you and your employer.
What is this tool?
The Employees' Pension Insurance (厚生年金保険, Kōsei Nenkin Hoken) is Japan's earnings-related second-tier pension, covering company employees and public servants alongside the flat National Pension. It is funded by insurance premiums calculated from your 標準報酬月額 (standard monthly remuneration) — the bracketed amount your employer reports based on your salary — plus your 標準賞与額 (standard bonus). The contribution rate has been gradually raised and stands at 18.30% for FY2026 (令和8年度), with the cost split exactly in half: 9.15% borne by the employee (deducted from salary) and 9.15% by the employer. Bonuses are also subject to the same rate, up to a monthly bonus ceiling of ¥1,500,000. The standard remuneration scale runs from Grade 1 (¥88,000 and below) to Grade 32 (¥650,000 and above as of the 2025 revision). Because both you and your employer pay, the total cost to the employment relationship is 18.30% of salary plus bonuses. To see what this funds, use our public pension estimator, and for the medical side of payroll insurance see the health insurance rate tool.
How it works
The premium is the standard monthly remuneration multiplied by the 18.30% rate, then split equally. Bonuses are added at the same rate up to the ¥1,500,000 monthly ceiling. The employee and employer each pay exactly half of every component.
| Component | Basis | Rate (2026) | Employee | Employer |
|---|
Employees’ Pension insurance premium (FY2026) The 18.300% rate has been fixed since 2017 (the legal ceiling). It is deducted from salary together with health insurance.
| Item | Rate | Paid by |
|---|---|---|
| Employees’ Pension insurance premium | 18.300% | Employee 9.150% + Employer 9.150% |
| Applies to | Monthly salary + bonuses (each bonus up to ¥1,500,000) | — |
| Standard remuneration ceiling (Grade 32) | ¥650,000 / month | — |
| --- | --- | --- | --- | --- |
|---|
| Salary | 標準報酬月額 | 18.30% | 9.15% | 9.15% |
|---|
| Bonus | up to ¥1.5M/month | 18.30% | 9.15% | 9.15% |
|---|
How to use
- Enter your standard monthly remuneration (標準報酬月額) in 万円, or your rough monthly salary.
- Optionally enter your average monthly bonus in 万円 (capped at ¥1.5M).
- Click Calculate to see the total, employee, and employer premiums.
- Compare with your payslip to confirm your grade.
Frequently Asked Questions
What is the 2026 Employees' Pension contribution rate?
The rate is 18.30% for FY2026, split equally: 9.15% paid by the employee and 9.15% by the employer. It has been phased up gradually and is now at its scheduled long-term level.
Are bonuses included in the premium?
Yes. Bonuses are subject to the same 18.30% rate, but only up to a monthly bonus ceiling of ¥1,500,000. Amounts above that per month are exempt.
What is 標準報酬月額?
It is the bracketed "standard monthly remuneration" your employer reports to the pension office based on your salary. It ranges from Grade 1 (¥88,000 and below) to Grade 32 (¥650,000 and above), so your premium follows grade brackets rather than exact pay.
Does the employer really pay half?
Yes. The 18.30% total is split 9.15% / 9.15% between employee and employer. The employer's share is an additional labor cost on top of your gross salary.
Is the premium tax-deductible?
The employee's share is deducted from salary before income tax, reducing taxable income. It is not an itemized deduction but lowers your tax base.
This tool is for informational purposes only and does not constitute financial advice. Consult a qualified financial professional for advice specific to your situation.
Tips & Advice
Your 標準報酬月額 is set by brackets, not your exact pay, so a raise that stays within the same grade does not change your premium — but crossing a bracket boundary does. Employers bear half, so the true labor cost of your salary is about 9.15% higher than your gross from the company's side. The premium is deducted pre-tax, which slightly lowers your taxable income. If you are also paying health insurance premiums (roughly another 5% each), total statutory social-insurance deductions can approach 14% of salary plus bonuses — a meaningful slice of take-home pay that our gross-to-net calculator (Batch C) helps model. Watch the bonus ceiling: bonuses above ¥1,500,000 per month are exempt from pension premiums.
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Sources & References
Last reviewed: August 2026.
- Japan Pension Service — Japan Pension Service — Employees’ Pension Insurance (Kosei Nenkin).
- Ministry of Health, Labour and Welfare — Ministry of Health, Labour and Welfare — pension system.
Limitations
Disclaimer: This tool estimates premiums from a representative 18.30% rate and your entered remuneration. Actual premiums depend on your exact 標準報酬 grade, bonus timing, and any applicable exemptions. It is not official tax or pension advice — confirm figures on your payslip or with the Japan Pension Service.