Annual income limits for a part-time working house-wife of Japan

Being a dependent and working part-time will create great confusions when considering the annual income. This is not only applicable to dependent visa holders or foreigners in Japan but also to every Japanese who are having a dependent status. If the wife of a full-time employee(either Japan nationals/ permanent residents or working visa holders) is a housewife, she will be considered as a dependent. In such cases, the head of the family(husband/ father who is a full-time employee) will be having relaxations in the income tax considering the number of dependents under him. Also, he will be paying for the social insurance(health insurance and welfare pension) for all his dependents. Once these dependents start earning, they will be removed from the dependent list of the family head. So that his annual income increases which lead him to pay more income tax based on the rise in his income. Also, the part-time worker has to pay his/her income tax and social insurance by himself which is decided by his /her annual income.

There are many things you have to consider while working part-time, especially about the annual income limit. There are no restrictions on the amount you can earn as a part-time employee. But, once you started earning more, you will be levied with taxes and you have to take care of your social insurance etc. which will, of course, affect your overall family earnings. There are many set levels called “Income Walls”(収入の壁 – Shuunyuu no Kabe) which are decided by the Japanese government. In every year, new walls may be added or there may occur slight changes in the amount considered in every stage.

For those foreign part-time workers in Japan, who are having a dependent or spousal visa status may also consider at least these three walls of the annual income to be in the safe zone of taxes and other payments that affect your overall family earning.

Annual income:-

1.If exceeds 1 million(100万) yen: If the annual income of a part-time worker exceeds 100,0000 yen, you should pay the residence tax (住民税 – jyuumin zei) by yourselves. In some areas, there are other walls less than 100 man yen above which you have to pay regional inhabitant taxes.

2.If Exceeds 103,0000 yen(commuting expense excluded)

Income tax is charged on every 103,0000 yen you are earning annually. If you work part-time and your annual income exceeds 103,0000 yen, you must pay the income tax for what you are earning. At the same time, the head of the family must have to pay an extra amount as income tax(所得税- shotoku zei), because of the exemption of spousal deduction.

Travel expense is not considered as your income and hence it is not considered while calculating the income tax.

3. If Exceeds 130,0000 yen(includes commuting charge paid by the company)

If your annual income exceeds 130,0000 yen, then you will go out of the dependency circle of the head of your family. So, you have to pay your social insurance (社会保険- shakai hoken) that includes Health insurance, unemployment insurance and welfare pension. Once you started earing more than 130,0000 yen a year, you will be removed from the dependency of your husband/ father. This will result in a hike in his annual income which results in him paying an extra amount as income tax and all.

Even the travel expense is considered while calculating this amount. So your annual income including the travel expense if paid by the company will be taken into consideration while calculating this. For those part-time workers with a long commuting distance should consider reducing your working days and work more hours on the working days is a nice idea to reduce the commuting charge.

There are yet other walls decided for part-time workers of Japan. Being a foreigner working part-time, these are the three main income limits to be taken care of. For further details about the other limits and tax amounts, please read this article.

Unemployment insurance(雇用保険: kouyou hoken) working hour limit

You may become part of an unemployment insurance scheme(which is also part of the social insurance) if you are enrolled in a Japanese company. In the case you are losing your current job,  you will get a small monthly payment from the Japanese government until you find your next job. But, in order to become part of this insurance scheme, you must work for a minimum of 20 hours a week. A one-time enrollment is enough for a lifetime unemployment insurance scheme membership.

For details about the amount to be paid as tax and social insurance, please read this article.