Employees' Pension Insurance contributions

Your EPI contribution amounts are calculated by applying the contribution rate to your monthly salaries (Standard Monthly Remuneration, SMR*) and your bonuses (Standard Bonus Amount, SBA**); the amounts of payment contributions are evenly shared by you (worker) and your employer.
Your employer must deduct contribution from your monthly salaries and bonuses, and then pay the contribution (together with those paid by the employer) by due date***

Contribution amount for regular months (without bonus payment) =

Your SMR* × Contribution rate ****

Contribution amount for bonus months (regular salary + bonus) =

Your SMR* × Contribution rate **** + Your SBA** × Contribution rate****

* Standard Monthly Remuneration, SMR (monthly amount of pensionable remuneration)

The Standard Monthly Remuneration serves as the basis for calculating the benefits and insurance contributions for EPI / EHI. Your actual remuneration paid by the employer is classified into the prescribed remuneration table, and your SMR is determined. Your remuneration includes every payment such as salary, wage and any allowance which you receive from your employer in return of your work. However, the bonus and such received at intervals of more than 3 months are excluded.

** Standard Bonus Amount, SBA

The Standard Bonus Amount is the amount of bonus you receive from your employer at intervals of more than 3 months, rounded down to the nearest ￥1,000. The maximum of the SBA for the purpose of contribution calculation under EHI is ￥5.73 million in total of bonus payments in one fiscal year (from April 1 to March 31.) The maximum SBA under EPI is ￥1.5 million per month.

*** Due date (of monthly contribution payment)

Contribution for a certain month must be paid by the last day of the following month. If the last day of a month is a holiday, the due date is the first business day after the holiday, e.g. contribution for April must be paid by May 31.

**** Contribution rate

Contribution rates are specified separately for EPI and EHI.

Note: When you take maternity leave or childcare leave, both you and your employer may be exempt from contribution payments upon application.