As an Interac ALT, you will most likely receive a gross annual salary of approximately ￥2.4 – ￥2.7 million per year. Under our Standard Compensation System, full-year contracts will usually run from April 1st to March 31st of the following year. Salaries are paid in equal monthly payments, Typically, the first and last months are not a full month of teaching, so your salary will be adjusted accordingly. National income tax and employment insurance is automatically deducted each month; however, local residence taxes and health insurance are not. National income tax is less than 10% of your monthly salary.
Your salary is deposited into your bank account on the 20th of the following month. For example, your April salary is paid on May 20th. When payday falls on a weekend or national holiday, the salary is deposited into the account on the preceding business day. Depending on the starting date, your first salary will be received approximately six to eight weeks after the start of employment.
You will need to open a Japan Post Bank account when you begin working for Interac. Opening this account is especially important to do when you first arrive as it may take our payroll department some time to register your details in our system. Everything you need to open your bank account will be provided to you during initial orientation and training.
Generally, all work-related transport expenses are reimbursed monthly with your salary payment. This does not include flights to or from your home country.
In some cases, depending on where you are living and working, as well as the type of position, an allowance may also be paid.
Income and Consumption Tax
In Japan, the main types of taxes you will have to pay are income tax and residence tax. An 8% consumption tax is charged on all purchases, although this is usually included in the price shown. If not, companies are required to clearly disclose this. There are also taxes for owning cars and property, but these rarely impact Interac ALTs.
Income tax in Japan is determined by your status of residence, source of income, and total taxable income earned. It will be automatically deducted from your salary on the basis of expected earnings. For information regarding tax responsibilities in your home country while you are living and working in Japan, please check the websites and contact the relevant tax authority for your home country.
You are required to pay residence tax if you have been living or plan to live in Japan for more than one year. Therefore, if you are employed by a company, you will be required to pay. You should pay tax to the municipality in which you were living in on the 1st of January. You are responsible for paying the residence tax, so we do not deduct it from your salary.
All people living and working in Japan are required to be enrolled in a Japanese government approved health insurance program. In most cases, you will need to be enrolled in Japan’s National Health Insurance (NHI) system, to which you are responsible for enrolling in and making payment. NHI affords you comprehensive coverage in the event of illness or injury. In most cases, 70% of the medical expenses will be covered by NHI, with the remaining 30% falling to you to cover. In your first year, premiums could be as low as 3,000 yen per calendar month. In the second and subsequent years of employment it is likely that this fee will increase as it is based on your level of income in the previous year. More details about NHI will be made available and explained to you during the recruiting process.
In some cases, an Interac ALT is required to be enrolled in Japan’s Social Insurance (SI), rather than in National Health Insurance. The structure of SI is a little different to NHI and the monthly premium is different than that of NHI. If this is applicable to you, you will be notified of the details when you are offered your placement.
We strongly advise all new Interac ALTs, prior to arriving in Japan, to consider purchasing a life insurance policy that makes provision in the event you die as a result of an accident or illness in Japan. The cost to prepare and transport your body, mortal remains, or cremains to your home country, as well as a funeral can be in excess of US$50,000 / GB£35,000. If you are uninsured the burden on this cost will fall upon your family.
This affords you insurance cover in the unlikely event you are made unemployed while under contract with Interac. You can expect to have around 1,500 yen per calendar month deducted from your salary to cover this.
You are encouraged to consider your insurance requirements over and above the insurance types mentioned on this page. Such consideration should be given to insuring household items, such as furnishings and electronics, and travel insurance for your journey to and eventually from Japan as well as any other travel you may do. NHI or additional health insurance purchased in Japan does not routinely cover you if you become ill or have an accident outside of Japan, unless it is clearly stated in the policy document.