Total Labor Cost Simulator
About this calculation
Total labour cost is salary and bonus plus the employer's statutory contributions (health, nursing, pension, employment insurance, workers' compensation, child-rearing levy). Looking only at gross salary understates the true cost by 10–20%.
How it is calculated
- Employer health insurance = Kyokai Kenpo prefectural rate (FY2026) × standard remuneration; add nursing insurance (employer 0.81%) from age 40.
- Add the employer's pension contribution (9.15%); bonuses are capped at ¥1.5M per payment.
- Add employment insurance (employer 0.9%), workers' compensation (general industry 0.3%) and the child-rearing levy (0.36%, employer only).
- Salary and bonus plus all of the above is the annual total labour cost.
Statutory basis (e-Gov)
- 健康保険法 第160条 — Health (incl. nursing) insurance rate
e-Gov
last amended 2026-06-05
- 厚生年金保険法 第81条 — Pension insurance rate (18.3%)
e-Gov
last amended 2024-06-14
- 労働保険の保険料の徴収等に関する法律 第12条 — Workers' comp & employment insurance rates
e-Gov
last amended 2024-05-17
- 子ども・子育て支援法 第70条 — Child-rearing contribution (employer only)
e-Gov
last amended 2025-04-25
Frequently asked questions
Roughly what share of salary does the employer pay in social insurance?
With this tool's rates — health (~5% depending on prefecture) + pension 9.15% + employment 0.9% + workers' comp 0.3% + child levy 0.36% — roughly 15–16% of salary (plus 0.81% nursing from age 40).
Is social insurance charged on bonuses?
Yes — the same rates apply to the standard bonus amount, capped at ¥5.73M/year for health and ¥1.5M per payment for pension.
Is the workers' compensation rate the same for every industry?
No — it is set per industry. This tool assumes the 0.3% rate for 'other businesses'; construction and manufacturing are higher.
Published by: 心享勢成株式会社（SEISEI INC.） ·
Last updated: 2026-09-12 ·
Tax year: 令和8年度（2026年度） ·
About the publisher
本ツールは一般的な税制情報に基づく概算シミュレーションです。個別の税額計算・申告・税務相談は提携税理士が承ります。算出結果は法的助言ではなく、参考値としてご利用ください。