The Workers Rights 
The regulations governing salary deductions in Japan state that employers are not allowed to deduct housing deposits or start-up costs without obtaining the consent of the employee. This was proved in a Japanese court case where a Japanese restaurant chain selling the common Japanese food called ramen had to pay ¥1 million compensation to a Burmese employee whose first pay had been deducted illegally to nothing. For foreigners working in Japan, if you’re aware of these rules, your pay will be protected.
Quick Facts
| Detail | Info |
| Case outcome | Tokyo District Court ruled for the ~¥1 million (~$6,570) in damages that the ramen shop must pay. |
| Worker visa type | Specified Skilled Worker |
| First paycheck received | The amount is negative and has been eliminated due to deductions. |
| Total paid (first 3 months) | ~¥40,000 (~$263) |
| Illegal deductions included | The expenses of the housing deposit, key money and appliances. |
| Legal basis | The Japanese Labour Standards Act – The ‘Full Payment Rule’ |
| Damages awarded | ~¥560,000 unpaid wages + ~¥400,000 emotional distress |
What Happened
In early 2025, a 30-year-old Myanmar national arrived in Japan to take up a job at a restaurant in Tokyo specialising in the production and sale of Japanese cuisine, ramen. The salary she was getting was about ¥180,000 per month, after subtracting the standard insurance and housing allowances, which is a fair amount.
The realities were far from what they had agreed on in the contract. Her first salary was ¥0. The business had deducted her housing deposit, key money and appliance expenses without her permission. During the three-month period, she was only paid a total of ¥40,000, which is a small amount compared with what she should have been paid, and was forced out of her company accommodation and out of work.
The Tokyo District Court strongly condemned the employer, saying it had violated the Labour Standards Act of Japan because of the illegal deductions from her wages and had knowingly taken advantage of her limited ability to change her employer because of her visa type. The court termed her case “extreme” and granted her unpaid wages and damages for emotional distress.
What do the Salary Deduction Rules in Japan actually say
The enforcement system of the Labor Standards Act in Japan is the “full payment” system, which requires wages to be paid fully, on time, and directly to the worker. This is true for all workers in Japan, both Japanese and foreign.
There are only two times when deductions are legal:
- Statutory deductions: Income tax, social insurance premiums, resident tax (only for residents of the state)
- Written agreement deductions: costs outlined in a formal agreement between workers and the employer which has been signed by the employee.
If housing fees are outlined in the employment contract, they can be deducted from the ongoing income. The costs of the one-time move-in, however, are not deducted from the wages and include deposit and key money as well as appliance charges. They must be covered in a separate written contract. If they’re not paid first, it’s illegal to take them off of wages.
Key Protections for Foreign Workers in Japan
In the event of illegal deductions from your wages, you have true choices:
- Illegal deductions will not cancel your contract; you can still ask for the full amount of money that is owed.
- Complain for free at the nearest Labour Standards Inspection Office (労働基準監督署): No Japanese is required; interpreters are provided.
- Retaliation is illegal — no employer can legally fire or evict you for a wage complaint!
- As in this case, emotional distress damages are within the court’s reach, in addition to back pay.
- There are rights for specified Skilled Workers as well — you are not to be treated as leverage to deny an employer from changing your visa.
FAQs on Japan Salary Deduction
Does an employer have the power to cancel a whole payroll in Japan?
No, Japan salary deduction rules say no deductions without cause. Only deductions that are legally required or under a signed written agreement are allowed; anything more is illegal.
Which deductions are legal according to the Japanese wage rules?
Always legal: income tax, resident tax and social insurance premiums. If agreed in the contract, then it is OK to have “housing costs. Expenses for one-time move-in (deposits, key money, etc.) must be paid in accordance with a separate written agreement.
Does Japan have labour laws to protect foreign workers and Myanmar workers?
Yes. The Labour Standards Act is applicable to all workers in Japan, whether they are nationals or foreigners with a work visa. The rights to salary of foreign workers are equal to those of Japanese nationals.
What do I do if I have a salary deduction that I did not expect or it was withheld?
Collect your salary slips, job offer and bank statements. Then complain to the Labour Standards Inspection Office – they will be happy to do that, and they can make the employer pay. In the event of any necessity, civil courts may require full restitution plus damages.
Does a Specified Skilled Worker have the ability to change their employer from illegal treatment?
It is a more limited type of visa, but the restriction can’t be legally used against you. There has been a clear decision from courts that it is an employer’s error to use this limitation as a mechanism for controlling or trapping workers.
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