Gakumen literally means "face amount", the figure written on the instrument. Applied to pay, it is the total before deductions: base salary, allowances, overtime and, for an annual figure, bonuses. When a Japanese candidate says their nenshu is 12 million yen, that is gakumen. Offer letters, labour conditions notices and job advertisements state gross figures too.
The term matters mostly because it distinguishes gross from net. Japanese employees are sharply aware of the gap, because social insurance alone takes about 14.7% of pay below the contribution caps in Tokyo in fiscal 2026, and income tax and inhabitant tax take more as pay rises. On salaries of around 5 to 10 million yen, take-home pay is roughly 70% to 80% of gross; for senior people with high marginal tax rates, the share is lower.
Two questions follow whenever someone quotes a gakumen figure: what it includes, and what period it covers. Monthly gakumen usually means base plus fixed allowances, sometimes with average overtime. Annual gakumen may or may not include the bonus, and almost never includes the employer's own social insurance contributions, equity or the value of company housing.
What it means for a foreign employer
- Always confirm the basis. Ask whether a figure is gakumen or tedori, monthly or annual, and with or without bonus and overtime. Misunderstandings here cause late-stage offer failures.
- Quote your offer gross, in Japanese terms. State the monthly base and annual gross in yen alongside your global format, so the candidate compares like with like.
- Do not net-to-gross on the candidate's behalf. Comparing a Japanese gakumen with an overseas gross ignores different tax and social insurance burdens. For relocation offers, model both sides properly.
- Gross includes things you may not pay. A Japanese candidate's gakumen can include overtime, family or housing allowances that your structure lacks.
Sources
- Pay convention.
- Labour Standards Act, Article 15 (written terms on wages).
- Japan Health Insurance Association and Japan Pension Service, fiscal 2026 contribution rates.