Interac ALT English Teacher Salary in Japan: Detailed Breakdown
As one of the most advanced countries in the world, it’s well known that Japan boasts an impressive, robust economy, and we in the West consider it to be an expensive country. However, as natives know, the cost of living in Japan is lower than the US and many other western countries in a number of aspects, making ALT salaries that much more liveable.
Find out what to expect from ALT salaries in Japan, how they’re broken down to pay for crucial services, like health insurance, pension, and much more, with Interac.
What’s the Average Salary for Teaching English in Japan?
Here at Interac, we want to ensure that, as a foreign English teacher living and working in Japan, you have enough to cover the essentials, and enjoy your time off the clock. As an Interac ALT (Assistant Language Teacher) in Japan, you will most likely receive a gross annual salary of approximately ¥2.4 ~ ¥3.0 million per year. We pay our English teacher salaries in equal monthly payments, so you’re supported throughout the year.
This translates to these approximate salaries in pounds, dollars and euros. (2024 July rates):
£12,500 – £15,630
$15,980 – $19,980
€14,810 – €18,520
The average salary for an English teacher in Japan is between ¥200,000 to ¥600,000. These salaries are more than enough to live a fulfilling lifestyle, especially if you’re living in rural Japan. Plus, it’s useful to note that a new university graduate in Japan on average nationally is paid a salary of ¥2.4 million annually, and our salary package meets or exceeds that national average.
Under our Standard Compensation System, full-year contracts will usually run from April 1st to March 31st of the following year. Typically, the first and last months are not a full month of teaching, so your English teacher salary will be adjusted to match the period covered by your contract.
What is Deducted From My Salary as an ALT?
National income tax and employment insurance is automatically deducted each month from your salary, just like most countries in the West. However, local residence taxes are not deducted from English teachers in Japan, so it’s important to keep that in mind, and factor it into your monthly finances budget and routine.
Most teachers are enrolled in Social Insurance (Shakai Hoken), which includes health insurance, nursing care insurance, and Employees’ Pension Insurance.
The total cost of these insurances is split evenly between the employer and the employee, with the employee’s portion deducted from their monthly salary. The company covers half of the total insurance cost, not half of the employee’s share.
Learn more about national income tax, employment insurance, residence tax, health insurance, and pensions in the respective sections below.
When is my English Teaching Salary Paid?
It’s natural to want to know your pay-pattern before making the jump into working full-time in Japan, so you can start your financial planning accordingly.
With Interac, your ALT 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, to make sure you’re financially covered.
With that in mind, your first salary from teaching English in Japan with Interac will be received approximately six to eight weeks after beginning work, depending on the specific date of when you started.
ALT English Teacher in Japan Salary: Key Takeaways So Far
Pens and paper at the ready – here’s what we’ve already covered:
- Salary: Between ¥2.4 – ¥3.0 million per year
- Positions: Starting year-round (most in April)
- Pay dates: 20th of the following month
- Automatically deducted expenses: National income tax and employment insurance
- Non-automatically dedicated expenses: Local residence taxes
Good-to-knows:
- Working Hours: Weekdays between 8:00am and 5:00pm
- Teaching Hours: Typically three to five 50 or 45-minute classes per day
Here’s what we’re about to cover:
- Reimbursement of commuting expenses
- National income tax
- Unemployment insurance
- Residence tax
- Health insurance
- Paid leave for Obon (summer), New Year’s holidays, national holidays
Commuting Expenses & Allowances for an ALT
Generally, all work-related transport expenses are reimbursed monthly with your salary payment.
You can also read our separate informational page about costs and living expenses in Japan.
National Income Tax – Deducted from Salary
Income tax in Japan is determined by your status of residence, source of income, and total taxable income earned, and is less than 10% of your monthly English teaching salary. 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 with the relevant tax authority for your home country.
Employment Insurance – Deducted from Salary
Employment insurance is an automatically deducted tax that every business and most individuals working in Japan are required to pay. To be eligible to pay employment insurance, individuals must work at least 20 hours per week and expect to be employed for a minimum of 31 days – ALTs fall into this eligibility bracket.
Premiums are determined as a percentage of each worker’s total wages. The current insurance premium rate is 1.55%, with employers contributing 0.95% and employees contributing 0.6%.
Money collected via employment insurance is used to support the unemployed, distributed through a government benefit scheme called ‘unemployment insurance’.
Unemployment insurance is managed by the Japanese Ministry of Health, Labour and Welfare. It serves as a safety net for workers in Japan who become unemployed, be it through redundancy, dismissal, or quitting a job without another position lined up.
Learn more about employment and unemployment insurance.
Residence Tax
You are required to pay residence tax if you have been living or plan to live in Japan for more than one year.
Foreign residents with a domicile in Japan as of January 1st, and who receive a certain amount of income, are required to pay taxes to the municipality where they reside. The salary of a foreign English teacher (Assistant Language Teacher) qualifies them to pay residence tax.
As an ALT, standing as a cultural ambassador in Japan, you are responsible for setting money aside and paying the residence tax, as we usually do not deduct it from your salary. Each year, you pay the tax to the municipality where you were/are living in on the 1st of January. Later in the year, approximately around June, you will receive a booklet of payment slips from your municipality that can be paid at your local convenience store.
If you are moving out of Japan before receiving the payment slips, talk with your local tax office about how to pay that year’s taxes before you move.
Health Insurance & Pension – Deducted from Salary
All people living in Japan are required to be enrolled in a Japanese government-approved health insurance program. For persons working over a certain numbers of hours per week and making over certain income thresholds, the Employee’s Health and Pension system (known as “Shakai Hoken” 社会保険) is the typical system to be enrolled in. Most of our full-time instructors will be enrolled in this system.
The Employee’s Health and Pension system consists of several parts:
- Health insurance
- Pension
- Unemployment insurance
- Disability insurance
- Nursing insurance (for persons age 40+)
Premiums are calculated based on annual income and the portion paid by the employee is deducted from salary. The employer will also contribute by matching the employee’s payments.
Pension payments can be refunded up to a certain amount upon leaving Japan. For more information about the pension system, see our blog article about Healthcare in Japan for Foreigners and separate blog post about pensions in Japan.
Contact us
Do you have more questions about the salary for English teachers in Japan? That’s to be expected, and our team is happy to help. Contact us for more information about our latest roles, or find out more about the role of an ALT in Japan, and visit our blog to discover more about Japanese culture, life in Japan, and our top-tips.
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