Japan Tax and Social Security Burden Remains High at 47.5%

Japan's Finance Ministry says the country's workers and companies are expected to spend 47.5 percent of their income on taxes and social security in the current fiscal year.

The ministry on Tuesday announced the national burden ratio for fiscal 2022, which ends next month. The ratio is used to compare Japan's public burden to those of other countries.

The latest figure is down 0.6 points from the record high in fiscal 2021, as improved corporate performance resulted in more pay for workers, despite higher social insurance costs due to aging of Japan's population.

But the ratio is the third-highest ever, and workers and companies are still paying out nearly half of their income.
Officials say the ratio is expected to drop in fiscal 2023 by another 0.7 points, to 46.8 percent, as they expect national income to grow.

The rate was 35 percent in fiscal 2002, but has been over 40 percent since 2013.

In 2020, among the 36 OECD member nations with comparable data available, Japan's 47.9 percent ranked 22nd. Luxembourg topped the list with 84.6 percent, followed by France at 69.9 percent and Denmark's 65.9 percent.

Source: https://www3.nhk.or.jp/nhkworld/en/news/20230221_37/