Japan Highly Skilled Professional Visa: Pitfalls in “Annual Income” Points and Bonus Criteria

This article is written by a Japanese local.

The “Highly Skilled Professional (HSP)” visa allows you to obtain Permanent Residency in Japan in as little as one or three years. The absolute requirement for this highly attractive status for global elites is to score 70 points or more in a points calculation based on academic background, work experience, age, and annual income.

However, the item with the highest risk of denial in this calculation is “Annual Income.” Many applicants mistakenly assume, “My current salary easily clears the points,” only to have their points slashed by Immigration’s strict screening, resulting in their total dropping below 70 and their application being denied.

This article explains the correct definition of “Annual Income” for the HSP visa, the clear boundary between allowances that can be included and those that are excluded, and the legal approach to structuring your employment contract to pass the screening with objective evidence.

1. The Biggest Misunderstanding: “Future Expected Income,” Not “Past Income”

[Summary] Immigration evaluates only the “guaranteed remuneration to be paid by your Japanese host organization over the next year.” Past income from your home country or previous jobs counts for zero.

Many people mistakenly believe that the annual income for the points calculation refers to the “gross amount on their most recent tax withholding slip” or “the salary from their previous job.” This is a fatal error.

Under Japanese Immigration law, the only income evaluated for HSP points is the “expected amount of remuneration to be paid during the upcoming year by the host organization (company) in Japan.” Even if you earned 10 million JPY in the past at a foreign company, if the contractual base salary at your new Japanese company is 5 million JPY, the amount subject to the points calculation is strictly “5 million JPY.”

2. The Clear Wall Between Included and “Excluded” Allowances

[Summary] Reimbursements such as commuting, housing, and dependent allowances, as well as variable overtime pay, are strictly excluded from the annual income calculation.

The “Total Payment” listed on a company payslip is not accepted as your annual income. Immigration law strictly distinguishes between items that can be “included” as remuneration and those that must be “excluded.” A mistake here leads to immediate denial.

• [Excluded Allowances] Items that must NEVER be calculated:
  Commuting allowances, dependent allowances, housing allowances, separation allowances, and standard variable overtime pay are completely excluded. These are viewed as reimbursements for actual expenses rather than compensation for labor. If you rely on these to barely reach 70 points, Immigration will deduct them and reject your application.
• [Included Allowances] Items recognized for points:
  In addition to the base salary, “fixed monthly payments” that are compensation for labor, such as managerial allowances or professional qualification allowances, can be included. “Fixed overtime pay” (minashi-zangyodai) can also be included ONLY if it is clearly stipulated in the employment contract as a fixed amount paid unconditionally every month.

3. How Much of Your Bonus Can Be Included?

[Summary] Uncertain bonuses like “performance-based pay” cannot be included. The absolute requirement is a clear, written guarantee in the employment contract (e.g., “guaranteed 2 months’ base salary”).

Bonuses can be added to your “annual income” to earn points, but strict evidence is required. Verbal claims like “I got a 1 million JPY bonus last year, so I will get it again” or showing past payment records will not be accepted by Immigration.

The absolute condition for incorporating a bonus into your expected annual income is that “the payment amount of the bonus is objectively guaranteed in the employment contract (or Notice of Working Conditions).” Uncertain, performance-linked bonuses stated as “paid according to company performance” or “determined by personal evaluation” are not considered guaranteed future remuneration and will not be counted for even 1 JPY in the screening.

4. Practical Q&A: The Absolute Condition of “Minimum 3 Million JPY” Regardless of Age

[Summary] If your expected annual income falls below 3 million JPY, the HSP visa will automatically be denied, regardless of how many points you score in education or experience.

Q. I have 80 points just from my education and work experience. Can I get the visa if my annual income is 2.8 million JPY?

A. No. There is a “cut-off line” in the HSP points calculation that you must never overlook: the “Expected Annual Income of 3 Million JPY or More” criteria. Even if you hold a PhD from a world-renowned university, possess N1 Japanese proficiency, and score over 80 points, if your contracted annual income in Japan (after subtracting excluded allowances) is “2.99 million JPY or less,” your application will be instantly rejected.

Q. What happens if my annual income drops after I obtain the visa?

A. The requirement for the HSP visa is that you “maintain 70 points or more.” If your income drops at the time of visa renewal (e.g., due to a bonus cut) and your total points fall below 70, you will not be able to renew the HSP visa. You will be required to downgrade to a standard work visa such as “Engineer/Specialist in Humanities/International Services.”

Conclusion: Millimeter-Precision “Contract Design” Determines Success

To securely grab the “annual income points” for the Highly Skilled Professional visa, legally precise drafting of the employment contract by the hiring company is absolutely essential. Immigration examiners calculate points mechanically based purely on the “written data in the contract,” not on the applicant’s potential abilities or the company’s size.

If a bonus is to be included, the exact amount and payment timing must be explicitly stated. If fixed overtime is included, it must be clearly separated from the base salary. This consistency in documentation at the initial stage is the core legal approach to ensuring the elite visa is approved and realizing a safe relocation to Japan.