The “Highly Skilled Professional” (HSP) visa, which offers a fast track to Japanese Permanent Residency in as little as one year, is the most attractive status for elite foreign talent. The absolute requirement is scoring 70 points or more in categories such as academic background, professional career, age, and annual salary.
However, the “Annual Salary” category poses the highest risk of application denial. Cases are endless where applicants assume, “My salary easily clears the points requirement,” only to have Immigration deduct points during their strict screening, resulting in an immediate rejection.
This article explains the correct legal definition of “Annual Salary” for the HSP visa in Japan, the clear boundary between included and excluded allowances, and the employment contract design strategy required to logically pass the screening.
1. The Biggest Misconception: “Expected Future Salary,” Not “Past Salary”
Many mistakenly believe the annual salary for the point calculation refers to “the gross amount on their tax withholding slip for the past year” or “their salary at their previous job.” This is a fatal error.
What Immigration evaluates is “the expected amount of remuneration to be paid over the upcoming year for working at the accepting organization (company) in Japan.” Even if you earned 10 million yen in your home country or at another company, if the base salary at your new Japanese company is 5 million yen, the target for the point calculation is “5 million yen.”
2. The Clear Wall Between Included and “Excluded” Allowances
The “total payment amount” on your company pay slip is not automatically recognized as your annual salary. Under Japanese immigration law, there is a strict distinction between what can be “included” and what is “excluded” from remuneration.
- [Excluded Allowances] What you must never include:
Commuting allowances, dependent allowances, housing allowances, separation allowances, and overtime pay (general overtime) are all completely excluded from the annual salary calculation. If you include these and barely reach 70 points, Immigration will deduct them and your application will be instantly denied. - [Included Allowances] What is recognized as points:
In addition to the base salary, “fixed monthly payments” such as managerial allowances or qualification allowances can be included. Also, “fixed overtime pay” (minashi zangyo) can be included in the remuneration if it is clearly stipulated in the employment contract.
3. To What Extent Can Bonuses Be Included?
Bonuses can be added to the “annual salary,” but strict objective evidence is required. Simply claiming verbally or showing records that “I received a 1 million yen bonus last year” is not acceptable.
The absolute condition for incorporating bonuses into the expected annual salary is that “the employment contract (or Notification of Working Conditions) clearly guarantees the payment amount of the bonus (or, for example, a specific number of months of base salary).” Uncertain performance-based bonuses, such as those stating “paid according to company performance,” will not add a single yen to your calculation during Immigration’s screening.
4. The Absolute Rule: “Minimum Annual Salary of 3 Million Yen” Regardless of Age
There is a cut-off line in the HSP point calculation that must not be overlooked: “If your expected annual salary is below 3 million yen, the Highly Skilled Professional visa will be denied, no matter how many high points you earn in other categories (such as education or work experience).”
For example, even if you hold a PhD from a famous overseas university, have N1 Japanese proficiency, and your total points exceed 80, if your contracted annual salary with the Japanese company (minus the aforementioned excluded allowances) is 2.9 million yen, the application will be immediately rejected.
[Advice from an Expert]
To securely claim the “Annual Salary points” for the Highly Skilled Professional visa, it is absolutely essential for the company’s HR to “draft a meticulous employment contract.” Immigration examiners perform mechanical calculations based solely on the “written contract documents,” not on the applicant’s potential. If a bonus is to be included, the amount must be specified; if fixed overtime is to be included, it must be clearly separated from the base salary in the provisions. This logical consistency in the initial documents is the entire strategy for securing this elite visa.