Understanding HSP Annual Salary Points
Understanding HSP Annual Salary Points
Breaking Down the Highly Skilled Professional (HSP) Salary Points System
At Continental Immigration Law Office, we assist corporate HR teams and professionals in understanding the Highly Skilled Professional (HSP) Visa point-based salary system. A common concern is how annual salary projections affect eligibility. The annual salary calculation is based on projected earnings at the time of application, encompassing base pay, bonuses, and taxable allowances.
What Qualifies as ‘Annual Salary’ for Points Calculation?
The HSP point system includes base salary, bonuses, and taxable allowances but excludes reimbursements such as commuting, dependent, and housing allowances. Overtime is generally not considered unless it is fixed. Compensation structures involving stock rewards (RSUs, PSUs) and performance-linked bonuses add complexity.
Incorporating Overseas Compensation for Japan-Based Employees
For expatriates working in Japan, salaries paid by their overseas parent company or subsidiary may count towards the HSP point calculation. Typically, these salaries are split between the foreign and Japanese employer. However, if the transfer is not affiliated with an overseas entity, this income is not considered.
Minimum Salary Requirements for HSP Categories
To qualify under HSP categories 1b and 1c, the projected annual salary must be at least 3 million JPY.
Insights into Japanese Salary Structures
Challenges in Japan’s Salary System
Traditional Japanese companies follow seniority-based salary structures, often leading to lower wages for younger professionals. When entering Japan’s corporate world, foreign professionals may find salary expectations different from global standards. While salaries have improved, they still trail behind international benchmarks.
How We Support Professionals and Employers
At Continental Immigration, we provide strategic guidance to corporate HR teams and foreign professionals navigating Japan’s immigration and employment systems. Whether you are an employer seeking clarity on HSP salary points or a professional evaluating your visa eligibility, we are here to help.
Need expert advice on HSP salary points and visa qualifications? Let our experienced team assist you in securing your future in Japan.
CONTACT US TODAYMeet Our Immigration Consultant
Masakazu Murai
With 18 years of experience in investment banking at Mitsubishi UFJ Morgan Stanley, Masakazu Murai has provided financial advisory services to over 500 executives and entrepreneurs. As a certified Gyoseishoshi Immigration Lawyer, he specializes in financial consulting and immigration services, helping professionals secure visas and permanent residency in Japan.
- Gyoseishoshi Immigration Lawyer
- CMA (Certified Financial Analyst – Japan)
- CFP (Certified Financial Planner)
- MBA in Entrepreneurship