Risks of Applying for Permanent Residence with Unpaid Wages#

Applying for Permanent Residence (PR) in Japan is one of the most rigorously scrutinized procedures within the Immigration Services Agency’s framework. Applicants generally apply after many years of residence, hoping to secure their long-term status. However, a critical issue that sometimes arises is the existence of “unpaid salary” or “delayed wage payments” at the time of application.

This article provides an objective analysis of whether an applicant should proceed with a Permanent Residence application when facing unpaid wages, based on immigration laws and examination guidelines. The short answer is that applying while wages are unpaid carries a significantly high risk of rejection and is generally not recommended.

Failure to Meet the Independent Livelihood Requirement#

One of the fundamental requirements for Permanent Residence is the possession of “assets or skills sufficient to earn an independent livelihood.” This requirement ensures that the applicant will not become a burden on the public and will lead a stable life in Japan in the future.

Typically, the Immigration Services Agency examines the applicant’s annual income over the past few years (usually 3 to 5 years, depending on the current visa status). While there is no explicit statutory amount, a common benchmark used in practice is an annual income of approximately 3 million JPY, which increases depending on the number of dependents.

If there are unpaid wages, it becomes difficult to meet this requirement for the following reasons:

1. Reduced Income on Tax Certificates#

Immigration officials verify income primarily through the “Certificate of Taxation” (Kazei Shomeisho) issued by the municipality. If wages have not been paid, the actual taxable income recorded for that year will decrease. Even if the employment contract states a high salary, if the actual money was not received, it is not counted as income. Consequently, the annual income may fall below the required threshold, leading to a judgment that the applicant lacks financial stability.

2. Instability of Living Foundation#

Being employed by a company that cannot pay wages indicates that the applicant’s livelihood foundation is unstable. Since the examination focuses on both current and future stability, relying on a financially struggling employer is viewed negatively.

Impact on Public Obligations (Good Conduct and National Interest)#

Unpaid salary does not only mean less cash in hand; it often leads to failures in paying taxes and social insurance premiums. The payment status of Resident Tax (Juminzei), Income Tax, Health Insurance, and Pension is the most strictly checked aspect of the Permanent Residence examination.

The Risk of Unpaid Resident Tax#

For most company employees, Resident Tax is deducted directly from their salary (Special Collection). However, if the salary itself is not paid, the deduction cannot occur. In some cases, a company might deduct the tax on paper but fail to remit it to the municipality due to cash flow problems.

From the perspective of the Immigration Services Agency, the crucial factor is “whether the tax has been paid.” Even if the non-payment is the employer’s fault, if the tax remains unpaid or is paid after the deadline, the application for Permanent Residence will likely be denied. If the salary is stopped, the employee is expected to switch to “Ordinary Collection” and pay the tax personally. Failing to do so promptly results in delinquency, which is a fatal flaw in a PR application.

Social Insurance Premiums#

The same logic applies to Employees’ Pension and Health Insurance. If the employer fails to pay the premiums during the period of unpaid wages, there will be gaps or records of non-payment in the applicant’s pension history. This is interpreted as a failure to fulfill public obligations appropriately.

Limitations of Explanatory Statements#

Applicants can attach a “Statement of Reasons” (Riyusho) to explain that the unpaid wages are due to the company’s circumstances and not their own fault. However, the immigration examination is not a forum for moral judgment or sympathy; it is a legal assessment of whether granting PR suits Japan’s national interest.

Even if the applicant is a victim of labor malpractice, the fact remains that their economic foundation is compromised. The logic that “I am currently unpaid, but PR will give me security” does not work. The authorities require applicants to stabilize their livelihood and resolve any tax/insurance discrepancies before applying.

Recommended Course of Action#

Instead of forcing an application that is likely to fail, the following steps are recommended to rectify the situation:

1. Resolve the Employment Issue: Prioritize securing a stable income source. This may involve consulting the Labor Standards Inspection Office to recover unpaid wages or changing jobs to a financially stable company.

2. Ensure Tax and Insurance Compliance: Even if wages are not received, applicants must ensure that Resident Tax and National Health Insurance/Pension are paid. Switching to personal payment methods to avoid any delinquency is crucial. A record of on-time payments is essential for future applications.

3. Rebuild the Track Record: It is generally advisable to wait until a stable income is re-established (e.g., after changing jobs) and a track record of consistent tax and insurance payments (usually for at least 1 to 3 years depending on the severity) is built up before applying for Permanent Residence.

Conclusion#

Applying for Permanent Residence while suffering from unpaid wages poses severe risks. It often leads to failure in meeting the annual income criteria and can cause inadvertent delinquency in tax and social security payments. Rather than rushing the application, applicants should focus on stabilizing their employment situation and ensuring all public obligations are met. This prudent approach is the fastest and most certain path to eventually obtaining Permanent Residence.