Originally Posted by
joejones
Commuter passes can also be a way to enhance one's salary. When I lived in Osaka, for instance, it cost much more to take JR from Kyoto or Kobe than the cheaper Hankyu line. The company doesn't buy the pass, but rather gives the employee the money to buy the pass, so many people would tell their company that they were using JR and then secretly use Hankyu instead, pocketing an extra $3 or so each day.
If so, the company likely doesn't mind. This "commutation allowance" is not taxed, so it's a way to pass a bit of money to employees tax-free. Last time I checked, which was some years ago, the commutation allowance was limited by law to a maximum of about Y33,000 a month so it isn't a huge additional amount.