Payroll Cycle
Minumum Wage
Overtime Pay
Time and date of extra work Rate
Overtime Additional 25%
Night-time (22:00 – 05:00) Additional 25%
Weekends and Holidays Additional 35%
Night-time (continuing from overtime) Additional 50%
Holiday (continuing from night-time) Additional 60%
Visa Immigration

Talent Wiki - Japan

Your quick guide on talent and labor compliance norms in Japan
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Capital
Tokyo
Currency
Japanese Yen (JPY)
Languages
Japanese
Payroll Frequency
Monthly
GDP per Capita
$43,118
Employer Tax
32.7% - 34.6%

Supplementary Guide for Employment and Expansion in Japan

Talent Overview

Known as the “Land of the Rising Sun”, Japan’s distinction from the rest of the world is not only its strategic geographical location but also due to its rich cultural virtues. Japanese people are known to be polite, organized, and have a good work ethic. In turn, the country has many merits to its name and is considered one of the most developed countries in the world.

Japan’s economy is ranked as the third-largest in the world by nominal GDP and fourth by Purchasing Power Parity (PPP) GDP. The country is also one of the world’s leading investors, having more than $220 billion in FDI (foreign direct investments) outflows each year.

Major economic hubs:

Tokyo, Osaka, and Kyoto

Skills in demand:

IT engineer, Cloud Computing Engineer, IoT Engineer, Country Manager

Local Universities

The top local universities in the Japan are as follows:

The University of Tokyo

RANKING

Japan : 1

World : 92

Keio University

RANKING

Japan : 2

World : 111

Kyoto University

RANKING

Japan : 3

World : 149

Tokyo Institute of Technology

RANKING

Japan : 4

World : 364

Hokkaido University

RANKING

Japan : 5

World : 385

Salary Data

No. Job Title Salary Range (in JPY) Salary Range (in USD)
1 General Manager 484,000 - 1,420,000 3,746.93 - 10,993.07
2 Information technology Manager 404,000 - 1,320,000 3,127.61 - 10,218.91
3 Human Resource Manager 379,000 - 1,270,000 2,934.07 - 9,831.83
4 Accounting Manager 367,000 - 1,200,000 2,841.17 - 9,289.92
5 Sales Representative 155,000 - 537,000 1,199.82 - 4,156.80

Talent Sourcing Tips

Top Local Job Boards

GaijinPot, Daijob, Craigslist, JobsinJapan

Number of LinkedIn Users

3,143,000

Top Recruitment Agencies

FAIR, Robert Walters, Nippon Shigoto

Employing in Japan

Onboarding Japanese employees can be a real asset to businesses expanding their operations in the country. The first step to realizing this is to be familiarized with the Japanese labor regulations. The following section shall guide you through the onboarding process. 

Employee Contract

There is no required language in Japanese employment contracts, provided it is written in a medium that all parties understand. However, most employers use the Japanese language for these documents

Public and Provincial Holidays

Date Name Type
1 Jan New Year's Day National holiday
2 Jan January 2 Bank Holiday Bank holiday
3 Jan January 3 Bank Holiday Bank holiday
10 Jan Coming of Age Day National holiday
11 Feb National Foundation Day National holiday
23 Feb Emperor's Birthday National holiday
21 Mar Spring Equinox National holiday
29 Apr Shōwa Day National holiday
3 May Constitution Memorial Day National holiday
4 May Greenery Day National holiday
5 May Children's Day National holiday
18 Jul Sea Day National holiday
11 Aug Mountain Day National holiday
19 Sep Respect for the Aged Day National holiday
23 Sep Autumn Equinox National holiday
10 Oct Sports Day National holiday
3 Nov Culture Day National holiday
23 Nov Labor Thanksgiving Day National holiday
31 Dec December 31 Bank Holiday Bank holiday

Employee Leaves

Type of Leave Time Period Mandatory
Annual Leave 11 days Yes
Sick Leave 0 days No
Maternity Leave 14 weeks Yes

Payroll

Payroll Cycle

Employees in Japan are paid monthly.

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Minimum Wage

Minimum wage in Japan varies across different cities. It ranges from 790 JPY - 1,041 JPY.

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Overtime pay

Overtime Pay in Japan is specified based on the time and day that the extra work is performed. Click on the link below to get more details about the rates:

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Health Examination Clause

Bonus

13th Month Pay

A 13th month pay is not mandatory in Japan. However, most employers offer these incentives for their employees as a winter bonus, usually paid around December.

Employee Benefits

Japanese employees are entitled to numerous benefits during their employment. Below are some of them:

  • ~Health & Medical Insurances
  • ~Holidays & Annual Leave
  • ~Maternity & Paternity Leave
  • ~Sickness & Special Ability Leave
  • ~Pensions
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Taxes

Employer Payroll Tax

Category Tax Rate
Health Insurance 4.93%
Welfare Pension, plus Child Allowance 9.15%
Employment Insurance 0.6%

Employee Payroll Tax

Category Tax Rate
Health Insurance 4.92%
Welfare Pension 9.15%
Unemployment Insurance 0.3%

Employee Income Tax

Taxable Income (JPY) Tax Rate Deduction
0 - 1,950,000 5% 0
1,950,000 - 3,300,000 10% 97,500
3,300,000 - 6,950,000 20% 427,500
6,950,000 - 9,000,000 23% 636,000
9,000,000 - 18,000,000 33% 1,536,000
18,000,000 - 40,000,000 40% 2,796,000
40,000,000 and above 45% 4,796,000

VAT

General Consumption Tax in Japan is 10%.

Offboarding & Termination

Termination Process

Employers terminating their employees must provide a notice of termination informing them of the reasons for the decision. In cases of summary dismissal, an employer may do so without any notice but must pay their employees 30-days worth of wages, known as a “notice allowance.”

Notice Period

A notice period of up to 30 days is generally observed in Japan.

Severance Pay

A severance pay is not mandatory in Japan.

Visa and Immigration

According to the Japan Immigration Authority, foreign workers can legally work in the country if they have secured a Japanese work visa. Below are the types of visas in Japan:

  • ~Regular Japan Work Visa
  • ~Japan Highly Skilled Professional Visa
  • ~Japan Working Holiday Visa
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