Japan
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Salary payment frequency
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Introduction
General Overview & Economic Facts
- Japan (日本, Nippon or Nihon) is an island state situated in the northwest Pacific Ocean in East Asia
- Japan forms part of the Ring of Fire and covers 377,975 square kilometers (145,937 sq mi), including the five main islands are Hokkaid, Okinawa, Honshu, Shikoku and Kyushu
- Japan has become a global leader in the robotics, automotive and electronics industries, with major contributions to the technology and science sectors
- Japan experienced record growth after World War II, becoming the second-largest economy in the world by 1972
- Japan’s economy is the 3rd largest by nominal GDP (2021) and the 4th largest by PPP (2021)
- Japan ranks 19th on the Human Development Index, with one of the world’s highest life expectancies
Why Employ In Japan?
- The main exports from Japan are cars, vehicle parts, integrated circuits and passenger and cargo ships
- 9.47% of the population is between the ages of 15 and 24 years, with 36.8% of the population being between the ages of 25 and 54. Japan has a fairly mature population. The general population therefore possess more work experience and skills, making it a great country to hire experts.
Overview Of The Labour Law
- Employment law in Japan is governed by statutory regulations found in various laws
- These laws include the Japanese Civil Code and the Labour Standards Act
- The Japanese Constitution also provides labour guidelines and regulations
- The employment regulations protect employees from discrimination based on religion, race, sexual orientation and age
- Japanese employment law provides strong labor conditions and protections for employees
Fun Country Facts
- Japan grows square watermelons
- In Japan, there is a ‘crying sumo contest’ where sumo wrestlers compete to see who can make a baby cry first
- The fortune cookie was first made in Kyoto, Japan and dates back to the 19th century
Why Use Playroll Services For Japan?
- Employing in Japan requires companies to have their own legal entity in the country as well as to manage payroll, employee benefits, taxes and legal compliance. This can get quite complicated, especially with the complexity of employment laws in Japan
- With Playroll’s Employer of Record services, your team will be employed by our established legal entities in each country
- We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing a thriving team
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Unemployment Insurance Fund
Called Koyou Hoken OR Shitsugyou Hoken
Calculated on total payroll. There are certain categories of employees that are exempt from contributing to the fund
0.60%
Employee's Pension Insurance
Called Kousei Nenkin
Standard monthly remuneration
9.15%
Calculated on a maximum monthly remuneration of JPY 650,000.00
Standard bonus
9.15%
Calculated on a maximum standard bonus of JPY 1,500,000.00
Employees' Health Insurance
Called Kenkou Hoken
Accident
Called Rousai Hoken in Japan
Calculated on total payroll
Contribution rate varies by industry
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Unemployment Insurance Fund
Called Koyou Hoken OR Shitsugyou Hoken in Japan
Calculated on total payroll. There are certain categories of employees that are exempt from contributing to the fund
Employee's Pension Insurance
Called Kousei Nenkin
Employees' Health Insurance
Called Kenkou Hoken in Japan
Nursing Care Insurance/Long-Term Care Insurance
Called Kaigo Hoken in Japan
Income Tax
Income Tax is ‘Pay As You Earn’
Employment Terms

General
Minimum Wage
- Average minimum wage of JPY 930.00 per hour
Working Hours
- Maximum of 8 hours per day and 40 hours per week
- Minimum meal interval of 45 minutes after 6 hours of work and 1 hours if more than 8 hours are worked
- Typical working hours are 09h00 to 18h00 Monday to Friday
Overtime
- Employees may work a maximum of 15 overtime hours per week
Notice Period
- 30 days’ notice
Severance Pay
- There is no statutory obligation to provide severance pay
Probation Period
- There is no statutory probation period
- It is common to have probation period of 3 to 6 months. A probation period should not exceed 12 months
Bonus
- There is no statutory bonus
- It is common to offer summer and winter bonuses
- This bonus is different to performance bonuses
Public Holidays
- January 1st – New Year’s Day
- January 10th – Coming of Age Day
- February 11th – National Foundation Day
- February 23rd – The Emperor’s Birthday
- March 21st – Vernal Equinox Day
- April 29th – Showa Day
- May 3rd – Constitutional Memorial Day
- May 4th – Greenery Day
- May 5th – Children’s Day
- July 18th – Marine Day
- August 11th – Mountain Day
- September 19th – Respect for the Aged Day
- September 23rd – Autumnal Equinox Day
- October 10th – Health and Sports Day
- November 3rd – Culture Day
- November 23rd – Thanksgiving Day

Leave
Paid Leave / Vacation Days
- Employed for 6 months- 10 days per year
- Employed for 1.5 years- 11 days per year
- Employed for 2.5 years- 12 days per year
- Employed for 3.5 years- 14 days per year
- Employed for 4.5 years- 16 days per year
- Employed for 5.5 years- 18 days per year
- Employed for 6.5 years- 20 days per year
Sick Leave
- There is no statutory sick leave
- Employees use paid annual leave for sick reasons
Maternity Leave
- Paid leave
- Paid by Social Security
- 6 weeks before birth, 8 weeks after birth
Family Care Leave
- Unpaid leave
- Minimum of 5 days and maximum of 10 days for short-term leave
- Maximum of 93 days for long-term leave
Paternity Leave
- Paid leave
- Paid by Social Security
- Part of Childcare Leave. Maximum of 12 months
Parental Leave
Called Childcare Leave
- Paid leave
- Paid by Social Security
- Minimum of 12 months and a maximum of 24 months
Condolence Leave
Called Kibiki Kyuka
- Paid leave
- Paid by employer
- 5 days for the death of a spouse, child, or parent
- 3 days for the death of a grandparent, sibling, or grandchild
- 2 days for the death of a third-degree relative