Country Payroll Guide Japan
We deliver secure, compliant, accurate and touchless global payroll for Japan.
Key Facts
- Capital
- Tokyo
- Date format
- yyyy-mm-dd
- Currency
- Japanese Yen (¥)
- VAT
- the standard rate is 5%
Contributions
Employers
- Family Allowance
- Family allowance - 0.36%
- Pension
- Pension - 9.15%
- Health Insurance
- Health Insurance - 4.94% to 5.82%
- Unemployment Insurance
- Unemployment Insurance - 0.6%
- Work Injury
- Work Injury - 0.25% to 8.8%
- Total Employment Cost
- Total Employment Cost - 15.30% to 24.73%
Employees
- Pension
- Pension - 9.15%
- Health Insurance
- Health Insurance - 4.94%
- Total Employee Cost
- Total Employee Cost - 14.40%
Minimum Wage
- Minimum Wage
- Minimum wage in Japan is 761 to 985 ¥ per hour.
Payroll
- Payroll Cycle
- Monthly
- 13th Salary
Not required by law.
Income Tax
- Employee Income Tax (1)
- Flat rate - 20.42%
Working Hours
- General Working Hours
40 hours per week.
- Overtime
Typically for overtime and night-time – additional payment 25% weekends and holidays – additional payment 35%.
Leave
- Paid Time Off
10-20 days depending on the length of service.
- Public Holidays
16 public holidays. No legal requirement for extra payment, so usually taken as a time off.
- Sick Days
No mandatory sick leave. Employees use their paid vacation to take leave of absence.
- Maternity Leave
6 weeks prior birth, 8 weeks after birth.
- Paternity Leave
A new father can take the leave indefinitely for up to one year after birth. They can take the leave in two periods, with the first occurring within 8 weeks of birth.
- Parental Leave
Childcare leave is covered by the labor insurance and an employee is able to take it till the day before the child turns 1 year old.
- Other Leave
Family care leave: Unpaid, up to 3 months
Work-related injury leave: 60% of daily benefits plus an additional 20% special supplement after a 3-day waiting period
Bereavement Leave: 3 – 5 days
Termination
- Termination Process
Valid reason must be provided by employer, as employees often dispute and require compensation.
- Notice Period
At least 30 days.
- Severance Pay
No statutory severance payment.
- Probation Period
3-6 months.
Visa
- Employment Visa
In order to work in Japan, it is necessary to obtain a work visa prior to arriving in the country. People on a 3 month visitor’s visa are not permitted to work.
