Country Payroll Guide Japan

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Tokyo-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.