Expand your global workforce in Japan
Your guide to the employment landscape, working customs and local labor laws in Japan
Capital
Tokyo
Currency
Japanese Yen (JPY)
Languages
Japanese
GDP per Capita
$36,492.15
Employer Tax
15.045%
Payroll Frequency
monthly
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.
Japan
Top local universities in Japan
The University of Tokyo
Ranking
Local: 1
World: 100
Kyoto University
Ranking
Local: 2
World: 147
Keio University
Ranking
Local: 3
World: 256
Osaka University
Ranking
Local: 4
World: 347
Hokkaido University
Ranking
Local: 5
World: 348
Top Local Job Boards:
GaijinPot, Daijob, Craigslist, JobsinJapan
Number of LinkedIn users:
3,740,000
Top Recruitment Agencies:
Where to find talent
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
Top Recruitment Agencies:
Salary Data
Below listed are the average salaries for some common jobs in Japan.
| Job Title | Average Monthly Salary (in JPY) | Average Monthly Salary (in USD) |
| Financial Manager | 1,050,000 | 7,423 |
| General Manager | 931,000 | 6,581 |
| Business Development Manager | 834,000 | 5,895 |
| Financial Analyst | 708,000 | 5,005 |
| Business Analyst | 642,000 | 4,538 |
| Project Manager | 619,000 | 4,376 |
Employ in Japan
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.
Probation period
Employees in Japan can have 3 to 6 months of probation period.
Public and Provincial Holidays
| Date | Name | Description |
| January 1 | New Year’s Day | National Holiday |
| January 1 | January 1 Bank Holiday | National Holiday |
| January 2 | January 2 Bank Holiday | National Holiday |
| January 3 | January 3 Bank Holiday | National Holiday |
| January 13 | Coming of Age Day | National Holiday |
| February 11 | National Foundation Day | National Holiday |
| February 23 | Emperor’s Birthday | National Holiday |
| February 24 | Emperor’s Birthday observed | National Holiday |
| March 20 | Spring Equinox | National Holiday |
| April 29 | Shōwa Day | National Holiday |
| May 3 | Constitution Memorial Day | National Holiday |
| May 4 | Greenery Day | National Holiday |
| May 5 | Children’s Day | National Holiday |
| May 6 | Greenery Day observed | National Holiday |
| July 21 | Sea Day | National Holiday |
| August 11 | Mountain Day | National Holiday |
| September 15 | Respect for the Aged Day | National Holiday |
| September 23 | Autumn Equinox | National Holiday |
| October 13 | Sports Day | National Holiday |
| November 3 | Culture Day | National Holiday |
| November 23 | Labor Thanksgiving Day | National Holiday |
| November 24 | Labor Thanksgiving Day observed | National Holiday |
| December 31 | December 31 Bank Holiday | National Holiday |
Employee Leaves
| Type of Leave | Time Period | Mandatory |
| Annual Leave | 10-20 days | Yes |
| Sick Leave | 0 days | No |
| Maternity Leave | 14 weeks | Yes |
Leave Compliance
Public and Provincial Holidays
Payroll in Japan
Payroll cycle
Employees in Japan are paid monthly.
Minimum wage
Minimum wage in Japan varies with location, but the national weighted average amount of hourly minimum wage is JPY 1,055.
Read more
Overtime pay
The standard working hours in Japan are 8 hours per day and 40 hours per week. Overtime is legal in the country, with a cap of 45 hours per month and 360 hours per year. The overtime pay varies as per the table below:
Read more
How taxes work
Employer Payroll Tax
| Contributions | Rate |
| Health Insurance | 4.99% |
| Welfare Pension | 9.15% |
| Unemployment Insurance | 0.60% |
| Child Allowance | 0.36% |
| Worker’s Accident Compensation Insurance | Varies on the type of business |
Employee Payroll Tax
| Contributions | Rate |
| Health Insurance* | 4.99% |
| Welfare Pension | 9.15% |
| Unemployment Insurance | 0.60% |
| Child Allowance | 0.36% |
*Note: There is an additional fixed rate of 0.82% for the long term health insurance that is applicable for ages of 40 and 64.
Employee Income Tax
| Taxable Income (Japanese Yens, JPY) | Tax on Excess (%) |
| Under 1,950,000 | 5 |
| Over 1,950,000 and under 3,300,000 | 10 |
| Over 3,300,000 and under 6,950,000 | 20 |
| Over 6,950,000 and under 9,000,000 | 23 |
| Over 9,000,000 and under 18,000,000 | 33 |
| Over 18,000,000 and under 40,000,000 | 40 |
| Over 40,000,000 | 45 |
VAT
The standard VAT rate in Japan is 10%. However, few goods and services are levied a VAT of 8%.
Bonus
13th Month Pay
13th month pay is customary in Japan. Most employers offer these incentives for their employees as a winter bonus, usually 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
Employee offboarding
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.”
A notice period of up to 30 days is generally observed in Japan.
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
Expand into
150+ countries
Expand globally and hire talent in 150+ countries without having to set up an entity. Use Multiplier's Employer of Record to manage the complete employee experience while having the flexibility to enter new markets.
Overtime Pay
Minimum Wage
| Prefecture | Minimum hourly wage (JPY, Japanese yens) |
| Hokkaido | 1,010 |
| Aomori | 953 |
| Iwate | 952 |
| Miyagi | 973 |
| Akita | 951 |
| Yamagata | 955 |
| Fukushima | 955 |
| Ibaraki | 1,005 |
| Tochigi | 1,004 |
| Gunma | 985 |
| Saitama | 1,078 |
| Chiba | 1,076 |
| Tokyo | 1,163 |
| Kanagawa | 1,162 |
| Niigata | 985 |
| Tomiyama | 998 |
| Ishikawa | 984 |
| Fukui | 984 |
| Yamanashi | 988 |
| Nagano | 998 |
| Gifu | 1,001 |
| Shizuoka | 1,034 |
| Aichi | 1,077 |
| Triple | 1,023 |
| Shiga | 1,017 |
| Kyoto | 1,058 |
| Osaka | 1,114 |
| Hyogo | 1,052 |
| Nara | 986 |
| Wakayama | 980 |
| Tottori | 957 |
| Shimane | 962 |
| Okayama | 982 |
| Hiroshima | 1,020 |
| Yamaguchi | 979 |
| Tokushima | 980 |
| Incense River | 970 |
| Ehime | 956 |
| Kochi | 952 |
| Fukuoka | 992 |
| Saga | 956 |
| Nagasaki | 953 |
| Kumamoto | 952 |
| Oita | 954 |
| Miyazaki | 952 |
| Kagoshima | 953 |
| Okinawa | 952 |
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 and Immigration