Remote’s guide to employing in

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  • Capital city


  • Currency

    Japanese yen (¥, JPY)

  • Languages


  • Population size


Services available in this country:
Global Employment ServicesContractor Management

Facts & Stats

Japan Map Illustration
  • Capital city


  • Currency

    Japanese yen (¥, JPY)

  • Languages


  • Population size


  • Ease of doing business

    Very easy

  • Cost of living index

    87.77 (2021)

  • Payroll frequency


  • VAT - standard rate


  • GDP - real growth rate

    0.7% (2019)

Japan has enjoyed a long, rich history spanning around 2,000 years, and has given rise to a wonderful cultural heritage featuring samurai, ninjas, calligraphy, origami, sushi, ramen, and of course, anime!

Armed with a $5.5 trillion GDP, Japan is the world’s third-largest economy, built on powerful technology, automotive, tourism, and telecoms industries. And with unusually low unemployment figures, a welcoming population, and growing cultural diversity, Japan has maintained a solid place on the top of the world’s most desirable places to do business.

Grow your team in Japan with Remote

Looking to hire employees in Japan? Companies hiring in Japan must either own a local legal entity or work with a global employment platform like Remote that can legally provide employment services in the country. Remote can employ team members in Japan and keep you compliant at all times.

Remote can hire, onboard, and pay your Japan team so you don't have to set up local HR services in the region. Remote also makes it easy to pay contractors in Japan. Sign up now to get started or talk to an expert for more details.

Risks of misclassification

Japan, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Japan may lead to fines and penalties for the offending company.

Employing in Japan

Japanese labor laws are outlined across two regulations, namely:

  • The Japanese Civil Code, and

  • The Labor Standards Act of 1947

Both of these define provisions for employee protections and workers’ rights which apply to Japan’s workforce of 68.7 million.

Employees in Japan enjoy protections against discrimination based on age, religion, sexual orientation, gender expression, and race.

Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Japan.

Minimum Wage

In Japan, minimum wage rates are set regionally in line with local costs of living and range from ¥714 ($6.46) to ¥932 ($8.43) per hour. Japan’s hourly minimum wage depends on the region. The highest being 985 Yen in Tokyo and the lowest being 761 Yen in Kagoshima.

Payroll Cycle

For customers of Remote, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

Onboarding Time

We can help you get a new employee started in Japan fast. The minimum onboarding time we need is only 19 working days.

Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.

For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.

Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.

14 Public holidays

Saturday, February 11, 20231National Foundation Day (建国記念の日)
Thursday, February 23, 20232Emperor’s Birthday (天皇誕生日)
Tuesday, March 21, 20233Vernal Equinox Day (春分の日)
Saturday, April 29, 20234Shōwa Day (昭和の日)
Wednesday, May 3, 20235Constitution Memorial Day (憲法記念日)
Thursday, May 4, 20236Greenery Day (みどりの日)
Friday, May 5, 20237Children’s Day (こどもの日)
Monday, July 17, 20238Marine Day (海の日)
Friday, August 11, 20239Mountain Day (山の日)
Monday, September 18, 202310Respect for the Aged Day (敬老の日)
Saturday, September 23, 202311Autumnal Equinox Day (秋分の日)
Monday, October 9, 202312Sports Day (スポーツの日)
Friday, November 3, 202313Culture Day (文化の日)
Thursday, November 23, 202314Labor Thanksgiving Day (勤労感謝の日)

Competitive benefits package in Japan

At Remote, we’re passionate about helping you craft the best possible employee experience for your team. We are leading the way in developing globally competitive benefits programs. This means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive, and your company has the localized expertise to needed attract and keep the best global talent.

Our benefits packages in Japan are tailored to fulfill the local needs of employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance

  • Dental Insurance

  • Vision Insurance

  • Mental Health Support

  • Pension or 401(K)

  • Life and Disability Insurance

Taxes in Japan

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Japan.

  • 9.15%

    Pension contribution

  • 4.935%

    Health Insurance Contribution (or 5.83% if 40 years or older)

  • 0.6%

    Unemployment insurance

  • 0.25% - 8.8%

    Work injury

  • ~0.36% - Family allowance

Types of Leave

Employees earn paid vacation days based on their tenure, starting after they’ve spent six months working with an employer, and can accrue up to two years of paid vacation.

  • 6 months: 10 days paid vacation

  • 1.5 years: 11 days paid vacation

  • 2.5 years: 12 days paid vacation

  • 3.5 years: 14 days paid vacation

  • 4.5 years: 16 days paid vacation

  • 5.5 years: 18 days paid vacation

  • 6.5 years: 20 days paid vacation

  • Over 6.5 years: 20 days paid vacation

Employment termination

Termination process

In Japan, terminating employee contracts can be demanding, and employees can dispute and only accept to be let go with a severance package equivalent to a month’s pay for every year worked.

Notice period

Employers are required to provide 30 days advance notice or compensate the employee in lieu of the mandatory notice period.

Severance pay

There are no requirements for employers to offer severance packages under Japanese labor laws.

Probation periods

Probation periods last anywhere from 1 - 12 months.