Remote’s guide to employing in

Japan
japan flag

Make employment in Japan easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Japan, all in one easy-to-use platform.

  • Capital City

    Tokyo

  • Currency

    Japanese yen (¥, JPY)

  • Languages

    Japanese

  • Population size

    125,620,000

Services available in this country:
Employer of Record ProductContractor Management

Facts & Stats

Japan Map Illustration
  • Capital City

    Tokyo

  • Currency

    Japanese yen (¥, JPY)

  • Languages

    Japanese

  • Population size

    125,620,000

  • Ease of doing business

    Very easy

  • Cost of living index

    87.77 (2021)

  • Payroll frequency

    Monthly

  • VAT - standard rate

    5%

  • 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 labour laws are outlined across two regulations, namely:

  • The Japanese Civil Code, and

  • The Labour 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, the minimum wage is ¥1,113 per hour.

Payroll Cycle

For customers of Remote, all employee payments will be made in equal monthly instalments 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 16 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.

16 Public holidays

Jan
Monday, 1 January 20241New Year's Day (元旦)
Monday, 8 January 20242Coming of Age Day (成人の日)
Feb
Sunday, 11 February 20243National Foundation Day (建国記念の日)
Friday, 23 February 20244The Emperor's Birthday (天皇誕生日)
Mar
Wednesday, 20 March 20245Vernal Equinox Day (春分の日)
Apr
Monday, 29 April 20246Shōwa Day (昭和の日)
May
Friday, 3 May 20247Constitution Memorial Day (憲法記念日)
Saturday, 4 May 20248Greenery Day (みどりの日)
Sunday, 5 May 20249Children's Day (こどもの日)
Jul
Monday, 15 July 202410Marine Day (海の日)
Aug
Sunday, 11 August 202411Mountain Day (山の日)
Sept
Monday, 16 September 202412Respect for the Aged Day (敬老の日)
Sunday, 22 September 202413Autumnal Equinox Day (秋分の日)
Oct
Monday, 14 October 202414Health and Sports Day (体育の日)
Nov
Sunday, 3 November 202415Culture Day (文化の日)
Saturday, 23 November 202416Labour 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 localised expertise to needed attract and keep the best global talent.

Our benefits packages in Japan are tailored to fulfil 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 holiday 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 holiday.

  • 6 months: 10 days paid holiday

  • 1.5 years: 11 days paid holiday

  • 2.5 years: 12 days paid holiday

  • 3.5 years: 14 days paid holiday

  • 4.5 years: 16 days paid holiday

  • 5.5 years: 18 days paid holiday

  • 6.5 years: 20 days paid holiday

  • Over 6.5 years: 20 days paid holiday

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 labour laws.

Probation periods

Probation periods last anywhere from 1 - 12 months.

Fair Pricing in Japan

Employer of Record

Hire and pay your global team

Starting at US$599/month

Top features

  • Satisfaction guaranteed

  • No deposits or hidden fees

  • Zero onboarding or offboarding fees

  • Compliant equity incentives support including withholding and reporting

  • Built-in security and compliance

  • Fast onboarding (average 2-3 days)

  • Flexible, localised benefits

Contractor Management

Compliantly onboard and pay contractors

US$29

per contractor/month

Start free trial

Top features

  • Only pay for contractors you actively work with

  • Work with contractors in 200+ countries

  • Create, edit, and sign tailored, localised contracts

  • Approve contractor invoices with one click or auto-pay

  • Transparent payments with complete visibility

Global Payroll

Consolidate your multi-country payroll

US$50

per employee/month

Top features

  • Reduce costs by centralising payroll management

  • Ensure local compliance for every country

  • Direct support from in-house local payroll experts

  • Accurate, on-time, compliant payroll to level-up your employee experience

  • Tax and labour authority reporting handled for you

HRIS

Manage all of your employees in one place

Free
Sign up

Top features

  • Guided onboarding and offboarding

  • Employee profile and document management

  • Time and attendance (time off and tracking)

  • Expense management and reimbursement

  • Employee self-serve on the platform and mobile app