Hire employees in

Japan, hassle-free

Hire employees in Japan, hassle-free

With Deel, your business can easily hire employees in Japan. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

The average onboarding time frame in Japan is 3 days with Deel.

Download the Guide

Currency

Japanese Yen JPY

Capital

Tokyo

Official Language

Japanese

Payroll Cycle

Monthly

Hire employees in Japan. No entity needed.

Usually, to hire in Japan, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.

Japan also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Japan quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.

All the necessary benefits for Japan
built right in

Deel allows you to provide localized benefits for employees in Japan within minutes. All in one manageable online dashboard.

Our quickstart guide to hiring in Japan

Navigate the tabs below to learn everything you need to know about hiring an employee in Japan

Minimum Wage Requirements

In Japan, the minimum wage is complex. The minimum hourly wage is set according to the region of the employee, and it can vary between ¥714 and ¥932.

Individual Income Tax

The individual income tax ranges from 5% to 45%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates, such as household status and the number of children.

Gross Annual Income Tax Rate (%)
Up to JPY - 1.95 million 5%
Up to JPY - 3.3 million 10%
Up to JPY - 6.95 million 20%
Up to JPY - 9 million 23%
Up to JPY - 18 million 33%
Up to JPY - 40 million 40%
Over JPY - 40 million 45%

Employer Cost

The employer cost is generally estimated at 16.23% of the employee salary.

  • Public Health Insurance - 4.9%
  • Pension insurance - 9.15%
  • Unemployment insurance - 0.60%
  • Long Term Care insurance (over 40 only) - 0.90%
  • Workers Compensation Insurance - 0.30%
  • Childcare Allowance - 0.36%

Overtime Pay & Maximum Hours

Standard working hours are 8 hours per day, 40 hours per week. The standard work week is from Monday to Friday.

Overtime payment is only mandatory if the employee is not an exempt manager. For that case, overtime payment can’t be included in the salary. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 360 hours of overtime per year.

For additional hours, employees are paid at different rates according to different variables:

Classification Rate of increase
Work in excess of statutory working hours 0.25
Work in excess of statutory working hours exceeding 60 hours in a month 0.5
Work on statutory days off 0.35
Work late at night (between 10 p.m. and 5 a.m.) 0.25
Work late at night in excess of statutory working hours 0.5
Work late at night in excess of statutory working hours exceeding 60 hours in a month 0.75
Work late at night on statutory days off 0.6

Maternity Leave

Pregnant employees are entitled to 14 weeks of paid leave. 6 weeks must be taken before the child's birth. The employee will receive 2/3 of the salary during this period, and Social Security will be responsible for this pay.

Paternity Leave

There is no paternity leave currently required by law.

Employees can use parental leave instead.

Parental Leave

Employees are entitled to 12 months of parental leave, including maternity/paternity leave. Both parents can decide how to distribute the time off, which should be 8 weeks after paternity and maternity leave. Either parent can take parental leave. Social security will pay 67% of the salary during this period for the first 180days and then 50% for the remaining days.

Parental can be extended up to 2 years for at 50% pay.

Sick Leave

Employees are not entitled by law to sick leave and it will depend on the employer’s sole discretion.

Deel employees are entitled to 3 paid days of sick leave.

Termination Requirements

Terminations in Japan can be complex. There is no at-will termination in Japan for employers outside the probation period and termination must be done for just cause.

Compliant terminations include:

  • Voluntarily by the employee
  • By mutual agreement
  • Unilaterally by the employer based on:
    • probation period
    • objective grounds
    • disciplinary dismissal
    • performance due to unsuitability for the job
  • By the expiration of the contract

Notice Period

The minimum notice period is 30 days. This does not apply to employees that are serving a probationary period of 14 days or less.

Severance for Employees

In Japan, there are no statutory requirements for severance payments. During the notice period, the employee will receive standard salary wages.

Paid Time Off

Full-time and Part-time employees are entitled to 10 working days of paid time off (PTO) a year. PTO accrues monthly at 0.83 days per month. Employees are eligible for annual leave after 6 months of work. Annual paid leave leftover from one year may be carried over and taken the next year only.

PTO will increase according to the employee's length of service in the same company.

Length of service PTO
5 months 10 days
1.5 years 11 days
2.5 years 12 days
3.5 years 14 days
4.5 years 16 days
5.5 years 18 days
6.5 years 20 days

Public Holidays

Japan celebrates both 16 national and 3 regional holidays based on the location of the employee.

National public holidays include:

  • The first day of the year
  • Coming of age day
  • Foundation Day
  • The emperor's birthday
  • Vernal Equinox Day
  • Showa Day
  • Constitution Memorial Day
  • Greenery day
  • Children's day
  • Marine day
  • Mountain day
  • Respect for the Aged Day
  • Autumnal Equinox Day
  • Sports day
  • Culture Day
  • Labor Thanksgiving Day

Additional Regional Holidays here

Onboarding

Onboarding takes 3 business days. Documents must be completed 1 day before the start date.

Employment Contract Details

Contracts must be in Japanese and can be bilingual. They must be in writing and signed by both parties.

A contract must include:

  • Name
  • Start date
  • Length of the employment
  • Job description
  • Termination conditions

Probation Period

Probation periods are not mandatory. There are no laws stipulating minimum and maximum length. However, generally, the trial period lasts between 3 to 6 months.

After completing the probationary period, it can be extended for 6 additional months.

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Hiring in Japan, hassle-free

With Deel, your business can easily hire employees in Japan. No more worrying about local laws, complex tax systems, or managing
international payroll. Deel takes care of everything in 150+ countries.

Group (8)

599 USD

Management fee

Group (9)

16.2%

Estimate Employer Cost

*of employee salary

Want to learn the cost of hiring an employee in Japan?

View our Employee Cost Calculator

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