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.

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Employee - Japan

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.

  • Health Insurance
  • Pension
  • Worker Compensation Insurance
  • Unemployment Insurance
  • Additional Medical (Vision, Dental, Mental Health)


    Speak to our team about how to compliantly hire in Japan

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    Quick Overview

    Currency: Japanese Yen (JPY)

    Capital: Tokyo

    Official language: Japanese

    Payroll Cycle: Monthly

    Statutory Holidays

    Paid Time Off

    In Japan, employees are entitled to paid holidays based on the length of the labor relationship:

    • 6 months of employment - 10 days' paid leave
    • 1.5 years of employment - 11 days' paid leave
    • 2.5 years of employment - 12 days' paid leave
    • 3.5 years of employment - 14 days' paid leave
    • 4.5 years of employment - 16 days' paid leave
    • 5.5 years of employment - 18 days' paid leave
    • 6.5 years of employment - 20 days' paid leave

    Public Holidays

    • National Foundation Day
    • The Emperor's Birthday
    • Labor Thanksgiving Day
    • Respect for the Aged Day
    • New Year's Day
    • Coming-of-Age Day
    • Vernal Equinox Day
    • Shōwa Day
    • Constitution Memorial Day
    • Greenery Day
    • Children's Day
    • Marine Day
    • Mountain Day
    • Autumn Equinox Day
    • Health and Sports Day
    • Culture Day

    General Taxation

    Individual Income Tax

    The individual income tax depends on many variables, such as marital status, level of income, etc. The average ranges from 5% to 45%

    Employer Cost

    Approximately, 16.24% of employee salary

    Additional information

    Employment Contract Details

    Employment contracts must be in writing and in Japanese. English contracts are allowed but it's common practice to have both languages.

    Probation Period

    It’s not compulsory but is common. Typically, it’s 3 to 6 months and should not exceed one year.

    Minimum Wage Requirements

    Japan’s minimum wage depends on the region. It ranges from JPY 790 to JPY 1,1013 per hour.

    Maximum working hours and overtime

    Maximum working time is generally 40 hours per week and 8 hours a day. If that threshold is exceeded the employer must pay overtime.

    Bonus and expense payments

    On top of salary, companies usually pay transportation fees for employees from their residence to their work place. This commutation allowance, which is generally the cost of a monthly train pass, is usually subject to a cap and is a non-taxable allowance for the employee. Any other allowance paid on top of base salary is subject to income tax.

    Parental Leave

    • Maternity Leave: Employees are entitled to 14 weeks. This is divided into 6 weeks before the birth and 8 weeks after. If cleared by a doctor, the employee is able to return to work before the maternity leave expires. It is not mandatory to pay an employee during maternity leave. If no wages are paid, the employee is paid 2/3 of her base wage from her health insurance.
    • Paternity Leave: There’s no statutory requirement for Paternity leave at present.

    Sick Leave

    Employers are not required to pay sick leave. Usually, employees use their vacations days.

    Termination requirements for employees in

    An employee can only be terminated if the employer has resonable cause and it would not be considered unfair in general societal terms. Employees are entitled to dispute and negotiate severance pay that usually starts at 1 month's salary per year of service.

    Notice Period

    In Japan, the minimum required notice period is 1 month's written notice or provide payment in lieu. Does not apply to employees that are serving a probationary period of 14 days or less.

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    5 Stars

    Deel is the best!!

    “Deel is an amazing platform! It's super intuitive and user friendly, plus it runs suuuuper smoothly!! It has great options for paying and withdrawing money, plus it helps you keep super organized with your spending. They also have great support and are super friendly with all the questions you might have :D I would definitely recommend it!!”

    Manuela Echeverry
    Nov 20, 2020
    5 Stars

    A contracting life-changer!

    "This has by far the singular tool that made my contracting work amazing. It used to be that contract management and payouts was a nightmare — Deel makes everything so easy especially with its Transferwise integration. Everyone gets paid on time and kept happy. I also contacted their support a couple of times for some small questions and they’ve been nothing short of amazing. If you’re a contractor or someone who hires contractors then definitely give Deel a go."

    Kix Panganiban
    Dec 3, 2020
    5 Stars

    Great service offering!!

    "The Deel platform has been super effective for my team and I and has enabled us to bring on workers globally. The platform allows us to onboard individuals seamlessly and with no issues at all. Highly recommend."

    Michael US
    Oct 28, 2020
    5 Stars

    Terrific service

    "Great service, amazing customer care, terrific platform, both for the company and for the contractors/employees. Saving everyone's time and money"

    Nunzio Martinello
    Dec 15, 2020
    5 Stars

    Deel is a game-changer for distributed teams

    "Deel has been instrumental in helping us both open and operate our EU operations. It's super simple to set up and implement and the support team has been world-class. I can't recommend them enough!"

    Jeremie Habib
    Nov 16, 2020
    5 Stars

    Great app with great customer service

    "Great app with great customer service, with great attention to details and legal requirements. Looking forward to keep using it!"

    Felipe Marote
    Jan 29, 2021