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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Hire employees in
Japan
without setting up an entity
Usually, to hire in
Japan
, your business needs to set up an entity. That means a local office, an address registered as a subsidiary and an account with a local bank. This, plus navigating regional payroll, tax, and HR laws, can take months.
Japan
also treats contractors differently than full-time employees, so misclassifying a contractor could lead to penalties. Deel lets you can hire employees in
Japan
quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.
We partner with local lawyers to ensure you’re compliant
With labor law experts in 150 countries, you can pick from a library of localized contracts to legally onboard your international team in minutes.
We’ll make sure your team get the best benefits
Deel allows you to legally hire and provide benefits for employees in
Japan
within minutes.
All in one manageable online dashboard.
Contents
Quick OverviewStatutory HolidaysGeneral TaxationAdditional informationTermination RequirementsSpeak to our team about how to compliantly hire in
Japan
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 their 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 Tax
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 working place on. 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
Japan
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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Great service, amazing customer care, terrific platform, both for the company and for the contractors/employees. Saving everyone's time and money
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.
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.