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.

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

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.

We have a 4.7 out of 5 rating on Trustpilot

We're trusted by over 1200 businesses all over the world.
‍Read our reviews on Trustpilot.com.

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

Nunzio Martinello

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

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

Chat to our team about compliantly hiring in

Japan

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