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Looking to hire in Japan

Companies must either set up a local entity or partner with a global employment provider.

NEO AI Last Updated Mar 6, 2026 with NEO AI

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Employing in Japan

Key employment information for hiring and managing employees in Japan.

Minimum Wage
JPY 2,121,504
per year
Employer costs
~19.45%
of salary
Employee costs
~14.74%
of salary

Minimum Wage

JPY 2,121,504 per year

Employer costs

  • Pension Insurance: 9.15%
  • Health Insurance: 4.99%
  • Workers' Compensation: 4%
  • Unemployment Insurance: 0.95%
  • Family Allowance: 0.36%

Employee costs

  • Pension Insurance: 9.15%
  • Health Insurance: 4.99%
  • Unemployment Insurance: 0.6%

Taxes

Estimated employer contributions of approximately 19.45%, and employee contributions of approximately 14.74% of gross salary, covering mandatory social contributions and insurance.

Employee Taxes

5% ¥0 – ¥1,950,000
10% ¥1,950,000 – ¥3,300,000
20% ¥3,300,000 – ¥6,950,000
23% ¥6,950,000 – ¥9,000,000
33% ¥9,000,000+
40% ¥18,000,000+
45% ¥40,000,000+
  • Pension Insurance 9.15%
  • Health Insurance 4.99%
  • Unemployment Insurance 0.6%

Employer Taxes & Contributions

Estimated Employer Cost

~19.45%
Pension Insurance 9.15%
Health Insurance 4.99%
Workers' Compensation 4%
Unemployment Insurance 0.95%
Family Allowance 0.36%

Working hours

Working hours per week

40 hours per week

Leave

Public holidays in Japan

New Year's Day
2026-01-01
Coming Of Age Day
2026-01-12
Foundation Day
2026-02-11
The Emperor's Birthday
2026-02-23
Vernal Equinox Day
2026-03-20
Shōwa Day
2026-04-29
Constitution Memorial Day
2026-05-04
Greenery Day
2026-05-04
Children's Day
2026-05-05
Marine Day
2026-07-20
Mountain Day
2026-08-11
Respect For The Aged Day
2026-09-21
Autumnal Equinox Day
2026-09-23
Sports Day
2026-10-12
Culture Day
2026-11-03
Labour Thanksgiving Day
2026-11-23

Termination

Notice period

30 days minimum (30 days during probation)

Probation period

30 – 360 days

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