Japan

Japan

Global Employment Solutions & PEO in Japan

Omnipresent makes it fast and easy to employ remote talent in Japan. We take care of payroll, compliance, taxes, and admin so you can focus on growing your business.

OmniAtlas Employment Rating

Capital City
Tokyo
Currency
Japanese Yen
Native Language
Japanese
Payroll Frequency
Monthly
Employee Protections
Strict
Employment Costs
Low
Termination
Difficult
Immigration
Difficult
Cost of Living
High
Population
126.3 Million

What You Need to Know About Employing in Japan

Don’t risk non-compliance with local employment, social insurance, and tax regulations.

How it works
Payroll & Taxes
Employer Costs
Working Hours
Holidays & Vacation
Types of Leave
Health & Benefits
Termination Laws
Japan

How Do Omnipresent Global Employment Solutions Work?

Omnipresent provides global employment solutions and professional employment organisation (PEO) services for companies looking to grow and build out a global team in Japan. Traditional methods of establishing global employment and subsidiaries in Japan typically take months and can incur heavy costs. Omnipresent’s global employment solutions and PEO services is helping hundreds of organisations onboard new employees in Japan in a matter of days with full compliance of local labour laws. We use a tech-forward approach to streamline the process. 

  • Your company conducts the hiring and candidate selection process in Japan.
  • Omnipresent hires the selected candidate through our local professional employment organisation in Japan.
  • We take care of ensuring your new employee is hired in compliance with local labour laws, payroll regulations, benefits and more -- all without needing to set up a subsidiary in Japan.
  • The individual is legally contracted by Omnipresent but assigned to work for your company and reports to a manager or team in your organisation as your full-time employee.
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Payroll & Taxes in Japan


Employee Income Taxes:

Income tax and resident tax are deducted from payroll. 


5% for income under 1,950,000 JPY 

10% for income over 1,950,000 JPY but under 3,300,000 JPY 

20% for income over 3,300,000 JPY but under 6,950,000 JPY 

23% for income over 6,950,000 JPY but under 9,000,000 JPY 

33% for income over 9,000,000 JPY but under 18,000,000 JPY 

40% for income over 18,000,000 JPY but under 40,000,000 JPY 

45% for income over 40,000,000 JPY


Payroll Cycle:

Monthly

Japan

Employer Costs in Japan


Employer Contributions:

Maximum possible aggregate employer contribution is 14.35-15.69%. 


Employee Contributions:

Maximum possible aggregate employee contribution is 14.685-16.63%.

Japan

Working Hours in Japan


Typical Working Hours per Week:

The typical work week in Japan consists of 40 hours per week.


It’s important to note that typical working hours can vary by industry in some countries. Contact our team for the most up-to-date information!


Overtime Laws:

Overtime laws in Japan are complex and can depend on the specific circumstances and the employee. We are happy to discuss in more detail for a specific context.

Japan

Public Holidays & Vacation Time in Japan


Standard Public Holidays in Japan:

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


Vacation Time in Japan:

If the employee has been continuously employed for 6 months and has an attendance of at least 80% of the total number of working days during that period, they are entitled to a minimum of 10 days' paid annual leave.

Entitlement increases by 1 day per year for the following 2 years and by 2 days per year thereafter, up to a maximum of 20 days per year. Employees are entitled to carryover unused annual leave for 1 year only.

Japan

Types of Leave in Japan


Sick Leave:

In general, there are no sick leave rights in Japan. Employers may have a discretionary sick leave policy.


Maternity Leave:

Japan’s maternity leave regulations include 14 weeks (6 weeks before and 8 weeks after birth) at two thirds of the base salary, which is covered by Social Security.


Paternity Leave:

Paternity leave in Japan may last up to 12 months.


Unpaid Childcare Leave:

Unpaid childcare leave exists in Japan and its length varies depending on whether both parents intend to take it. 


Other Types of Leave:

  • Unpaid Family Care Leave
  • Bereavement Leave
Japan

Health Insurance & Supplementary Benefits in Japan

We believe that remote employees should be able to access their local, as well as a high standard international benefits anywhere they are. Details about international or country specific benefits packages can be provided on request. Please contact us for further details.

Japan

Termination & Severance in Japan


Termination with Cause:

There are a range of reasons that an employer in Japan can use to lawfully terminate an employment relationship, which depend on the specific circumstances. If you would like to know more specific details, please contact us. 


Severance:

There is no statutory entitlement to severance pay, but often terminations are accompanied by negotiation between the parties to establish an exit package.



Notice of Termination:

It is mandatory to provide at least 30 days notice in Japan.

Japan

Grow your global team. 

Employ the best talent, anywhere in the world

The benefits of growing a global team and finding the best talent anywhere in the world are endless. It’s important to note that labour laws and regulations in Japan are strict with penalties for non-compliance. Let our team take care of the details such as payroll, benefits, compliance, taxes, and admin so you can focus on growing your business. We are here to help you every step of the way.

Want to onboard an international employee today? Call us.

Join thousands of companies who are leading the way and employing remote teams all over the world.

Omnipresent makes it easy to employ, pay and support your international team.

Book a call with us to start building your global team today.

Employ Anywhere. Be Omnipresent.  

Curious to learn more?
Book a Call