Global Employment Solutions & PEO in 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.

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

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%.

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.

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.

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

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.

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.