Hire and pay 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. The average onboarding time frame in the Japan is 3 days with Deel.
Onboard, pay and manage employees in Japan with Deel
Usually, to hire in Japan, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months. Deel lets you hire employees in Japan quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.
Currency Japanese Yen JPY
Capital Tokyo
Official language Japanese
Payroll cycle Monthly
Our quickstart guide to hiring in Japan
Navigate the tabs below to learn everything you need to know about hiring an employee in Japan
Minimum Wage Requirements
In Japan, the minimum wage is complex. The minimum hourly wage is set according to the region of the employee, and it can vary between ¥714 and ¥1023.
Individual Income Tax
The individual income tax ranges from 5% to 45%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates, such as household status and the number of children.
| Gross Annual Income | Tax Rate (%) |
|---|---|
| Up to JPY - 1.95 million | 5% |
| Up to JPY - 3.3 million | 10% |
| Up to JPY - 6.95 million | 20% |
| Up to JPY - 9 million | 23% |
| Up to JPY - 18 million | 33% |
| Up to JPY - 40 million | 40% |
| Over JPY - 40 million | 45% |
Payroll Cost
The employer cost is generally estimated at 16.55% of the employee salary.
- Health Insurance* - 4.99%
- Pension Insurance* - 9.15%
- Unemployment insurance - 0.95%
- Long Term Care insurance* (over 40 only) - 0.80%
- Workers Compensation Insurance - 0.30%
- Contributions to Childcare* - 0.36%
- Asbestos Contribution - 0.002%
Annual costs:
Annual Medical Check - JPY 45,000
*Health Insurance, Pension Insurance, Long Term Care insurance, and Contributions to Childcare are calculated on amounts determined by social insurance and based on the employee’s salary. Please note that social insurance also determines maximum salaries for these contributions, so percentages may vary.
These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.
Overtime Pay & Maximum Hours
Standard working hours are 8 hours per day, 40 hours per week. The standard work week is from Monday to Friday.
Overtime payment is only mandatory if the employee is not an exempt manager. For that case, overtime payment can’t be included in the salary. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 360 hours of overtime per year.
All employees in Japan must track their working hours using Deel's Time & Attendance tool to comply with labor laws. Starting July 1, 2024, Sunday will be the default weekly paid holiday, unless the employer specifies another day.
For additional hours, employees are paid at different rates according to different variables:
Classification
Rate of increase
Work in excess of statutory working hours
25%
Work in excess of statutory working hours exceeding 60 hours in a month
50%
Work on statutory days off
35%
Work late at night (between 10 p.m. and 5 a.m.)
25%
Work late at night in excess of statutory working hours
50%
Work late at night in excess of statutory working hours exceeding 60 hours in a month
75%
Work late at night on statutory days off
60%
Hiring in Japan, hassle-free
With Deel, your business can easily hire employees in Japan with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Japan and 150+ countries.
Management fee
Starting at
$599
/month
Estimated Employer Cost
16.55%
of employee salary