Japan offers a deep, highly skilled workforce with a strong emphasis on job security and a shared social-insurance system. All-in employer cost runs around 1.16x the gross salary. Here is what to know before your first Japanese hire.
Employment runs under the Labour Standards Act and related laws, with work rules required for larger workplaces and mandatory enrolment in health, pension, and labour insurance. Dismissal is difficult and must be objectively reasonable.
Employer social-insurance contributions add roughly 15-16% on top of salary across health, pension, and labour insurance.
Health and pension contributions are split roughly evenly with the employee and apply up to monthly standard-remuneration grades.
Employees pay national and local income tax plus their insurance share, withheld at source with a year-end adjustment. Withholding is the employer's responsibility, which under EOR means ours.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant Japanese employment contract, payroll, and social insurance, handled. One invoice, flat $499 per month.