Japan

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Currency
JPY
Payroll Frequency
Monthly
Employer Taxes
14.98% - 24.43%

Overview

Capital
Tokyo
Currency
JPY – Japanese Yen
Date format
mm/dd/yyyy

Contributions

Employer

Employer Contribution Towards Social Security : 14.685 – 16.63%

Employee

Employees’ Contribution Towards Social Security : 14.35 – 15.69%

Income Taxes
Up to 1,950,000 JPY 0%
Between 1,950,000 JPY and 3,300,000 JPY 10%
Between 3,300,000 JPY and 6,950,000 JPY 20%
Between 6,950,000 JPY and 9,000,000 JPY 23%
Between 9,000,000 JPY and 18,000,000 JPY 33%
Between 18,000,000 JPY and 40,000,000 JPY 40%
Greater than 40,000,000 JPY 45%

 

Minimum Wage

General

The National Minimum Wage in Japan is based on Prefecture. The minimum hourly wage for Tokyo is 985 JPY, Osaka is 936 JPY, and Kyoto is 882 JPY.

Payroll

Payroll Cycle

Monthly

13th Salary

In Japan, it is customary to pay a “13th month,” or even “14th-month” salary as a summer bonus paid in June and as a winter bonus paid in December.

Working Hours

General

40 hours a week or eight hours a day. However, some businesses are allowed up to 44 hours a week with a maximum of eight hours a day.

Overtime

Leave & Public Holidays

Paid Time Off

6 months of service – 10 days of annual leave
18 months of service – 11 days of annual leave
2.5 years of service – 12 days of annual leave
3.5 years of service – 14 days of annual leave
4.5 years of service – 16 days of annual leave
5.5 years of service – 18 days of annual leave
6.5 years of service – 20 days of annual leave

Public Holidays

New Year’s Day
Coming of Age Day
National Foundation Day
The Emperor’s Birthday
Vernal Equinox Day
Showa Day
Constitutional Memorial Day
Greenery Day
Children’s Day
Marine Day
Health Sports Day
Mountain Day
Respect for the Aged Day
Autumnal Equinox Day
Culture Day
Labor Thanksgiving Day

Sick Days

Maternity / Paternity Leave

Maternity Leave

Japan has 14 weeks of maternity leave, of which six weeks can be taken before childbirth and eight weeks after the child is born.

Paternity Leave

Fathers are allowed to take paternity leave for a year, in two installments. The first of these may start within eight weeks of birth. Bereavement or condolence leave is five days.

Parental Leave
Other Leave

Termination

Termination Process

The employer must show that it has taken all reasonable steps to avoid terminating the employ like giving the employee warnings, documenting negative performance reviews, showing that it has offered training and explored other options and other steps less than termination.

Japanese law does permit termination due to the need to downsize because of economic conditions. In this situation, the employer must be able to show the following:

The economic conditions make the downsizing necessary
The company has tried all reasonable steps to avoid termination
The employees selected for termination were selected in a fair and reasonable manner

When an employer has made a decision to terminate an employee, it must provide at least 30 days’ advance notice or pay the employee’s salary for this notice period if it does not provide the required notice.

Notice Period

It is customary for employees to also give 30 days’ notice of resignation, but the statutory minimum is two weeks.

Severance Pay
Probation Period

VISA

General
Visa Category Explanation Duration
Working Visa The Working Visa in Japan is meant for professionals such as professors, researchers, artists, etc. It grants the bearer authorization to work in Japan for a fixed period. Between 3 months and 5 years
Highly Skilled Professional Visa This visa is meant for overseas professionals who have highly specialized skills. You cannot get this visa if you do not have either a job or a job offer from an employer in Japan. It provides the bearer certain privileges over the regular work visa that is offered in Japan. 5 years
General Visa The Japanese general visa is meant for visitors who wish to engage in cultural activities in Japan. Before you get the visa, a certificate of eligibility needs to be issued authorizing you to land in Japan. 3 months, 6 months, 1 year, or 3 years
Business Visa A Business Visa can be issued to you if you are visiting Japan for market surveys, conferences, business talks, contract signing, or business liaison. There are certain seniority criteria that you also need to meet to be eligible for a business visa. 90 days

VAT

General

The standard rate of VAT in Japan is 5.00%.

Date of Updates
8/19/2022

Why AYP

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