Hire in Japan effortlessly with an EOR partner

An Employer of Record (EOR) is your one-stop solution to employ and manage workers efficiently in Japan! Your Employer Of Record (EOR) takes care of:

Leading enterprises across all industries rely on us

Facts & stats about working in Japan


Salary payment currency

English / Japanese

Contract language


Working hours per week

Differ across regions

Min. hourly salary


Employer cost


Bank holidays per year

1st April - 31st March

Tax cycle


Employee tax

Employ staff in Japan hassle-free with EOR

The all-in-one guide to hiring in Japan

Contracts & Agreements

Compensation & Benefits

Taxes & Costs

Termination & Severance

Contracts & Agreements

In Japan, employment agreements are based on a written contract between employer and employee. This contract needs to be drafted in a language that both parties understand, which is usually English or Japanese.


A Seishain is the legal title of a regular, full-time employee in Japan. This contract is the most coveted since it is long term, offers job security, and provides benefits which are mandated by labor laws.

Keiyaku shain

A Keiyaku shain is a fixed-term, limited contract, which is usually between one month and one year in duration. If an employee is under the age of 60 then the maximum period of employment is 3 years.
The benefits given under a Seishain contract also apply to a Keiyaku Shain except for unemployment insurance which has partial coverage.

Haken shain

Employees that aren't directly hired by a company, but rather, through an employing agency (dispatch) are covered by a Haken shain. The contracts are usually temporary due to the requirement of the company but can also be for longer periods of 1 year or more.
With An EOR solution, your employees sign a legal contract with the Employer Of Record while they share a normal working relationship with you.

Compensation & Benefits

Minimum Pay

There is no fixed minimum wage all across Japan. The minimum hourly wage varies from ¥896 in the Okinawa prefecture to ¥1,113 in the Tokyo prefecture.

Payout Cycle

Companies in Japan generally follow a monthly payroll cycle even though it is not a statutory requirement. A common date for employees to receive salary is on the 25th, although ultimate discretion is with the employer.

Working Hours

Japan has a 40-hour workweek or 8-hour workday - excluding a break. Breaks can vary in duration from 45 minutes to 1 hour for employees who have worked for at least 6 hours. Overtime is regulated through employment & collective agreements as well as the Labour Standards Act. Employees in managerial and supervisory positions are typically exempt from receiving overtime.

Guaranteed Benefits

Ask us for a Salary Benchmark for your EOR worker.

Your one-stop solution to all your HR tasks: Employer of Record (EOR)

Taxes & Costs

Tax for Employees

Employees have to pay income tax ranging from 5% to 45%, depending on their income bracket:
Taxable income band (JPY) National income tax rate
Up to 1.95M JPY
1.95M JPY - 3.3M JPY
3.3M JPY - 6.95M JPY
6.95M JPY - 9M JPY
9M JPY - 18M JPY
18M JPY - 40M JPY
Over 40M JPY

Employer Cost

Employers in Japan are obliged to contribute to various funds, and this can range from 15.76% to 16.67%. Here’s a breakup of the these contributions:
Fund Contribution
Public Health InsurancePension
Health Insurance
5% - 5.91%
Unemployment Insurance
Works Accident Insurance
Family Allowance/Child Benefits Contribution
Ask us for a Gross to Net simulation or a Total Employment Cost calculation for your EOR worker.


Every employee working in Japan is provided different types of leaves throughout the year. These include:

Annual Leave

Employees who have spent six months in an organization will get ten days off annually. Employees receive a leave increase of one day per year, for each subsequent year, until they reach the maximum of 20 day’s paid annual leave. Annual leave that is not used within two years of it being earned will expire.

Sick Leave

Employees do not have a right to sick leave in Japan. When an employee gets sick, they are expected to use their paid vacation days to take a leave of absence. Employers may also offer a sick leave benefit as part of company policy.

Maternity & Parental Leave

Expecting mothers in Japan can take maternity leave for a total of 14 weeks: 6 weeks before the estimated due date until 8 weeks after giving birth. During this leave, the employees will get approximately ⅔ of their base salary, which is non-taxable, typically paid by social insurance. If the company decides to continue paying the employee during this period, the amount of compensation from the social insurance office will be reduced.
Both male and female employees are eligible for childcare leave until the day before their child’s first birthday. Each employee will receive 67% of their normal base salary for the first 6 months and 50% for the rest of the leave. The compensation is covered by labor insurance, and the employee won’t be charged income tax because it is not income.
In addition to these leaves, employees are provided 16 days of public holidays. For a full list of leaves and public holidays that your new hire in Japan is entitled to, talk to one of our experts .

Termination & Severance


Termination in Japan is complex due to cultural norms and a common acceptance that employees should have long term jobs. If a termination occurs, best practice is for a seperation under a mutual agreement and with additional compensation paid to an employee. It is important for an employer to monitor performance during any stipulated probation period.

Severance Pay

As far as severance pay is concerned, no statutory regulations exist, but most organizations offer full salaries during the notice period. However, employees can go to the Labor Tribunal for dismissals they deem unfair.

Ready to expand your business across multiple countries in the APAC region?​

Why choose an Employer Of Record (EOR)
in Japan?

An Employer Of Record (EOR) solution is relevant for multiple use cases:

Why trust BGC as your Employer Of Record (EOR)?

Industry Expertise

Since 2005, BGC has an extensive experience and proven track record of earning the trust of numerous clients.

Technology Leverage

Streamline operations with advanced technology which result in quicker time to onboard and pay.

Cost-effective pricing

Transparent and affordable monthly pricing that allows you to scale your workforce without any hassles.

Talk to us and make hiring in APAC a breeze!

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