Business · Employer of record
Employer of record in Japan
Employing someone in Japan through an employer of record: five social insurance schemes, regional minimum wages, paid leave that grows with service, 30 days' notice, and why dismissal needs objectively reasonable grounds.
Checked on 16 October 2026. The headline rules for a standard employee, from official sources where they opened and law firm, PwC or specialist publisher guides where they didn't; each line names its source. Sectors, collective agreements and contracts can change them. This is general information, not legal advice.
Know this first
- Dismissal is hard: one without objectively reasonable grounds, or not appropriate in general social terms, is invalid.
- Costs step up at 40, when long-term care insurance starts.
- The official page doesn't say who pays the 0.36% child-rearing contribution, and the accident insurance rate for office work didn't open for us.
Sources: Labour Contracts Act (Japanese Law Translation), Kyokai Kenpo, 2026 health insurance rates
Employing someone in Japan
- Employer costs on top of salary
- About 15% of pay in Tokyo, by our sum, or about 15.9% for staff aged 40 to 64: half of health insurance (9.85% in Tokyo for 2026; it varies by prefecture), half of the new 0.23% child support levy from April 2026, half of the 18.3% pension, and 0.85% employment insurance, plus half of the 1.62% long-term care insurance for staff aged 40 to 64. Accident insurance and a 0.36% child-rearing contribution come on top. Health contributions stop at monthly pay of ¥1,390,000 and pension at ¥650,000. Kyokai Kenpo, 2026 health insurance rates, Japan Pension Service, pension contributions, September 2026, Kaiketsu, employment insurance 2026, March 2026, Japan Pension Service, child-rearing contribution, April 2026
- Minimum wage
- Set by prefecture, per hour. Tokyo: ¥1,280 from 1 October 2026. The national average is ¥1,177, and the new rates take effect between 1 October and 2 December 2026. Tokyo Labour Bureau, September 2026, Ministry of Health, Labour and Welfare, September 2026
- Holiday
- 10 days after 6 months (with 80% attendance), rising to 20 days after 6.5 years. 16 national holidays in 2026, but we found no rule that private employers must give them off. Labour Standards Act (Japanese Law Translation), Cabinet Office, national holidays
- Working hours
- 40 hours a week and 8 a day. Overtime needs an agreement with the staff (an "Article 36 agreement"). Labour Standards Act (Japanese Law Translation), Tokyo Labour Bureau, working conditions
- Probation
- We found no legal maximum. Someone on probation can be let go without notice only in their first 14 days; after that, normal notice applies. Labour Standards Act (Japanese Law Translation)
- Notice from the employer
- 30 days, or 30 days' average pay instead, whatever the length of service. Labour Standards Act (Japanese Law Translation)
- Severance
- We found no legal requirement; retirement allowances are set by the contract or work rules. A dismissal without objectively reasonable grounds is invalid. Labour Contracts Act (Japanese Law Translation), JETRO, rules of employment
- Extra pay the law requires
- We found no legal requirement for bonuses, though they're customary, often twice a year; they become binding through the contract or work rules. JETRO, sample employment agreement
- Contract
- The employer must set out pay, hours and other working conditions at hiring, with pay in writing. Employers with 10 or more staff need work rules filed with the labour office. We found no rule on language. Labour Standards Act (Japanese Law Translation), Tokyo Labour Bureau, working conditions
- Payroll and tax
- Pay at least monthly, on a fixed date. Income tax is withheld from pay and settled at the end of the year (the year-end adjustment). Labour Standards Act (Japanese Law Translation), National Tax Agency, year-end adjustment
- Sick pay
- We found no legal duty on the employer to pay sick pay; health insurance has its own sickness benefit, which we didn't check.
Providers and what they say about Japan
What each provider's own website says about Japan, in order of its published starting price. None of them publishes a separate price for Japan; the starting prices are worldwide or regional (Papaya quotes EUR 650 in Europe), and what you pay is set by quote.
| Provider | Covers Japan? | What it says | Starting price a month | |
|---|---|---|---|---|
| Skuad | Yes, on its own site | Listed in its coverage list | From USD 199 | Go to Skuad |
| Pebl (formerly Velocity Global) | Not stated | - | USD 399 | Go to Pebl (formerly Velocity Global) |
| Multiplier | Has its own page for it | - | From USD 459 (annual), USD 499 monthly | Go to Multiplier |
| Deel | Yes, on its own site | Says it has its own entity | From USD 599 | Go to Deel |
| Remote | Yes, on its own site | Says it has its own entity; its terms also name another firm | From USD 599 | Go to Remote |
| G-P (Globalization Partners) | Yes, on its own site | - | From USD 599 | Go to G-P (Globalization Partners) |
| Atlas HXM | Yes, on its own site | - | From USD 599 | Go to Atlas HXM |
| Papaya Global | Not stated | - | From USD 650 (EUR 650 in Europe) | Go to Papaya Global |
| Oyster | Yes, on its own site | - | From USD 699 | Go to Oyster |
| Rippling | Not stated | Says 80 countries, with no list | Quote only | Go to Rippling |
Coverage is each company's own claim, from its country pages and coverage lists; we haven't checked how each one employs there. Ask whether it uses its own company or a partner in Japan.
Other countries
Employer costs, leave, notice, severance and the catches, with the providers that cover each one.
United KingdomIrelandGermanyFranceNetherlandsSwedenSwitzerlandBelgiumSpainPortugalItalyPolandRomaniaCanadaAustraliaSingaporeIndiaPhilippinesSouth AfricaMexicoBrazilColombiaChileArgentina
All 25 countries side by side: employer cost at your salary, holiday, notice and redundancy pay