Japan

Last Update by Federico, 28 Nov 2024

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Exchange Rate

22 Jan 2025

 

Cost of Living

Indicative value for a working adult in a city: Tokyo

Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff

Living Requirement Indicative Amount (JPY)
McDonalds Set Meal 800
Monthly Train and Bus Tickets 6,800
3 Bedrooms Rental (City Center) 394,310
3 Bedrooms Rental (Outskirt) 164,500

Current Inflation Rate

2.6%

Wage

Minimum Wages

  • 1,004 JPY per hour
    Wages vary depending on other regions

Median Salary

Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.

Job Level Monthly Salary (JPY)
Entry-Level
Fresh Graduate
 200,000
Mid-Level
5 Years
 300,000
Experienced & Managerial Level
10 Years
 650,000
Specialized & Senior-Level
15 Years
 1,000,000

Annual Salary Growth

2.5%

Statutory Contribution

All Social Security and withholding tax should be paid by employer at the end of each month. Employers pays the social security contributions to the National Health Insurance and Employee Pension Insurance and the income tax to the National Tax Agency. The annual social security report should finish in July each year.

Country Level

Type Employer Rates Employee Rates Notes
Employees' Pension Insurance 9.15% 9.15% All staff capped on monthly earnings of up to 650,000 JPY
Health Insurance and Nursing Care Insurance 4.99%
(6.57% if aged 40 or over) 		4.99%
(6.57% if aged 40 or over) 		All staff capped on monthly earning of up to 1,390.000 JPY
Employment Insurance 0.95% 0.6% All staff
Workers' Accident Compensation Insurance 0.25% - 8.8% - All staff
Child Benefits Contribution 0.36% - All staff

Other Benefit

Other common employment benefits in Japan include:

  • 13th month payment (referred to as Summer Bonus)
  • 14th month payment (referred to as Winter Bonus)

Income Tax

Residents

  • Tax period: 1st January - 31st December of the previous year
    Tax filing start date: Mid-February of the following year
    Tax filing due date: Mid-March of the following year

Country Level

Taxable Income Rate
0 – 1,950,000 5%
1,950,000 - 3,300,000 10%
3,300,000 - 6,950,000 20%
6,950,000 - 9,000,000 23%
9,000,000 - 18,000,000 33%
18,000,000 - 40,000,000 40%
> 40,000,000 45%

Non-residents

  • Flat rate of 20.42%.

Working Hours

Statutory

40 hours
8 hours -a day, 5 days a week

Typical practice

40 Hours
Monday - Friday

Overtime

Up to 5 hours per day, 45 hours per month, 360 hours per year

  • Monday till Friday/Night (22:00-5:00): 1.25 of hourly regular pay
  • Weekend and Public Holidays: 1.35 of hourly regular pay
  • Night work on public holidays: 1.6 of hourly regular pay

Employment Contract

Permanent (Seishain 正社員)

Contract Format

Written, in Japanese. Bilingual contracts in languages mutually understood by both parties are accepted and issued to staff on the first day of service

Payroll Currency

JPY

Probation

Usually 3 - 6 months

Contract Period

No minimum duration

Termination

In Japan the termination process adheres to the following rules:

  Voluntary Resignation Involuntary Termination Economic Layoff
Notice Period - Probation - No notice - No notice - No notice
Notice Period - Regular - 30 days notice - 30 days notice - 30 days notice
Severance Pay - None required - None required - None required

Public Holiday

16 days

Country Level

Date Name
01 Jan - 03 Jan New Year's Day
13 Jan Coming of Age Day
11 Feb National Foundation Day
23 Feb - 24 Feb Emperor's Birthday
20 Mar Spring Equinox
29 Apr Shōwa Day
03 May - 04 May Constitution Memorial Day
05 May Children's Day
06 May Greenery Day
21 Jul Sea Day
11 Aug Mountain Day
15 Sep Respect for the Aged Day
23 Sep Autumn Equinox
13 Oct Sports Day
03 Nov Culture Day
23 Nov - 24 Nov Labor Day

Leave

Leave Type Entitlement Notes
Annual Leave up to 20 days
0.5 years – 10 days
1.5 years – 11 days
2.5 years – 12 days
3.5 years – 14 days
4.5 years – 16 days
5.5 years – 18 days
>6.5 years – 20 days 		All staff with 6 months' service present for at least 80% of working hours
Maternity leave 14 weeks
6 weeks before the birth, 8 weeks after 		All expectant mothers
Sick Leave Staff can used their annual leave towards sick days All staff
Paternity leave 4 weeks All expectant fathers after the birth of the child.
Marriage leaves 5 working days All staff
Compassionate/Bereavement leave 5 working days All staff

Reference

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