Japan’s hourly minimum wage depends on the region. The highest being 985 Yen in Tokyo and the lowest being 761 Yen in Kagoshima.

Payments are made monthly typically by the 25^th.

Not required by law.

Full time working is considered to be 40 hours weekly, and 8 hours daily.

If an employee exceeds 40 hours a week, the employer is obligated to pay overtime.  If the employee is a manager, they are expected to work overtime and the company is not obligated to pay.

If an employee is expected to work overtime on a regular basis, there must be a written agreement and has to be filed with the Labor Inspection Office.

When employees work overtime or work on holidays, an additional payment to the hourly base salary applies:

• Overtime (typically over 8 hours a day): additional 25%
• Night-time (22:00 – 05:00): additional 25%
• Weekends and Holidays: an additional 35%
• Night-time (continuing from overtime): additional 50%
• Holiday (continuing from night-time): additional 60%

The overtime hours must remain within the following limits in Japan:

• 5 hours per day
• 45 hours per month
• 360 hours per year.

The minimum number of paid vacation days for employees varies based on the length of service: 

• 6 months seniority: 10 days paid vacation earned  
• 1.5 years seniority: 11 days paid vacation earned  
• 2.5 years seniority: 12 days paid vacation earned 
• 3.5 years seniority: 14 days paid vacation earned  
• 4.5 years seniority: 16 days paid vacation earned  
• 5.5 years seniority: 18 days paid vacation earned  
• 6.5 years seniority: 20 days paid vacation earned 

Employees may accumulate up to two years of unused paid vacation.

They are 16 public holidays. While there are no legal requirements to pay for public holidays, it is common to grant those days as paid days off.

If a national holiday falls on a Sunday, the next working day will become a public holiday.

In Japan, there is no mandatory sick leave. When an employee gets sick, they use their paid vacation to take leave of absence.

In Japan, maternity leave is 14 weeks.  This is divided into 6 weeks before the birth and 8 weeks after.  If cleared by a doctor, the woman is able to return to work before the maternity leave expires.   

The woman receives 2/3 of their base salary and is covered by social insurance. 

Male employees who have worked for the same employer for at least a year are entitled to 12 months paid leave.

In Japan, Childcare leave can be taken by the mother or father and starts from the day after the maternity leave ends.  Childcare leave is covered by the labor insurance and an employee is able to take it till the day before the child turns 1 year old.  If both parents take child care leave, the leave is extended to when the child is 1 year and 2 months old.

Family care leave: Unpaid leave to care for a spouse, child, parent or grandparent for up to 3 months.

Work-related injury leave:

Employees receive 60% of daily benefits plus an additional 20% special supplement after a 3-day waiting period. The first three days are paid by the employer.

Contributions to workman’s accident compensation insurance is made by:

• Employee – 0%
• Employer – .25% – 8.8% depending on business.
• Government – Subsidies dependent on needs.

Bereavement Leave:

• Death of a father, mother, spouse, or child: up to five 5 days  
• Death of a grandparent, grandchild, sibling, child’s spouse, or spouse’s parent: up to three 3 days 

When the employee is the person in charge of arranging the funeral service, up to two 2 days of additional leave is added. 

For the first year of a Buddhist memorial service of a deceased parent, spouse or child receives one day leave. 

Under Japanese labor law termination of full-time employees is difficult. Should they not want to leave, employees may dispute and proceed with negotiations generally leading to compensation in the sum of a minimum of one-month salary per year worked. Prior to dismissal 30 days, notice is required.

The employer must provide 30 days’ notice or payment in lieu of the notice period.

There isn’t a statutory severance payment but due to the difficulties of terminating an employee, employers should follow socially acceptable terms.

Probationary periods in Japan typically last 3 to 6 months.

5% standard rate.