HR & Labor
The minimum wage is 780JPY per hour.
The employer contributes 8.56%.
The employee contributes 8.56% to the pension fund. The cap for monthly salary is 635,000 YEN or more.
No legal requirement
Advance notice is one month.
Under Japanese labor law termination 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.
Officially none. Ill employees tend to use their vacation days.
There are 14 public holidays.
No legal requirement for first 6 months, following employees are allotted 10-12 days with an additional day for each year employed by the company.
Additional Employee Withholdings
1) Employment Insurance
2) Health Insurance
1) Employer contributes 0.85%.
2) Employer contributes 4.99%.
1) Employee contributes 0.5%.
2) Employee contributes 4.99%
Japanese companies offer expat benefits such as accommodation allowance, international schools for the children of expats, utilities, transportation and etc. Benefit packages vary from company to company. Foreign employees on short-term assignments (less than 12 months)
For a non-resident (present in Japan for less than one year) the national tax is 20% flat rate without any deductions. Residence tax is generally not imposed on a non-resident individual.
Please note, that in order to be considered a non-resident, the foreign employee needs to sign an employment agreement for a period of less than 1 year.
VAT is 5% standard rate.
Non-Resident Tax: Foreign employees on short-term assignments (less than 12 months) are required to pay a national tax of 20% flat rate. To be considered a non-resident the foreign employee must sign an employment agreement for a period of less than 1 year.
Earthquake Reconstruction Tax
A rate of 2.1% of the national income tax that applies to both resident and non-resident tax payers
In Japan residence tax are levied on taxable income. The residence tax rate is a flat rate of 10% and it includes Prefectural Residence Tax (4% of taxable income) and Municipal Residence Tax (6% of taxable income.