Overview

Capital
Tokyo
Currency
Yen
Date Format
yyyy-mm-dd; yyyy年m月d日; era yy年m月d日

calendar icon Public holidays calendar

Taxes

Employer
7.00% - Employment Insurance
4.98% - 5.77% - Health Insurance
8.91% - Pension Insurance
0.25% - 10.8% - Worker Accident Compensation Insurance
Employee
0.40% - Employment Insurance
4.98% - 5.77% - Health Insurance
8.91% - Pension Insurance
0.00% - Up to 1.95M
10.00% - 1.95M - 3.3M
20.00% - 3.3M - 6.95M
23.00% - 6.95M - 9M
33.00% - 9M - 18M
40.00% - 18M - 40M
45.00% - Over 40M

Termination

Termination Process
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 dissmissal 30 days notice is required.
Advance Notice
Advance notice is one month.
Severance Pay
No severance pay is required unless the notice provided was inadequate. When such is the case, payment in lieu is required.

Minimum Wage

General
848 JPY hourly

Working Hours

General
Full time working is considered to be 40 hours weekly, and 8 hours daily.
Overtime
Wages during overtime hours must be paid at 125%-150% of regulaer wages. There is no statue on number of ovetime hours worked

VAT

General
5% standard rate.

Payment

Payroll Frequency
Salaries are paid on a monthly basis. Payday is the 25th of every month.

Mandatory Benefits

Pension Fund
Employee monthly contribution is 16,340 JYP from April 2018-March 2019
Social Security
Social security in Japan inlucdes health insurance, nursing care insurnace, pension insurance, employment insurance and workmens accident compensation insurance.
Residence Tax
Residence tax is levied on the individual the following year based on the previous years income and deducted on a monthly basis. Thus it will begin to be levied from second calendar year in Japan and will be based on the previous years income at about 10%.