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Japanese Yen (JPY)
Japanese
Tokyo
Embark on your business expansion in Japan with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.
As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the Japan market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.
In Japan, there are generally four types of labour contract(work contract):
Due to amendments to the Enforcement Regulations of the Labor Standards Law, the rules for clearly stating working conditions have been changed from 1st of April 2024. Specifically, new items will be added to the list of items that must be clearly stated when concluding or renewing a labor contract:
The “scope of change” here refers to the location of employment and job duties that may change due to future reassignment.
Explicit item b: Existence and details of renewal limits (total contract period or maximum number of renewals)
In addition, if the renewal limit is established or shortened after the initial labor contract is signed, the reason for the change must be explained to the worker in advance.
Employees’ Pension Insurance enrolls employees; National Pension System enrolls people who are not eligible for Employees’ Pension Insurance.
Type | Details | Employer Contribution | Employee Contribution |
Health Insurance – for employee under 40 years of age | Medical benefits | 4.955% Rates vary by prefectures | 4.955% Rates vary by prefectures |
Nursing Care Insurance – for employees over 40 years of age | Medical benefits | 0.8% Maximum Contribution Base: 1,390,000 JPY | 0.8% Maximum Contribution Base: 1,390,000 JPY |
Employees’ Pension Insurance | Retirement benefits | 9.15% Maximum Contribution Base: 650,000 JPY | 9.15% Maximum Contribution Base: 650,000 JPY |
Workers’ Compensation | Unemployment security | Rates vary by industries, 0.25%-11.8% | – |
Employment insurance | Work injury benefits | 0.95% | 0.6% |
Child Care Insurance | Childcare allowance | 0.36% Cap: 650,000 JPY | – |
Total of above | About 16.5-28% | About 15.5% |
The statutory minimum wage of Japan had been adjusted and taken effect from October 2024 as following:
Name of Prefectures | Minimum Hourly Rate | Effective Date |
Hokkaido | 1,010 JPY | 1 October 2024 |
Aomori | 953 JPY | 5 October 2024 |
Iwate | 952 JPY | 27 October 2024 |
Miyagi | 973 JPY | 1 October 2024 |
Akita | 951 JPY | 1 October 2024 |
Yamagata | 955 JPY | 19 October 2024 |
Fukushima | 955 JPY | 5 October 2024 |
Ibaraki | 1,005 JPY | 1 October 2024 |
Tochigi | 1,004 JPY | 1 October 2024 |
Gunma | 985 JPY | 4 October 2024 |
Saitama | 1,078 JPY | 1 October 2024 |
Chiba | 1,076 JPY | 1 October 2024 |
Tokyo | 1,163 JPY | 1 October 2024 |
Kanagawa | 1,162 JPY | 1 October 2024 |
Toyama | 998 JPY | 1 October 2024 |
Ishikawa | 984 JPY | 5 October 2024 |
Fukui | 984 JPY | 5 October 2024 |
Niigata | 985 JPY | 1 October 2024 |
Yamanashi | 988 JPY | 1 October 2024 |
Nagano | 998 JPY | 1 October 2024 |
Gifu | 1,001 JPY | 1 October 2024 |
Shizuoka | 1,034 JPY | 1 October 2024 |
Aichi | 1,077 JPY | 1 October 2024 |
Mieken | 1,023 JPY | 1 October 2024 |
Shiga | 1,017 JPY | 1 October 2024 |
Kyoto | 1,058 JPY | 1 October 2024 |
Osaka | 1,114 JPY | 1 October 2024 |
Hyogo | 1,052 JPY | 1 October 2024 |
Nara | 986 JPY | 1 October 2024 |
Wakayama | 980 JPY | 1 October 2024 |
Tottori | 957 JPY | 5 October 2024 |
Shimane | 962 JPY | 12 October 2024 |
Okayama | 982 JPY | 2 October 2024 |
Hiroshima | 1,020 JPY | 1 October 2024 |
Yamaguchi | 979 JPY | 1 October 2024 |
Tokushima | 980 JPY | 1 November 2024 |
Kagawa | 970 JPY | 2 October 2024 |
Ehime | 956 JPY | 13 October 2024 |
Kochi | 952 JPY | 9 October 2024 |
Fukuoka | 992 JPY | 5 October 2024 |
Saga | 956 JPY | 17 October 2024 |
Nagasaki | 953 JPY | 12 October 2024 |
Kumamoto | 952 JPY | 5 October 2024 |
Oifen | 954 JPY | 5 October 2024 |
Miyazaki | 952 JPY | 5 October 2024 |
Kagoshima | 953 JPY | 5 October 2024 |
Okinawa | 952 JPY | 9 October 2024 |
The Public Holidays in Japan in 2025 (Reiwa 7) is shown as following. Please refer to the announcement of cabinet office, government of Japan.
Holiday Name | Date |
New Year’s Day | 1 January 2025 |
Coming of Age Day | 13 January 2025 |
National Day | 11 February 2025 |
Emperor’s Birthday | 23 February 2025 |
Emperor’s Birthday Holiday | 24 February 2025 |
Spring Equinox | 20 March 2025 |
Shōwa Day | 28 April 2025 |
Constitution Memorial Day | 3 May 2025 |
Greenery Day | 4 May 2025 |
Children’s Day | 5 May 2025 |
Greenery Day Holiday | 6 May 2025 |
Sea Day | 21 July 2025 |
Mountain Day | 11 August 2025 |
Respect for the Aged Day | 15 September 2025 |
Autumn Equinox | 23 September 2025 |
Health and Sports Day | 13 October 2025 |
Culture Day | 3 November 2025 |
Labour Thanksgiving Day | 23 November 2025 |
Labour Thanksgiving Day | 24 November 2025 |
Normal working hour from 8.30am to 5.00pm, with one-hour lunch break
8:30AM – 5:00PM | 5:30PM | 10:00PM – 5:00AM | ||
7.5H | 0.5H | 4.5H | 7H | |
Regular Hours | Overtime within Regular Hours | Overtime beyond Regular Hours | Overtime beyond Regular Hours + Night Work | |
Overtime Rate: 125% | Overtime Rate: 150% |
From 8.30am to midnight
9:00AM | 10:00PM – 12:00AM |
12H | 2H |
Work on Days Off | Overtime beyond Regular Hours + Night Work |
Overtime Rate: 135% | Overtime Rate: 160% |
Statutory leaves in Japan include:
Type | Applicable to | Details |
Paid Annual Leave | Employees who have served continuously for 6 months or more and have been worked at least 80 % attendance of total working days in their continuous service | 10-20 days(Vary by work hours, service year) |
Pregnancy and Maternity Leave | Female Employees | Pre-natal leave: 6 weeks (multiple births: 14 weeks) + post-natal leave:8 weeks(2/3 of ordinary daily rate)+ Antenatal check-up leave |
Child Care Leave | Employees who have served for one year and have been working two days or more every week | One year (not fully paid, until child reaches one year old) |
Breast Feeding Leave | Female Employees with child ≤ one year of age | Twice, 30 minutes per each (unpaid) |
Menstruation Leave | Female Employees | According to the situation (unpaid) |
Family Care Leave | All Employees | 5-93 days (could be unpaid if not specific in the work rule) |
Sick Child Leave | All employees whose children are under school age,effective from 1st of April, 2025, it is applicable to employees whose children are under grade 3 | Vary by number of children |
• One child: 5 days | ||
• Two or more children: 10 days | ||
Leave for Civil Rights and Public Duty | All Employees | According to time on voting or performing public duties |
Termination by the employer
30 days, with proper preparation 3 months in advance. Because it is almost impossible to dismiss employees in Japan.
Resignation by the employee
Most companies in Japan will set up a one-month notice period for the employee and such term would be stated in the duly signed labour contract (work contract).
The compensation is paid according to the mutual agreement signed between the employee and the employer.
BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.
As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:
Services may vary across countries.
Unlock your growth potential with BIPO’s Employer of Record service in Japan. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance.
From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities
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An Employer of Record (EOR) is a partner company that acts as the official employer for your employees.
An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.
As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).
By engaging BIPO as your EOR, your business benefits from:
A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:
A global EOR enables businesses to fast-track their market entry into international market, and reduce the complexities of setting up multiple foreign entities.
When you partner with BIPO, we take on the the day-to-day administrative tasks, while you maintain full control of the business and delegate HR workflows and hiring needs.
Our vast network of business partners across 170+ markets globally supports your business expansion plans, with in-country HR experts providing localised support. Going global has never been easier!
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