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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.
This guide was last updated on 8 April 2025. The content in this guide is current as of this date and based on common business practices.
In Japan, there are generally four types of labour contract (work contract):
Due to amendments to the Enforcement Regulations of the Labour Standards Law, the rules for clearly stating working conditions have been changed from 1st April 2024.
Specifically, new items will be added to the list of items that must be clearly stated when concluding or renewing a labour contract:
At the time of the conclusion of all labour contracts and at the time of renewal of fixed-term labor contracts.
The “scope of change” here refers to the location of employment and job duties that may change due to future reassignment.
In addition, if the renewal limit is established or shortened after the initial labour 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: JPY 1,390,000 | 0.8% Maximum Contribution Base: JPY 1,390,000 |
| Employees’ Pension Insurance | Retirement benefits | 9.15% Maximum Contribution Base: JPY 650,000 | 9.15% Maximum Contribution Base: JPY 650,000 |
| 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: JPY 650,000 | – |
| 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 follows:
| Name of Prefectures | Minimum Hourly Rate | Effective Date |
| Hokkaido | JPY 1,010 | 1 October 2024 |
| Aomori | JPY 953 | 5 October 2024 |
| Iwate | JPY 952 | 27 October 2024 |
| Miyagi | JPY 973 | 1 October 2024 |
| Akita | JPY 951 | 1 October 2024 |
| Yamagata | JPY 955 | 19 October 2024 |
| Fukushima | JPY 955 | 5 October 2024 |
| Ibaraki | JPY 1,005 | 1 October 2024 |
| Tochigi | JPY 1,004 | 1 October 2024 |
| Gunma | JPY 985 | 4 October 2024 |
| Saitama | JPY 1,078 | 1 October 2024 |
| Chiba | JPY 1,076 | 1 October 2024 |
| Tokyo | JPY 1,163 | 1 October 2024 |
| Kanagawa | JPY 1,162 | 1 October 2024 |
| Toyama | JPY 998 | 1 October 2024 |
| Ishikawa | JPY 984 | 5 October 2024 |
| Fukui | JPY 984 | 5 October 2024 |
| Niigata | JPY 985 | 1 October 2024 |
| Yamanashi | JPY 988 | 1 October 2024 |
| Nagano | JPY 998 | 1 October 2024 |
| Gifu | JPY 1,001 | 1 October 2024 |
| Shizuoka | JPY 1,034 | 1 October 2024 |
| Aichi | JPY 1,077 | 1 October 2024 |
| Mieken | JPY 1,023 | 1 October 2024 |
| Shiga | JPY 1,017 | 1 October 2024 |
| Kyoto | JPY 1,058 | 1 October 2024 |
| Osaka | JPY 1,114 | 1 October 2024 |
| Hyogo | JPY 1,052 | 1 October 2024 |
| Nara | JPY 986 | 1 October 2024 |
| Wakayama | JPY 980 | 1 October 2024 |
| Tottori | JPY 957 | 5 October 2024 |
| Shimane | JPY 962 | 12 October 2024 |
| Okayama | JPY 982 | 2 October 2024 |
| Hiroshima | JPY 1,020 | 1 October 2024 |
| Yamaguchi | JPY 979 | 1 October 2024 |
| Tokushima | JPY 980 | 1 November 2024 |
| Kagawa | JPY 970 | 2 October 2024 |
| Ehime | JPY 956 | 13 October 2024 |
| Kochi | JPY 952 | 9 October 2024 |
| Fukuoka | JPY 992 | 5 October 2024 |
| Saga | JPY 956 | 17 October 2024 |
| Nagasaki | JPY 953 | 12 October 2024 |
| Kumamoto | JPY 952 | 5 October 2024 |
| Oifen | JPY 954 | 5 October 2024 |
| Miyazaki | JPY 952 | 5 October 2024 |
| Kagoshima | JPY 953 | 5 October 2024 |
| Okinawa | JPY 952 | 9 October 2024 |
The public holidays in Japan for 2025 are listed below. Please refer to official announcements from the Japanese government for the latest updates.
| 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% |
Japan does not have a statutory probationary period; however, an employment contract may be terminated within 14 days of its commencement.
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 (varies 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 | Varies 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 the time spent 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
Share this guide
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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