Employer of Record in Japan

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Compensation and Benefit

Wages

The National Minimum Wage in Japan is based on Prefecture. The minimum hourly wage for Tokyo is 985 JPY, Osaka is 936 JPY, and Kyoto is 882 JPY.

Working Hours

40 hours a week or eight hours a day. However, some businesses are allowed up to 44 hours a week with a maximum of eight hours a day.

Public Holidays

Sick Leave

Employees are not entitled by law to sick leave and it will depend on the employer's sole discretion.

Maternity Leave

Pregnant employees are entitled to 14 weeks of paid leave.6 weeks must be taken before the child's birth. The employee will receive 2/3 of the salary during this period, and Social Security will be responsible for this pay.

Paternity Leave

There is no paternity leave currently required by law.

Family Leave

Employees are entitled to 12 months of parental leave,including maternity/paternity leave.Both parents can decide how to distribute the time off,which should be 8 weeks after paternity and maternity leave. Either parent can take parental leave. Social security will pay 67% of the salary during this period for the first 180days and then 50%for the remaining days.

Parental can be extended up to 2 years for at 50% pay.

Healthcare

Public Health Insurance: 4.9%

Pension insurance: 9.15%

Unemployment insurance: 0.60%

Long Term Care insurance (over 40 only): 0.90%

Workers Compensation Insurance: 0.30%

Childcare Allowance: 0.36%

Social Security

Employee injury insurance

Unemployment insurance

Health insurance, nursing insurance

Endowment insurance

Tax

Employer Rate

Employer Contribution Towards Social Security : 14.685 – 16.63%

Employee Rate

Employees’ Contribution Towards Social Security: 14.35 – 15.69%

14.35 – 15.69%

Individual Income Taxe Rate

Up to 1,950,000 JPY0%

Between 1,950,000 JPY and 3,300,000 JPY10%

Between 3,300,000 JPY and 6,950,000 JPY20%

Between 6,950,000 JPY and 9,000,000 JPY23%

Between 9,000,000 JPY and 18,000,000 JPY33%

Between 18,000,000 JPY and 40,000,000 JPY40%

Greater than 40,000,000 JPY45%

VAT Rate：The standard rate of VAT in Japan is 5.00%.

retire

Retirement Age

69.95

Policy of Termination & Severance

In Japan, there are no statutory requirements for severance payments During the notice period,the employee will receive standard salary wages.

Main Types of VISAs

Visa CategoryExplanationDurationWorking VisaThe Working Visa in Japan is meant for professionals such as professors, researchers, artists, etc. It grants the bearer authorization to work in Japan for a fixed period.Between 3 months and 5 yearsHighly Skilled Professional VisaThis visa is meant for overseas professionals who have highly specialized skills. You cannot get this visa if you do not have either a job or a job offer from an employer in Japan. It provides the bearer certain privileges over the regular work visa that is offered in Japan.5 yearsGeneral VisaThe Japanese general visa is meant for visitors who wish to engage in cultural activities in Japan. Before you get the visa, a certificate of eligibility needs to be issued authorizing you to land in Japan.3 months, 6 months, 1 year, or 3 yearsBusiness VisaA Business Visa can be issued to you if you are visiting Japan for market surveys, conferences, business talks, contract signing, or business liaison. There are certain seniority criteria that you also need to meet to be eligible for a business visa.90 days

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