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Country Guide
Japan Info
Population
Capital
Offical language(s)
Currency
Date format
Fiscal year
Employer Responsibilities
In Japan, strict local legislation requires adherence to the following:
- A Minimum Wage that varies by region, ranging between JPY 761 and JPY 985
- A minimum entitlement of 10 days’ vacation per year
- Payment of bonuses twice per annum, although this is customary rather than legally mandated
A brief guide to hiring in Japan
How is payroll managed in Japan?
In Japan, salaried employees typically receive bonus payments twice a year, in June and December. While these bonuses are not mandatory, they are strongly expected by local professionals.
It’s common for employers in Japan, especially in Tokyo and other major cities, to provide Travel Allowances to employees to help cover or offset commuting costs.
What are the key employment regulations?
After six months of employment, employees must be offered a minimum of 10 days of paid vacation. This entitlement increases with service duration: 11 days after 1.5 years, 12 days after 2.5 years, 14 days after 3.5 years, 16 days after 4.5 years, 18 days after 5.5 years, and 20 days after 6.5 years or more.
What should be considered when dismissing an employee?
Terminating an employee in Japan demands strict adherence to legal procedures. Employees can challenge their dismissal, often resulting in a settlement payment. It is advisable to consult with one of our employment experts before initiating a termination process.
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