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Japanese Yen is the official currency of Japan. Its currency symbol is ¥, JPY.
Estimated at 16.2% of employees salary
Japanese is the official language, with 99.2% of people speaking it as their first language.
The population of Japan is 125.7 million
Salaries are paid monthly. It is customary that employers pay a 13th and 14th month salary.
To start growing your team in Japan, you must establish a local entity- including an account with a local bank, a local office and an address registered as a subsidiary. This
allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months.
Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.
Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.
Japan is one of the most technologically advanced countries in the world. The Japanese people are known for their work ethic and discipline.
The Japanese economy has been growing steadily for the past few decades, but it has slowed down recently due to an aging population and declining birth rates. Japan’s
GDP per capita is $38,000, which is higher than that of many other developed countries.
The Japanese government has been trying to encourage entrepreneurship by providing tax incentives to startups and small businesses. However, there are still challenges
such as a lack of venture capital funding for startups and difficulties in finding skilled workers in certain industries like construction or manufacturing.
Japan is a country that has a lot to offer for remote workers. It has a high quality of life, low crime rates, and it is one of the safest countries in the world.
Additionally, many top Japanese companies adhere to a “good workplace” philosophy. This means that employees are treated fairly and with dignity, and that there is a strong
sense of team spirit. This makes it a great option for those who value flexibility, collaboration and a strong work-life balance.
Japan is a great option for remote workers. All of these factors make Japan a great option for remote workers to avoid the hassles and stresses of office life.
Start growing your remote workforce now
| Pension (applied on salary up to 650,000 JPY per month): | 9.15% |
| Health Insurance (applied on salary up to 1.39 million JPY per month): | Each region has its own health insurance rate, and rates are slightly higher for individuals between the ages of 40 and 65 (generally 1.57%). 4.99% |
| Unemployment Insurance: | 0.65% |
| Nursing Care Insurance (applied on salary up to 1.39 million JPY per month for individuals between age 40 and 64): | 0.80% |
| Family Allowance (applied on salary up to 650,000 JPY per month): | 0.36% |
| Work Injury: | 0.3% |
Health and Nursing Insurance.
Employment Insurance.
Employee Pension Insurance.
Worker’s Accident Compensation Insurance.
Private Medical Insurance.
Contracts in Japan must include:
There is no requirement to have a written employment contract in Japan, but employers must provide their employees with certain terms and conditions of employment in writing. If the employer has work rules in place, the work rules may address many of the provisions that must be covered.
Probation periods are typically between three and six months and should not exceed one year. An unreasonably long probationary period could be deemed invalid, and 12
months is the upper permissible period in many cases.
Employment termination is very difficult in Japan, even during the probation period.
Emerald Technology can onboard employees in Japan within 48 hours.
Employers and employees each make mandatory contributions into the Japanese health insurance system, as outlined above.
The social insurance programme in Japan consists of health insurance, nursing care insurance, pension insurance, employment insurance and workmen’s accident compensation insurance.Every individual who meets the prescribed conditions is expected to participate in these systems as an insured person, regardless of nationality.Non-Japanese employees that leave Japan can claim a refund of employee national pension contributions.
Pregnant employees are entitled to maternity leave within six weeks of the expected birth date, and eight weeks after birth. An employer is not allowed to have a female employee work within eight weeks after giving birth, except if both, she wishes to resume her duties after six weeks after giving birth; and the resumption of the work will not cause any problems, as certified by a doctor. It is not required that employers pay for maternity leave, unless the employment contract or work rules state otherwise.
Japanese law grants both working parents a generous 12 months of parental leave.
An employer is not generally required to grant paid leave to an employee who is absent from work as a result of sickness or injury, unless otherwise stated in the work rules or employment contract.
As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:
When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:
| Notice Periods: | Employers must usually give 30 days’ notice before dismissing an employee, or issue a payment in lieu of notice. An employee is permitted to resign at any time, with a typical notice period of two weeks. |
If an employee is made redundant, they are entitled to a payment based on years of continuous service.
| Severance Pay: | Severance pay is not legally required. |
In Japan, employers are required to grant annual paid leave of at least 10 days to employees who have completed six months’ continuous service. The entitlement increases by one day per year for the following two years, and by two days per year thereafter, up to a maximum of 20 days per year. Unused annual leave expires after two years.
Japan’s prefectural minimum wages range from JPY 714 to JPY 932 per hour for all workers. Industrial minimum wages apply for certain industries and are usually set higher than the prefectural minimum wage. If prefectural and industrial minimum wages differ, the higher of two will apply.
The most common working hours system in Japan is known as the ‘Fixed Time System’, which denotes that work should start at 8am or 9am and finish at 5pm or 6pm, with a one-hour break in the middle. It therefore runs 8 hours per day with 5 working days in a week completing a total of 40 hours, unless otherwise agreed with a union or via a representative of local employees. Japanese law limits overtime work to 45 hours per month, with a maximum of 360 hours in a year. The minimum overtime rates are: Basic overtime rate – 125% of base hourly wage Work on a ‘rest day’ – 135% of base hourly wage Late night overtime (between 10pm and 5am) – 150% of base hourly wage (25% added) Late night overtime on a ‘rest day’ – 160% of base hourly wage (25% added) Overtime work in excess of 60 hours/month – 150% of base hourly wage Late night overtime in excess of 60 hours/month – 175% of base hourly wage”
The payroll cycle in Japan is generally monthly, and payments are to be made on the 25th of each month. It is customary to pay a 13th month salary as a summer bonus in June and a 14th month salary as a winter bonus in December.
Not mandatory but depending on Company’s choice, employees commonly receive 13th-month salary divided between June and December.
Similar to other countries, Japan has strict rules on classifying individual contractors and full-time employees differently. Misclassifying your workers can put your business at risk of fines.
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