Employing in Japan
Japanese Payroll
Optimise your workforce with our expert global payroll services in Japan for trusted, efficient payroll solutions. At PeoplePay Global, we handle every aspect of the payroll process, from processing to income tax calculations, social insurance compliance, and law reporting, in full compliance with Japanese regulations.
Our Japan payroll outsourcing solutions can reduce administrative stress, ensure compliance, and protect sensitive employee data. Partner with us today for reliable and efficient payroll solutions in Japan.
Payroll Services Japan
Enhance your business operations by trusting professional payroll services in Japan to navigate complex Japanese payroll regulations. With every step managed, we will organise your income tax withholdings, social insurance contributions, labour insurance, and year-end tax adjustments with ease.
Our team of experts will provide high-quality assistance, delivered accurately and with in-depth local knowledge, to ensure you and your employees are fully compliant with Japanese labour laws.
From precise salary calculations to timely filings, we will ensure that any administrative stress is handled with care. Monthly payroll processing, overtime payments, commuting allowances, and statutory reporting will be maintained with strict security and data confidentiality measures. Each of our specialists will stay up to date on changing regulations, helping your business avoid costly mistakes and reduce compliance risks.
By trusting outsourced payroll solutions in Japan, your company can streamline all HR operations and focus on company-wide growth and success.
Whether you are a start-up company or a multinational organisation, our payroll solutions and payroll services can provide you and your employees with reliable, transparent support. Contact us today to gain the peace of mind that your payroll processes are accurate, compliant and professionally handled with ease.
The minimum wage in Japan varies regionally, but in 2025 the average across all prefectures is ¥1,054 per hour, with Tokyo being the highest. The minimum wage ranges between ¥900 and ¥1200 depending on variations in regional economic markets and cost of living.
The individual income tax contributions in Japan range from 5% to 45% and are based on the threshold of income. In addition, there may be other surtaxes and local income taxes required.
Private sector employees are covered by the Employee’s Pension Insurance, and public sector employees are covered by the Mutual Aid Associations.
Both employees and employers make an equal contribution to this fund which totals 18.3% of the employee’s salary (so 9.15%).
On average, a full-time working week ranges from 35 to 40 hours per week, Monday to Friday between 9am and 5pm. There are of course other industries with different working patterns, which can sometimes include weekends or unsociable hours.
Working hours in the UK are governed by the Working Time Regulations, which stipulate that an employee cannot work more than 48 hours per week on average, but an individual can choose to opt out of this.
Employee’s leave consists of several types:
- Statutory time off or paid leave, which starts at 10 days paid leave for up to 6 months employment, and increasing with length of service
- Public holidays (there are 16 in Japan)
- Maternity, Paternity and Childcare leave
- Other leave (e.g., bereavement leave)
Termination of an employment contract in Japan is complex and varies depending on the employment contract in place. Due to its complexity, termination of contract is nearly always done via mutual agreement, as an employer cannot terminate without due cause, which under Japanese employment law is very difficult. Employers must provide a minimum of one months’ notice upon termination, however the same obligation is not placed on the employee.
For more information about termination, please contact us.
