Country Directory

Japan Payroll Guide

Hire employees in Japan.


Yen (JPY)



Official language(s)


Japan Facts





Offical language(s)



Yen (JPY)

Date format


Fiscal year

1 April - 31 March

Hiring in Japan

We're here to assist with all your Payroll and HR requirements in Japan, whether you’re looking for services in Tokyo, Osaka or elsewhere.

Employer Responsibilities

In Japan, the following must be adhered to under strict local legislation:

  • Minimum wage varies on region between JPY 761 & JPY 985
  • Minimum 10 days’ vacation
  • Bonuses paid twice per annum

Frequently Asked Questions

How does payroll work in Japan?

Typically, employees that are salaried receive bonus payments twice a year: once in June followed by another in December. These bonuses are not obligatory but would be emphatically expected by local professionals.

Many employers in Japan supply Travel Allowances to offset or cover the costs incurred by staff commuting. This is particularly the case for businesses operating in Tokyo or other major cities.

What are the general employment rules?

After 6 months of service, a minimum of 10 days’ paid vacation must be offered to employees. The minimum requirement increases in line with completed service. The increases are: 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.

What about dismissing an employee?

Dismissing an employee in Japan requires strict adherence to the legal process. Employees can contest the termination which often leads to a settlement payment. Please consult one of our Employment Experts prior to commencing a termination.

Can’t find the answer you’re looking for? Talk to one of our experts today.

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Lower Costs

Reduced administration, no need for an in-country team, and consolidated, outsourced payroll.
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Who we work with

Japan Payroll

Get peace of mind with a streamlined, fully-managed payroll solution for 1+ employees.
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Japan HR

Helping you hire compliantly, steering you through the local HR laws and regulations.
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Japan Payments

Consolidated, one-wire transfers to cover your entire global workforce - at competitive rates.
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Japan Payroll & HR Solutions

PeoplePay Global are here to assist with all your Payroll and HR requirements in Japan.

In-Country Employment Contracts

Creation of locally-compliant Japanese employment agreements, ensuring you and your employees are protected in-country. Our experts in Japan will create your bespoke agreement.

Payroll Processing

With global knowledge and local proficiency, we provide a fully-managed payroll solution that handles all the complex tasks, leaving you to focus on your business.

Tax and Labor Law

Japan’s complex legislation can be daunting. Our in-country specialists are an extended member of your team, steering you safely through tax and labor law.

Regulatory Compliance

Our in-country professionals provide a wealth of experience and expertise in Payroll & HR compliance, ensuring your venture complies with ever-changing legislation.

Start-Up Implementation

We’ll ensure you’re operational promptly in accordance with local law, advising on the best route for your business, whether it’s via a legal entity or foreign registration.

Declarations and Audits

Our local specialists will manage and submit annual declarations on your behalf, guaranteeing accurate and prompt reporting to the authorities and also providing support for audits.
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