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

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.