Employment overview in Japan
Hiring in Japan requires a registered local employer to handle payroll, taxes, and statutory benefits. With Expand EOR, our local entity becomes the legal employer — so you can hire any candidate in Japan without setting up your own subsidiary.
The local currency is JPY and the standard payroll cycle is monthly. The official working language is Japanese, and contracts must comply with Japan employment law.
Key employment laws in Japan
- Working hours40 hrs/week
- Probation period3–6 months
- Notice period30 days
- Paid annual leave10–20 days
- Public holidays16
- Minimum wagePrefectural (avg JPY 1,004/hr)
Payroll, taxes, and benefits in Japan
Payroll in Japan runs monthly. Employers are responsible for income tax withholding, social security contributions, and any mandatory benefits.
Estimated employer cost on top of gross salary: ~16% on top of gross. Expand EOR handles all calculations, deductions, and statutory filings on your behalf.
Estimated cost of hiring in Japan
Total cost = gross salary + employer contributions (~16% on top of gross) + EOR fee starting at $299/month. There are no setup fees, no hidden charges, and no per-country surprises.
Get an exact quoteWhy use an EOR in Japan?
- Hire in Japan in days — without registering a local entity (which can take months and cost $15,000+).
- Stay 100% compliant with Japan employment, tax, and labour law.
- Pay employees in JPY on time, every cycle.
- Provide compliant local benefits and a great employee experience.
- Avoid permanent establishment risk and misclassification penalties.
Ready to hire in Japan?
Get a tailored hiring plan with exact local costs in under 24 hours.
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