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Hiring employees in Japan (2026)
Here's what you need to know before you hire in Japan: what it really costs an employer, the employment laws that shape the contract, and how an Employer of Record lets you hire compliantly without opening a local entity. Every figure below is sourced and dated.
15.7%Employer cost on top
¥182,726Minimum wage / mo
10 daysMinimum paid annual leave
Days, not monthsTime to hire via EOR
Last updated: December 1, 2026
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Japan at a glance
The statutory facts that drive a hire in Japan. Each row shows where the figure comes from and how current it is, so you can trust the number and check it yourself.
Pay & working time
| Minimum wageper month | ¥182,726Dated | ILOSTAT · 2024 |
| Average wageper year | 50,183Aging | OECD · 2025 |
| Statutory work week | 40 hours/weekCurrent | National government · 2026 |
| 13th-month salary | customaryCurrent | ILO EPLex · 2026 |
Employer cost & tax
| Employer social securityof gross salary | 15.7%Aging | OECD · 2025 |
| Employee social securitywithheld from pay | 14.7%Aging | OECD · 2025 |
| Tax and mandatory contributions wedgeOECD, taxes plus non-tax compulsory payments such as mandatory private pension and health contributions | 33.1%Aging | OECD · 2025 |
| Corporate tax rate | 29.7%Current | OECD · 2026 |
Termination
| Notice period | 4.3 weeksCurrent | National government · 2026 |
| Severance pay | 0 weeksCurrent | World Bank Employing Workers / B-READY · 2019 |
| Employment protectionOECD EPL, scale 0–6 | 2.1Aging | OECD · 2025 |
Leave & time off
| Paid annual leave (minimum, once eligible) | 10 daysCurrent | National government · 2026 |
| Public holidays | 16 daysCurrent | National government · 2026 |
| Maternity leave | 14 weeksCurrent | National government · 2026 |
| Paternity leave | 8 weeksCurrent | National government · 2026 |
| Parental leave | 52 weeksCurrent | National government · 2026 |
Labour market
| Retirement age | 65Dated | OECD Pensions at a Glance · 2024 |
| Unemployment rate | 2.7%Current | OECD · 2026 |
| GDP per capita | $35,951Aging | World Bank Open Data · 2025 |
| Union density | 16.2%Dated | OECD/AIAS ICTWSS · 2024 |
| Collective bargaining coverage | 15.2%Dated | OECD/AIAS ICTWSS · 2023 |
Each row shows the year of the most recent citable source for that figure. Where a year looks old, that is the newest comprehensive source available, and we keep the sourced figure rather than substitute an unsourced newer one. Statutes may have changed since.
What it costs to hire in Japan
Salary is only part of the bill. On top of gross pay you owe employer social security and statutory contributions. Here's what an example salary of $50,000 a year actually costs you as the employer.
| Gross annual salary | $50,000 |
| Employer contributions≈ 15.7% of gross | + $7,830 |
| Total employment cost | $57,830 |
Your EOR handles the filings
Illustrative, based on the employer social-security rate above. An EOR adds its own service fee on top of this total and runs the income-tax withholding and statutory filings, which are withheld from the employee's pay, not paid by you.
Employment-law essentials
The rules an EOR enforces in your contracts, and the ones most likely to trip you up if you tried to hire in Japan on your own.
Working time
Statutory work week40 hours/week
Pay & 13th salary
Minimum wage¥182,726
13th-month salarycustomary
Leave
Paid annual leave (minimum, once eligible)10 days
Public holidays16 days
Maternity leave14 weeks
Paternity leave8 weeks
Termination
Notice period4.3 weeks
Severance pay0 weeks
Statutory minimums shown. Collective agreements or contracts can be more generous; an EOR applies whichever is correct for the role.
EOR vs. opening your own entity in Japan
Use an EOR when…
You're hiring one to a handful of people in Japan.
You want someone working in weeks, not months.
You'd rather not own local payroll, tax and compliance.
You're testing the market before committing.
Open your own entity when…
You're scaling to a large local team long-term.
Per-employee EOR fees outweigh the cost of an entity.
You need full control of local employment and IP.
Choosing an EOR for Japan
Providers with strong Japan coverage onboard faster and carry less risk. A shortlist to start from:
EORRead Hire with Columbus review Visit website
EORMultiplier
From$459 (Core · billed annually)
EORPayoneer Workforce Management
From$199
EORRemoFirst
From$199
EORRemote
From$699
EORSwapp Agency
FromRequest a quote
Local players in Japan
EOR and global-employment providers headquartered in Japan:
JapanCareerRole Inc.
Kanagawa-ku
FromRequest a quote
JapanGoGlobal
Tokyo
FromRequest a quote
Common questions about hiring in Japan
Common questions about hiring in Japan through an EOR.
Do I need a legal entity to hire someone in Japan? +
No. An Employer of Record (EOR) already has a legal entity in Japan and employs the person on your behalf, so you can hire compliantly without opening your own entity. You manage the day-to-day work; the EOR handles the local contract, payroll, taxes and statutory benefits.
How much does it cost to employ someone in Japan? +
On top of gross salary, employers in Japan contribute roughly 15.7% in social security and statutory costs. An EOR adds its own service fee on top of that total employment cost.
What is the minimum wage in Japan? +
The statutory minimum wage in Japan is ¥182,726. Pay below this is not permitted, and an EOR will hold contracts to at least this floor.
How hard is it to terminate an employee in Japan? +
Ending employment in Japan generally requires a notice period of around 4.3 weeks and severance of about 0 weeks, subject to the reason for termination and the employee's tenure. An EOR runs the offboarding in line with local law to limit your risk.
How much paid leave do employees get in Japan? +
Employees in Japan are entitled to 10 days of paid annual leave, in addition to public holidays. Statutory leave is one of the entitlements your EOR administers automatically.
About the author
Robbin is the co-founder of EOR Overview, an independent research site for Employer of Record services. He has been in the international hiring space for over a decade.
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