Japan

• New Year's Day
• Coming-of-age Day
• National Foundation Day
• The Emperor's Birthday
• Vernal Equinox Day
• Showa Day
• Constitution Memorial Day
• Greenery Day
• Children's Day
• Marine Day
• Mountain Day
• Respect for the Aged Day
• Autumnal Equinox Day
• Sports Day
• Culture Day
• Labour Thanksgiving Day

Working Hours

Employees can work up to eight hours a day, or 40 hours per week. This may be extended on agreement with a labour union or employee representative.

Minimum Wage

In 2024, the national minimum wage increased to Yen 1054 per hour.

But each prefecture in Japan sets its own minimum hourly rate, in line with the annual increases announced at the national level.

Employee Tax

Annual income	Tax rate
Up to JPY 1,950,000	5%
JPY 1,950,001 - 3,300,000	10% - JPY 97,500
JPY 3,300,001 - 6,950,000	20% - JPY 427,500
JPY 6,950,001 - 9,000,000	23% - JPY 636,000
JPY 9,000,001 - 18,000,000	33% - JPY 1,536,000
JPY 18,000,001 - 40,000,000	40% - JPY 2,796,000
More than JPY 40,000,000	45% - JPY 4,796,000
Local tax (flat rate)	10%
Social security contribution	14.355%

Bonuses

There are no statutory bonus schemes in Japan.

There is no legal requirement for an employment contract in Japan, but certain terms and conditions of employment must be provided to the employee in written form. Often, this includes issuing a copy of the company’s work rules (known as shuugyou kisoku) that state:

• Working hours
• Salary
• Leave entitlement
• Termination requirements
• Applicable disciplinary action
• Other general workplace rules

Full-time indefinite contracts, part-time contracts, and fixed-term contracts are permitted in Japan.

Annual Leave

Employees with at least six months of service and 80% attendance are entitled to a minimum of ten days’ paid holiday per year. This increases by one day every year after two years of service, up to a maximum of 20 days per year.

Sick Leave

There is no statutory sick leave or sick pay in Japan.

Parental Leave

• Maternity leave: at least 14 weeks' leave paid at two thirds of the mother's salary.
• Paternity leave: none.
• Parental leave: mothers and fathers can take childcare leave up to the child's first birthday, paid at two thirds of their salary.

Termination Process

Japanese labour laws offer strong protection to employees. There is no concept of at will employment in Japan and termination of employees generally must be for cause.

Serious misconduct, fraud, and insubordination are the few grounds for dismissal. It is generally very difficult to terminate employees in Japan.

Employees can terminate the contract by giving notice in line with their contract terms.

Severance Pay

There is no statutory right to severance pay in Japan.

Under a Mauve Group Employer of Record solution, clients and workers can reap the benefits of Mauve’s Global Master Insurance Programme – a market-leading unified corporate insurance programme that connects all Mauve entities to its two preferred providers.

The insurance provides coverage in overseas locations through a combination of the master policy and its linked local policies, where required by law in certain jurisdictions.  The policies include:

• Employer’s Liability and Public Liability - £10,000,000 combined limit.
• Professional Indemnity - £5,000,000 limit.
• Worker’s Compensation – Limit is dependent on location of work.

For specific information about statutory and recommended insurances in your chosen country, get in touch with Mauve.