Gibson Watts Global: PEO & EOR Services

JAPAN PEO & EOR

Hire in Japan without a local entity today

As a Global PEO & EOR service provider, we pride ourselves on our global reach, in-country knowledge, and ability to swiftly and efficiently mobilize workers around the world. Our robust PEO/EOR covers everything from global HR, payroll, compliance, in-country support, immigration, visas, and more.

Get started and hire in Japan today with Gibson Watts Global.

DID YOU KNOW
  • Japan has the world’s busiest train station, Shinjuku Station in Tokyo, handling over 3.5 million passengers daily.
  • Mount Fuji, Japan’s tallest peak at 3,776 meters, is an active volcano and a UNESCO World Heritage Site.
  • Japan has more than 3,000 McDonald’s restaurants, making it one of the largest markets outside the US.

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Japan EOR Services

Gateway to East Asia

Japan – a technologically advanced nation at the heart of East Asia—is increasingly attractive to international businesses. With a strong and stable economy, world-class infrastructure, and a strategic location linking Asia, the Pacific, and global markets, it has become a compelling destination for trade and investment.

Government initiatives such as corporate tax incentives, support for innovation, and streamlined business registration reduce bureaucracy and encourage entrepreneurship. Combined with Japan’s highly educated workforce, leadership in technology, automotive, and robotics sectors, and focus on sustainable development, the country offers a strong platform for companies seeking growth in Asia and beyond.

Working in Japan

Financial Year Dates

Japan’s financial year aligns with the calendar year, running from April 1st to March 31st.

Minimum Wage

As of 2025, Japan’s nationwide minimum wage is ¥961 per hour on average, with regional variations across prefectures.

Standard working hours

The standard workweek in Japan is 40 hours, typically divided into five 8-hour days. Flexible working arrangements are increasingly adopted, particularly in IT, finance, and technology sectors.

Overtime

Overtime in Japan is generally paid at 125% of the employee’s standard hourly wage, increasing to 150% for late-night work and 135% on weekends or public holidays. Employers must comply with Japan’s labor standards, including limits on monthly overtime hours.

Holiday Allowance

Employees in Japan are entitled to a minimum of 10 to 20 days of paid annual leave depending on years of service. Public holidays are in addition to this leave.

Sick Leave

Japan does not mandate statutory sick leave; however, employees typically receive paid leave through company-specific policies. Health insurance benefits may cover medical costs.

Maternity & Paternity Leave

  • Maternity Leave: Female employees are entitled to 14 weeks of maternity leave (6 weeks before birth and 8 weeks after), with pay provided under the health insurance system.
  • Paternity Leave: Male employees are entitled to up to 1 year of parental leave, with partial pay under the government’s child-care leave program.

Public Holidays

Japan observes several public holidays throughout the year, including:

  • New Year’s Day (January 1)
  • Coming of Age Day
  • National Foundation Day
  • 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
  • Culture Day
  • Labor Thanksgiving Day
  • Emperor’s Birthday

Social Contributions

Employers:
Social Insurance (Health, Pension, Unemployment): Approximately 15–16% of salary

Employees:
Social Insurance (Health, Pension, Unemployment): Approximately 14–15% of salary
These contributions fund Japan’s comprehensive public healthcare, pension, and unemployment systems.

Income Tax

Japan employs a progressive income tax system. For 2025, the national income tax brackets are:

  • Up to ¥1,950,000: 5%
  • ¥1,950,001–¥3,300,000: 10%
  • ¥3,300,001–¥6,950,000: 20%
  • ¥6,950,001–¥9,000,000: 23%
  • ¥9,000,001–¥18,000,000: 33%
  • ¥18,000,001–¥40,000,000: 40%
  • Over ¥40,000,000: 45%

Local inhabitant taxes (municipal and prefectural) are approximately 10% on top of national tax.

Health Care

Japan provides universal healthcare through its public system, funded by employer and employee contributions. Employees also contribute to long-term care insurance. Many companies supplement this with private health benefits.

Visas

Work Visa: Required for foreign nationals seeking employment in Japan, sponsored by a Japanese employer, typically valid for 1–5 years and renewable.

Business Visa: For investors or entrepreneurs establishing a business in Japan.

Temporary Residence Visa: Permits foreigners to reside in Japan, usually linked to employment or investment.

Family Reunification Visa: Allows employees to bring eligible family members. Sponsors must demonstrate sufficient income and accommodation.

13th salary?

Japan does not have a statutory requirement for a 13th salary. However, it is common practice in many companies to provide a summer and winter bonus, often totaling 2–3 months’ salary annually. Learn more

Cultural Information

Japan is a country of rich traditions and technological innovation. Tokyo blends modern skyscrapers with historic temples, while Kyoto preserves centuries-old cultural heritage. Japanese cuisine includes sushi, ramen, tempura, and wagyu beef. The nation is renowned for its festivals, arts, and meticulous attention to craftsmanship, from tea ceremonies to advanced robotics. Japanese society values harmony, respect, and group cohesion, which extends into the workplace culture.

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