Gibson Watts Global: PEO & EOR Services


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  • Japan’s terrain is extremely unique. The nation itself is an archipelago which is mostly made up of stunning mountains and vast forests.
  • Japan’s capital city Tokyo is the most populated city in the world.
  • Despite having increasing numbers of expatriates throughout the nation, Japan’s population is still around 98.5% Japanese.
  • Japan has an extremely high life expectancy rate, coming in second place globally after Hong Kong.

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Japan PEO Services

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Working in Japan

Employment Information

Japan has a work time of 8 hours a day and 40 hours per week (excluding breaks).

The standard hours are 9:00 to 6:00 PM with a 1-hour lunch break in the day. Some Japanese-based businesses are permitted to have their employees work up to 44 hours per week at a maximum of eight hours per day. These businesses include retail and beauty services, cinemas and theatres, businesses related to health and hygiene, as well as restaurants and entertainment businesses with less than 10 regular employees.

Employers are required to provide workers with at least 45 minutes of rest periods during working hours, if working hours exceed 6 hours. They must also provide at least one hour if working hours exceed 8 hours.

An employee is entitled to at least 125% to 175% of their normal pay for overtime hours, depending on when the overtime was completed.

Employees in Japan are usually paid once per month. Traditionally, payments are made on the 25th of the month, but other dates can be used.

Annual Leave

Employers in Japan must grant 10 days’ paid leave to employees that have worked for six consecutive months (from the time of hiring), and who have worked on 80% or more of all scheduled working days.

Employers must also grant a minimum of one day off each week, or four days off per four weeks.

There is no statutory sick leave in Japan.

Maternity leave is available at six weeks prior to the expected date of delivery (14 weeks in the case of multiple pregnancies). Employers must approve this request. Furthermore, employers are prohibited from causing any female employee to work for a period of eight weeks, commencing from the day following the birthdate.

Japan has 16 Public Holidays per year.


In Japan, employees must contribute the following from their salaries:

  • Health Insurance – 4.905%
  • Nursery Insurance – 0.82%
  • Pension – 9.15%
  • Labour Insurance – 0.30%

Employers are required to contribute the following:

  • Health Insurance – 4.905%
  • Nursery Insurance – 0.82%
  • Pension – 9.15%
  • Labour Insurance – 0.60%
  • Worker Injuries – 0.30%
  • Child Allowance – 0.36%

Japan has a progressive income tax rate, which is determined based on the taxable income. This is calculated as the total earnings minus a basic exemption, exemptions for dependents and various types of deductions (including deductions for insurance premiums, medical expenses, etc.)

Cultural Information

Japan’s culture is rooted in numerous ancient traditions and family values. As a nation with a rich heritage, Japan has influenced a variety of other cultures throughout the world. Religious groups in Japan are primarily made up of Buddhists and Shintõ (the indigenous religion of Japan).

Japanese is the nation’s primary language, and expatriates should consider grasping some of the basics of this language before relocating.

Punctuality is also extremely important in Japanese culture, particularly in its business environments. Expatriates should be aware of their timekeeping and aim to always be punctual in their professional lives.

Impacts from COVID-19

Compared to other nations, Japan has generally been reluctant to adopt remote/hybrid working practices since the pandemic. Despite this, some statistics show that this trend is still growing regardless.

Japan has achieved high rates of vaccination, with around 81% of the population being fully vaccinated against COVID-19 since their campaign began.

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