Japan offers many opportunities for companies to expand and grow. Ensuring compliance for your workforce in Japan can be challenging, with labor and payroll regulation changes each year.

Labor and Payroll Considerations in Japan:

  • Minimum wage can differ based on region – currently Tokyo has the highest minimum wage of 985 JPY per hour. The national minimum wage is currently 874 JPY per hour ($8.09 USD)
  • Income tax and social security payroll contributions are withheld from the employee
  • Most commonly, employee terminations are managed with a negotiated, voluntary resignation with salary, benefits, and severance pay provided by the employer
  • Many types of foreign worker visas are available based on profession
  • Visa applicants must have a job offer from a Japanese employer
  • In early 2019, Japan passed new legislation to increase foreign worker visas. There is a new unskilled 5-year visa, and a skilled visa for those who pass a Japanese language exam

Blue Marble has simplified payroll and compliance in Japan with cloud-based payroll technology with aggregated monthly reporting. You can track your payroll costs in real-time across all countries and currencies. Our unique, hybrid service model has a US-based team plus in-country experts to help when questions come up. Simplify your payroll and compliance in Japan. Click here to learn more