JP
Japan: Payroll & Employment Facts
Verified statutory employment facts for Japan, each with its official source and the date it applies from. This is our reference record. For provider choice and hiring advice, see the Japan employer-of-record guide and the Japan country hub.
What is the minimum wage in Japan?
| National minimum wage |
¥1,121.00 / hour
|
|---|---|
| Next review date |
2026-07-31
|
What employer social contributions apply in Japan?
Rates are a percentage of gross wage, applied up to the annual contribution ceiling.
| Employer social security rate |
1.25%
|
|---|---|
| Pension |
9.15%
|
| Healthcare |
5.00%
|
| Child-rearing Contribution (Kodomo/Kosodate Kyoshutsu-kin) |
0.36%
|
| Annual contribution ceiling |
Not available
|
| Total employer burden |
16.67%
|
What notice and leave rules apply in Japan?
Statutory minimum notice the employer must give, by completed length of service.
| Length of service | Employer notice |
|---|---|
| 0+ months | 4 weeks |
Checked 2026-06-06
| Payment in lieu of notice (PILON) |
Permitted
|
|---|---|
| Minimum annual leave |
10 days
|
| Annual leave includes public holidays |
No
|
| Public holidays per year |
16 days
|
Is 13th-month pay required in Japan?
None of the following are mandated by statute; they may still arise from a contract or collective agreement.
| Thirteenth-month pay required |
No
|
|---|---|
| Profit sharing required |
No
|
| Holiday bonus required |
No
|
How is severance calculated in Japan?
| Formula |
Japan has no statutory severance or redundancy pay formula based on length of service. Instead, Article 20 of the Labor Standards Act requires employers to provide at least 30 days' advance notice of dismissal. If an employer dismisses an employee without providing the required notice, they must pay a 'dismissal notice allowance' (解雇予告手当, kaiko yokoku teate) equivalent to 30 days of the employee's average wage. This is a one-time payment in lieu of notice, not a tenure-based severance payment.
|
|---|---|
| Per-year multiplier |
0
|
| Minimum qualifying tenure |
0 months
|
| Calculation base |
Average daily wage (jpy/day)
|