Payroll and HR in Japan
The International HR & Payroll Company
That Speaks Your Language
At IRIS FMP, we help simplify Japanese payroll and HR. Recognized worldwide as a global payroll and HR specialist, we have 88 in-country teams with the expertise to ensure your overseas employees are paid on time, every time.
Overcoming the challenges of global payroll and HR in Japan is not always easy without specialist support. As compliance is always a top priority for most businesses, IRIS FMP will support you during a global expansion with any HR or payroll inquires that arise. This includes differing laws, cultures and regulations, where it can feel overwhelming to stay on top everything. Fortunately, our expert teams are always available to help your business. We cover:
Payroll in Japan
Working with you, we overcome the complexities of international payroll by managing everything – from local pay to benefits. Your growing workforce will be paid accurately, on-time, every time.
Japanese Employment Law Compliance
Onboard your people seamlessly and compliantly with help from the experts. As an in-country specialist, we can help you understand everything from contracts, to policies, and more.
Jump to section
- Asia (Eastern Asia)
- Calling Code
- Timezone in Capital
- (asia/tokyo) 2:44 PM
- Japanese yen (JPY)
$1 = ¥136.81
- Main Language
- Japanese(日本語 (にほんご))
- Other Business Languages
- Tax Year Start
- 1st January
- Tax Year Start
- 31st December
Details correct at time of publication. You should not rely on these details without first seeking professional international advice.
A trusted advisor for global expansion
We support businesses in 135 countries worldwide to reach their expansion goals.
Global Expansion in Japan
Formally known as “Nippon-koku” or “Nihon-koku”, Japan has a population of over 126 million people. Known for its bustling neon cities, imperial palaces and mountainous national parks, it’s no surprise the country welcomes millions of tourists from across the globe every year.
It’s also no wonder many businesses look to expand their operations overseas to Japan. With a highly advanced infrastructure, a market of consumers with high levels of disposable income and a large economy, Japan is a win-win country to expand into. However, though the country may welcome you with open arms, expanding your business there isn’t without its challenges.
The country’s official language is Japanese, with English rarely used outside of hotels and restaurants catered to foreigners. This means you’ll likely need translation assistance during your expansion. The language barrier also presents a challenge when it comes to payroll and HR compliance. You want to make sure your processes remain compliant with the country’s laws and guidelines, which can be a challenge itself – let alone being in foreign language.
Fortunately, IRIS FMP are the xperts you need by your side. We have the experience you need to ensure your business remains compliant and your employees are paid on time, every time.
In Japan, the following reports must be submitted to strict deadlines.
- Withholding tax Report
- Fixed Asset Tax Return
- Consumption Tax Return
- Corporate Tax Return
Payroll in Japan
What tax considerations are there?
Income tax is taxed at three levels in Japan dependent on income – national, prefectural and municipal. Under prefectural and municipal levels this is known as ‘resident tax’. Permanent residents in Japan are taxed on their worldwide income, whilst foreign residents employed in Japan will only be taxed on their Japanese income.
HR in Japan
What are the regular working hours in Japan?
Since 1987, Japan adopted the principle of a 40-hour week, however, Japan is well known for its long working hours. Overtime is taken consistently and workers often have second jobs on top of their primary income. If an employee works an 8 hour day they are entitled to a 1 hour break.
Vacation and illness
Employees in Japan are entitled to a minimum 10 days of paid annual leave per year after 6 months of employment. Additional days of paid vacation are added for each subsequent year of service. For example, after 2.5 years of service a worker will be entitled to 12 days holiday. Workers on part-time contracts are also entitled to paid annual leave depending on the number of days they work.
There is no sick leave right in Japan, if an employee is sick, they generally use a paid vacation day instead. However, some companies will grant sick leave as a special benefit.
There is a minimum 30-day notice period before an employer can dismiss an employee. Employees can only be let go if there is just cause based on Japan’s Civil Code and Labor Standards Law.
Want to know more about international payroll?
Download our international payroll guide for more information on international payroll and discover key considerations.
IRIS FMP’s Japanese Payroll and HR Solutions
Whether you’re looking for payroll and HR in Tokyo or Osaka, IRIS FMP are the experts you need to help you streamline your international payroll and HR. Our services include but are not limited to:
- Employment Contracts
- Payroll Processing
- Year End Income Tax Reconciliation
- Coordinating with the Company HR Department
- Regulatory Compliance
- Benefits Administration
- Multi-currency Salary Payments and Bonuses
- Withholding tax payments to respective authorities
- Payroll Audit Services
- Email Payslip Services
- Pension Administration
- Employee Local Tax Administration
- Tax and Labor Consulting
- Legal representation / Assistance
- Handling of confidential Payroll
- Translation Services
Maintain Compliance with Your Japanese Payroll & HR
We’ll ensure your business’s payroll and HR processes remain compliant in Japan. Get in touch with our experts today and see how we can take the headache out of your expansion.