🇯🇵 Hire in Japan: cost, rules and best EOR options

High-skill, high-trust workforce and a major economy. English is limited outside international firms, but the talent in engineering, finance and manufacturing is deep. Employer social insurance is moderate, though dismissal protections are strong.

Last verified 2026-10-05. How we research · Affiliate disclosure

Not professional advice. Rates, rules and prices change often. Figures here are researched estimates from the sources listed; anything marked “unverified” needs checking with the provider or a local adviser before you rely on it.
Key facts: hiring in Japan
  • Employer on-costs: 15.3–16.2% of gross salary (on a $60,000 salary, about $69,180–$69,720 total)
  • EOR onboarding: not verified; own entity: not verified
  • Probation: Customarily 3-6 months, set by contract; during the first 14 days dismissal needs no 30-day notice (general knowledge).
  • Currency: Japanese yen (JPY)
  • Data confidence: medium, verified 2026-10-05

Get matched for JapanCalculate cost

What it costs to employ someone in Japan

Employer on-costs run roughly 15.3–16.2% on top of gross salary. Derived from secondary sources, using Tokyo Kyokai Kenpo rates for FY2026: welfare pension 9.15%, health insurance ~4.925%, child and childcare support 0.115%, employment insurance 0.85%, workers' accident ~0.3% (office jobs) = ~15.3%. High adds nursing-care insurance 0.81% for employees aged 40-64 = ~16.1%. Employee-side rates match PwC (pension 9.15%, health 4.925%). Excludes the employer-only child-rearing contribution (~0.36%, not verified), commuting allowance (taxable/social-insured) and paid leave. Health and pension contributions are capped by standard-remuneration grades.

ContributionRateNotes
Welfare Pension (Kosei Nenkin)9.15%Equal employer and employee share of 18.3%; standard monthly remuneration cap applies.
Health insurance (Kenko Hoken)~4.925% (Tokyo Kyokai Kenpo, FY2026)Varies by prefecture and insurer.
Child and childcare support contribution0.115% (April 2026)Shared 50/50 per secondary source.
Employment insurance (Koyo Hoken)~0.85% (general industry FY2026)One source says 0.95%; employee 0.5% per PwC.
Workers' accident insurance (Rosai)~0.3% (office roles; varies by industry)Employer-only.
Nursing care insurance (Kaigo Hoken)~0.81% (employees aged 40-64)Employer share.

Employer withholds the employee's social insurance (about 14.69% per PwC: pension 9.15%, health 4.925%, child support 0.115%, unemployment 0.5%), national income tax and resident (local) tax, and remits monthly.

Mandatory benefits

Employment rules at a glance

PayrollMonthly (full payment, in currency, at least once a month on a fixed date); bonuses commonly paid twice a year (customary).
ProbationCustomarily 3-6 months, set by contract; during the first 14 days dismissal needs no 30-day notice (general knowledge).
Notice & severanceEmployer must give 30 days' notice or pay in lieu of notice (averaged wages); no statutory severance, but many employers pay by company rule or collective agreement.
Working timeStandard 8 hours per day and 40 hours per week; overtime premium 25% (50% above 60 hours a month), night work +25%, rest-day work +35%. Overtime caps: 45 hours per month and 360 hours a year as a baseline.
Paid leave10 days after 6 months of service, increasing annually to 20 days after 6.5 years (Labor Standards Act; general knowledge) plus 16 national holidays.
Minimum wagePrefectural minimums; national weighted average JPY 1,121 per hour (FY2025). The Central Minimum Wages Council recommended +JPY 55 to JPY 1,176 average from October 2026 (Tokyo ~JPY 1,280 vs JPY 1,226 now); prefectural effective dates stagger, and the final decisions should be confirmed with MHLW.

Termination

Dismissal needs objectively reasonable grounds and must be socially acceptable (Labor Contract Act art. 16), making it hard to dismiss; abuse of rights claims are common. Fixed-term contracts convert to indefinite after 5 years on request.

Employee or contractor in Japan?

Independent contractors (gyomu itaku) are common, but Japanese courts and labour inspectors apply employee-likeness tests. The Freelance Act (2024) regulates payment to freelancers. Moderate risk.

Compare contractor vs employee cost →

Hiring through an EOR in Japan

A foreign company can employ via a Japanese KK (kabushiki kaisha) or GK subsidiary, a branch, or an EOR (haken/payrolling). Work visas require a sponsoring entity. Timelines not verified.

Typical onboarding: EOR not verified; own entity not verified. JST, UTC+9 all year with no DST; 13-14 hours ahead of US Eastern.

Providers worth shortlisting

Pricing is global list pricing where public; country-specific quotes may differ. Full “best EOR for Japan” guide →

ProviderBest forEOR pricingCoverage
DeelCompanies that want one platform for contractors, EOR and a US PEO, with transparent per-seat list prices.$599 per EOR employee per month (public list price, checked 2026-10-05)150+ countries (vendor claim, per Deel's own and third-party descriptions)Visit Deel
RemoteTeams that want a published price for each product (EOR, global payroll, contractors, contractor of record, US PEO) and an affiliate program with 12-month revenue share.$699 per employee/month (public list price, checked 2026-10-05)90+ countries for EOR (vendor pricing page claim)Visit Remote
RipplingCompanies already running (or willing to adopt) a unified HR, IT and finance platform who want global hiring as an add-on module.Quote-based / not public—Visit Rippling
OysterDistributed teams that want published EOR and contractor prices and a long-running affiliate program with tiered revenue share.$699 per employee/month (public list price, checked 2026-10-05); annual discounts available; refundable deposit required120+ countries EOR; contractors in 180+ countries (vendor claim)Visit Oyster
Papaya GlobalMid-size and larger companies that need multi-country payroll orchestration and workforce payments, and will go through a sales process.Quote-based / not public160+ countries (vendor claim as repeated on FlexOffers listing and third-party pages)Visit Papaya Global
MultiplierCost-conscious teams that want EOR priced below $500 per employee with an annual discount.Third-party summary of Multiplier's pricing: EOR from $459/employee/month on annual contracts and $499 on monthly contracts (not confirmed; multiplier pricing page returned 403 to our fetch)—Visit Multiplier
RemofirstSmall teams that want the lowest published EOR starting price and a free contractor tier.Starting at $199 per person/month (public list price, checked 2026-10-05); 'no hidden fees, setup fees, or minimum contract terms' per vendor page185+ countries for EOR (vendor claim)Visit Remofirst
Pebl (formerly Velocity Global)Companies that want an EOR with a tiered reseller/partner program and are comfortable with a recently rebranded vendor.Third-party reports a flat $399 per employee/month (not confirmed on vendor page; hellopebl.com/pricing returned 404)185+ countries (third-party report)Visit Pebl (formerly Velocity Global)

Paying and covering your team in Japan

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Related

FAQ

What employer social insurance costs apply in Japan?

About 15-16% of gross pay: pension 9.15%, health ~4.9%, employment ~0.85%, accident ~0.3% plus care insurance for those aged 40-64.

Is severance required?

No statutory severance, but 30 days' notice or pay in lieu is required.

How strict are dismissals?

Very: dismissal needs objectively reasonable grounds and social acceptability.

What is the minimum wage?

Set by prefecture; the average is JPY 1,121 per hour, with a recommended rise to JPY 1,176 from October 2026.

Still unverified: Employer health, employment and accident rates are from secondary sources (PwC covers the employee side); Child-rearing employer-only contribution rate; Final October 2026 minimum wage by prefecture; Leave, overtime and notice details from general knowledge; EOR/entity timelines.

Sources

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