These are various key contribution and deduction rates imposed on Japanese companies and their employees by law.
Employer Contributions
9.15% – Pension contribution
4.935% – Health Insurance Contribution (or 5.83% if 40 years or older)
0.6% – Unemployment insurance
0.25% – 8.8% – Work injury
~0.36% – Family allowance
Employee. Contributions
9.15% – Pension contribution
4.935% – Health insurance contribution
0.3% – Unemployment insurance
Personal income tax rates
5% – Up to ¥1.95M ($17,629.67)
10% – ¥1.95 – ¥3.3M ($17,629.67 – $29,834.82)
20% – ¥3.3M – ¥6.95M ($29,834.82 – $59,579.24)
23% – ¥6.95M – ¥9M ($59,579.24 – $81,367.70)
33% – ¥9M – ¥18M ($81,367.70 – 162,735.41)
40% – ¥18M – ¥40M ($162,735.41 – $361,634.24)
45% – Over ¥40M (Over $361,634.24)
Paid time off after six months working, accrual up to two years of paid vacation.
6 months: 10 days paid vacation
1.5 years: 11 days paid vacation
2.5 years: 12 days paid vacation
3.5 years: 14 days paid vacation
4.5 years: 16 days paid vacation
5.5 years: 18 days paid vacation
6.5+ years: 20 days paid vacation
Public holidays (16). It’s not obligatory to pay employees on public holidays, it’s widely practiced.
Sick days. Not explicitly entitled, employees must use their paid vacation in lieu of sick leave.
Maternity leave. Females:14 weeks and paid at 2/3 of their normal salary
Paternity leave. (Up to 12 months) Either parent after maternity leave ends. 2/3 of normal wages Bereavement leave. Up to five days of paid leave for the death of a relative
Hospitalization leave. Up to three unpaid months off annually to nurse sick or injured relatives.
Menstruation leave. Female employees who opt out of work due to their health condition
Civil duty leave. Unpaid time off work to vote, perform jury duty, or attend to their civil obligations.
Employment termination
Contract termination is challenging, and employees can demand severance of a month’s pay for every year worked.
Notice period. 30 days advance notice or compensation
Severance pay. No requirements for severance packages under Japanese labor laws.
Probation periods. Varying lengths.
