What are the rules for paying employees?

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Employees in Japan must be paid at least once per month and on a specified date.  The wage must also be at least the minimum wage guaranteed by the prefecture where the employee works.  Employers are allowed to deducted social insurance premiums, taxes and other expenses from an employee’s wages.  Wages may be deposited directly into an employee’s bank account with the employee’s approval.

Wages in Japan are usually paid on a monthly basis (although smaller pay periods are permitted) with optional twice yearly bonuses awarded in summer and winter.  Many Japanese companies also include a transportation allowance covering an employee’s commute to work.

If you have any questions about hiring or firing employees for your business in Japan, please contact our office for a legal consultation.