How is overtime calculated in Japan?

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The rate of overtime pay in Japan varies by the type of overtime the employee is performing.  For example, working in excess of statutory working hours will result in overtime pay of 125% of an employee’s salary, while hours worked late at night in excess of statutory working hours exceeding 60 hours in a month should be paid at 175% of an employee’s base hourly salary.  In addition to these two types of overtime there are a variety of other situations that result in different pay scales being applied.

Because the Japanese overtime system is so context-specific, it is highly recommended that you discuss your situation with an attorney if you believe that your employer is not paying the appropriate amount of overtime pay.

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