FAQ

September 29, 2017

What are the rules for paying employees?

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.
October 23, 2017

How is overtime calculated in Japan?

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.
November 20, 2017

Is there a minimum wage in Japan?

In general, employers and employees are given expansive freedom to agree to any type of employment contract they wish.  However, the Labor Standards Act contains a series of protections for employees that restrict employers’ ability to draft unfair employment agreements.  The minimum wage is among these protections.  Even if an employee agrees to a salary below the minimum wage, labor law demands that the salary be raised to the minimum level.
December 8, 2017

Does a company have to give notice before firing an employee in Japan?

In Japan, employers must usually give at least 30 days notice before terminating an employee’s employment contract.  If the employer gives less than the required notice, he or she must make up for the lack of notice by paying a full day’s salary for each day the notice was insufficient.