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Employer of record in Japan

32 sourced figures on hiring in Japan, drawn from 8 sources and normalized for comparison: statutory rules, employer cost and exactly what an EOR covers locally. Every figure is dated.

ISO JPRegion AsiaCurrency JPYLanguages JapaneseVerified 2026-10-04

Hiring here: moderately complex, mid-range on cost, and fast to hire via EOR.

cost of employment
MODERATE
33.1% tax and mandatory contributions wedge, 29.74% corporate tax
ease of exit
MODERATE
moderate worker protection (2.08 / 6)
speed to hire
DAYS
44 EOR providers, from $199/mo
Employer burden rank
statutory employer burden: cost, severance, notice
#106 of 192
Each band is derived from the 32 sourced fields below and recomputed on every refresh. See the methodology.
Statutory snapshot

Employer of record in Japan: the statutory snapshot

The headline employer costs, pay floor and worker protections for hiring in Japan through an employer of record, each figure sourced and dated. 44 EOR providers cover Japan.

Minimum wageJPY 182,726/moILOSTAT, 2024-01-01
Employer social security15.66%OECD
Tax and mandatory contributions wedgeOECD, taxes plus non-tax compulsory payments such as mandatory private pension and health contributions33.1%OECD
Corporate tax29.74%OECD, 2026-01-01
Average income tax7.95%OECD
Notice period4.3 weeksNational government, 2026-09-12
SeveranceNoneWorld Bank Employing Workers / B-READY, 2019-05-01
Annual leave (minimum, once eligible)10National government, 2026-09-12

As of 2026-10-04. Each value is the winning figure from primary and harmonized sources, resolved by a documented priority chain. Full record with provenance below.

Reading the data

What the figures say about Japan

The statutory minimum wage in Japan is JPY 182726 per month (ilostat, 2024), against an average monthly wage of JPY 307400 per month for employees (ilostat, 2021). On top of pay, employers face a social security rate of 15.66% and employees pay 14.7% (OECD, 2025), which together sit within a tax and mandatory contributions wedge of 33.1%. Corporate tax is set at 29.74% (OECD, 2026). Ending a contract carries a statutory notice period of 4.3 weeks, and the World Bank records no statutory severance (0 weeks). Employment protection scores 2.10 on a 0-6 scale for regular contracts and 1.32 for temporary ones (OECD, 2025). Statutory entitlements include 10 days of annual leave and 16 public holidays, plus 14 weeks of maternity leave, 8 weeks of paternity leave and 52 weeks of parental leave (national government, 2026). Average annual hours worked come to 1598 hours per year (OECD, 2025).

Written from the 27 sourced figures on this page and regenerated whenever the data changes. Last generated 2026-10-04. How our data works is on the methodology page.

Where to start

Three ways to hire in Japan

Own entity

You are the employer. Lowest per head cost at scale, months to establish.

Best for large, permanent headcount.
EORfastest

You direct the work, the provider's local entity is the employer on paper. Compliant in days.

See the 44 providers below ↓
Best for 1 to 50 hires, for speed, or to test a market.
Contractor

Not your employee. Fastest and cheapest, with misclassification exposure.

Best for genuinely independent, short term work.
Compare entity setup cost against EOR fees for Japan →

The full record

Every figure behind the snapshot

Not a guide, a record: 32 figures for Japan from 8 sources, last refreshed 2026-10-04. Each value carries its source and the date it was pulled. Hover any provenance tag for the full chain.

employment & pay7 fields
Minimum wage
JPY 182,726/mo
ILOSTAT · 2024-01
Average monthly wage
JPY 307,400/mo
ILOSTAT · 2021-01
Average wage
$50,183/yr
OECD · 2025-01
13th salary
Customary
ILO EPLex · 2026-01
Hours worked
1,598 hrs/yr
OECD · 2025-01
Statutory weekly hours
40 hrs/wk
National government · 2026-09
Actual weekly hours
37 hrs/wk
ILOSTAT · 2020-01
cost & taxes7 fields
Employer social security
15.66%
OECD · 2025-01
Employee social security
14.7%
OECD · 2025-01
Tax and mandatory contributions wedgeOECD, taxes plus non-tax compulsory payments such as mandatory private pension and health contributions
33.1%
OECD · 2025-01
Corporate tax
29.74%
OECD · 2026-01
Average income tax
7.95%
OECD · 2025-01
Top income tax rate
45%
National government · 2026-09
VAT / GST
10%
National government · 2019-10
termination5 fields
Protection (EPL overall)
2.08 / 6
OECD · 2025-01
Protection (regular contracts)
2.10 / 6
OECD · 2025-01
Protection (temporary contracts)
1.32 / 6
OECD · 2025-01
Severance
None
World Bank Employing Workers / B-READY · 2019-05
Notice period
4.3 weeks
National government · 2026-09
leave5 fields
Maternity leave
14 weeks
National government · 2026-09
Paternity leave
8 weeks
National government · 2026-09
Parental leave
52 weeks
National government · 2026-09
Annual leave (minimum, once eligible)
10
National government · 2026-09
Public holidays
16
National government · 2026-09
labour market8 fields
Unemployment
2.7%
OECD · 2026-01
Inflation
3.17%
World Bank Open Data · 2025-01
GDP per capita
$35,951
World Bank Open Data · 2025-01
GNI per capita
$38,340
World Bank Open Data · 2025-01
Labour force
69.5M people
World Bank Open Data · 2025-01
Collective bargaining coverage
15.2%
OECD/AIAS ICTWSS · 2023-01
Union density
16.2%
OECD/AIAS ICTWSS · 2024-01
Retirement age
65 yrs
OECD Pensions at a Glance · 2024-01

The differentiator

What an EOR handles in Japan

An EOR removes the entity and the payroll machinery. It does not remove your obligations as the people manager.

obligationeor coverswhat that means for you
Legal employer of record● fullThe EOR's local entity is the employer on paper. No entity setup required.
Payroll, tax & social security● fullGross-to-net, statutory withholding and employer contributions remitted locally. Employer social security here is 15.66% and a 13th salary is customary but not required.
Compliant local contract● fullDrafted to local labour law and language requirements. Here statutory notice is 4.3 weeks and the wage floor is JPY 182,726/mo.
Statutory leave & public holidays● fullAccrual, tracking and payment run through the local payroll the EOR operates. 10 annual leave, 16 public holidays and 14 weeks maternity leave.
Statutory severance on exit● partialThe EOR computes and processes it, but the cost is billed to you (often pre-funded). There is no statutory severance here.
Termination decision & risk● partialThe EOR runs the legal process; the business reason, timing and exposure stay yours. Worker protection here scores 2.08 / 6 on the OECD index.
Work permits / visas (foreigners)● partialSome providers sponsor, many don't. Confirm per provider in the table below.
Performance management● noneDay-to-day direction, reviews and PIPs are entirely on your side.
Equity / ESOP administration● noneCross-border equity handling sits outside standard EOR scope.

Provider × country

Who can employ in Japan

44 providers operate an EOR in Japan, ranked by Select Score.

providerfrom / moselect score
Pebl (formerly Velocity Global) logoPebl (formerly Velocity Global)SELECT PICK$399/mo80
Multiplier logoMultiplier$459/mo · Core · billed annually80
Payoneer Workforce Management logoPayoneer Workforce Management$199/mo79
RemoFirst logoRemoFirst$199/mo77
Remote logoRemote$699/mo76
Globalization Partners logoGlobalization PartnersQuote74
Remote People logoRemote People$199/mo74
Deel logoDeel$599/mo73
Show all 44 providers ↓
Rivermate logoRivermate$319/mo72
Borderless AI logoBorderless AI$579/mo71
Playroll logoPlayroll$399/mo71
Papaya Global logoPapaya Global$499/mo68
Native Teams logoNative Teams$99/mo67
Lano logoLano€499/mo66
Rippling logoRipplingQuote66
Thera logoTheraQuote65
Oyster logoOyster$699/mo65
Asanify logoAsanifyQuote65
Wisemonk logoWisemonk$99/mo63
Atlas HXM logoAtlas HXM$599/mo62
Teamed logoTeamed$599/mo62
Foxhire logoFoxhireQuote61
GoGlobal logoGoGlobalQuote60
Dhi ADT logoDhi ADT€449/mo60
Agility EOR logoAgility EOR$599/mo59
HSP logoHSPQuote59
Cadana logoCadanaQuote58
BGC Group logoBGC GroupQuote57
Acclime logoAcclimeQuote56
NNRoad logoNNRoadQuote56
44 providers operate an EOR in Japan, ranked by Select Score. Price is each provider’s lowest published EOR rate (global, not country-specific).
See the ranked best EOR in Japan →
Scored by the EOR Select rating systemSee the methodology →Built and maintained by Robbin SchuchmannUpdated 2026-10-04

Comparing EOR options for Japan?

Run a side-by-side on the providers that actually operate there.

Open the matrix →