Employer of record in Japan
31 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.
Hiring here: moderately complex, mid-range on cost, and fast to hire via EOR.
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 wage | JPY 182,726/mo | ILOSTAT, 2024-01-01 |
|---|---|---|
| Employer social security | 15.66% | OECD |
| Tax and mandatory contributions wedgeOECD, taxes plus non-tax compulsory payments such as mandatory private pension and health contributions | 33.1% | OECD |
| Corporate tax | 29.74% | OECD, 2026-01-01 |
| Notice period | 4.3 weeks | National government, 2026-09-12 |
| Severance | None | World Bank Employing Workers / B-READY, 2019-05-01 |
| Annual leave (minimum, once eligible) | 10 | National government, 2026-09-12 |
| Public holidays | 16 | National government, 2026-09-12 |
As of 2026-10-16. 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
In Japan the average annual wage is $50183 per year, earned over an average of 1598 hours worked per year, with actual weekly hours at 37 hours per week. On top of wages, employers pay a social security rate of 15.66%, while employees contribute 14.7%, and the tax and mandatory contributions wedge stands at 33.1%. Exit costs look light on paper: statutory severance is none (0 weeks) and the statutory notice period is 4.3 weeks, with employment protection scoring 2.08 on a 0-6 scale. Regular contracts score 2.10 and temporary contracts 1.32 on that same scale. Leave owed to employees includes 10 days of statutory annual leave, 16 public holidays, 14 weeks of maternity leave, 8 weeks of paternity leave and 52 weeks of parental leave. Collective bargaining coverage is 15.2%, and union density is 16.2%.
Where to start
Three ways to hire in Japan
You are the employer. Lowest per head cost at scale, months to establish.
You direct the work, the provider's local entity is the employer on paper. Compliant in days.
See the 44 providers below ↓Not your employee. Fastest and cheapest, with misclassification exposure.
The full record
Every figure behind the snapshot
Not a guide, a record: 31 figures for Japan from 8 sources, last refreshed 2026-10-16. Each value carries its source and the date it was pulled. Hover any provenance tag for the full chain.
// recent updates
What changed in Japan
Checked against official sources on 16 October 2026
No rule changes recorded since we began logging them.
Every figure is sourced and dated. How we verify the data →
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.
Provider × country
Who can employ in Japan
44 providers operate an EOR in Japan, ranked by Select Score.
Comparing EOR options for Japan?
Run a side-by-side on the providers that actually operate there.