Hire Employees & Contractors


Compliantly hire your distributed team members in


Person working on laptop

Hiring in


isn't so simple. Borderless can help.

To hire new employees in


, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.

Borderless handles all of that for you, so you can focus on getting to work with your new team member in


while staying fully compliant with local laws and compliance.

Primary Language



Japanese yen (¥, JPY)

Payroll Frequency


Public Holidays

16 days

Employer Taxes


Cost of Living Index

64.59 (2023)

Statutory Leave

10 to 20 days

Sick Leave

0 days

Maternity Leave

14 weeks at 2/3 salary

Important: Risks of misclassification

In many countries like


, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.

Payment Information

Minimum Wage

The average national minimum wage is ¥961. Varies by region and industries ranging from ¥761- ¥1,072  per hour.

Overtime Pay

The maximum overtime is 5 hrs/day, 45hrs/month, 360hrs/year

Additional 25% for weekdays, 35% for weekends and holidays

Additional Pay

There are no additional pay details for Japan.

Payroll Cycle

For all Borderless customers, payments will be made in monthly installments by last day of the month.

Employer Costs & Taxes

  • 9.15%: Pension contribution
  • 4.905% (on a maximum of JPY 1,390,000 of wages per month): Health Insurance Contribution (rates are slightly higher for individuals between the ages of 40 and 65)
  • 0.6%: Unemployment insurance
  • 0.25% - 8.8%: Work injury
  • ~0.36%: Family allowance

Employee Costs & Taxes

  • 5%: Up to ¥1.95M ($17,629.67)
  • 10%: ¥1.95 – ¥3.3M ($17,629.67 - $29,834.82)
  • 20%: ¥3.3M – ¥6.95M ($29,834.82 - $59,579.24)
  • 23%: ¥6.95M – ¥9M ($59,579.24 - $81,367.70)
  • 33%: ¥9M – ¥18M ($81,367.70 – 162,735.41)
  • 40%: ¥18M – ¥40M ($162,735.41 - $361,634.24)
  • 45%: Over ¥40M (Over $361,634.24)

Employment Information

Termination Process

The termination process is most commonly done through negotiating voluntary resignation.

Notice period

Employers are required to give 30 days notice, or compensate for the notice period.

Probation Period

May vary from 3-6 months.

Severance Details

There are currently no severance requirements under the Japanese labour law.

Benefits of working in a country abroad

Borderless Benefits Packages in


When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:

Medical Insurance
Dental Insurance
Vision Insurance
Life Insurance
Retirement Contributions

Learn how to hire quickly and easily in


Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.

Book a demo