In late 2020, Japan experienced a strong recovery after the introduction of sanitary measures. In early 2021, however, new regulations were introduced and impacted the Japanese economic growth projections. Despite this setback in near-term prospects, Japan’s GDP is still projected to grow by 2% through 2022 as global conditions improve over time. According to Deloitte, the Japanese economy is supposed to enter its path to recovery as soon as the second half of 2021. Hopefully, the country’s robust vaccination program and strong manufacturing sector will lead the Japanese economy out of its current slump. At the same time, the Olympic Games fever should provide a boost as well. In 2019, Japan ranked #19 in the World Bank’s Ease of Doing Business index (Sources: OECD, Deloitte, and Reuters).
A trusted professional employment organization with in-depth knowledge of the market in Japan, XML International provides you with end-to-end personalised solutions to recruit and manage remote team members for your activities in Tokyo or any other city in Japan, regardless of the size of your organisation or your industry.
Employees will be employed pursuant to local labour laws, and all required social security and taxation will be paid to the local Authorities.
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Japanese Yen JPY
Minimum wage in Japan is 902 JPY per hour and 1,013 for Tokyo area.
Working hours are 8 hours a day and 40 hours a week.
Workers are initially entitled to 10 days of annual leave after 6 months of employment. After that, workers who have been employed continuously for at least one and a half years are granted one additional day’s leave for each year of service. The maximum number of annual paid leave days may not exceed by 20 days.
There is no mandatory sick leave in Japan. When workers get sick they will use their paid vacation in order to take leave of absence.
Maternity leave in Japan covers a period of 6 weeks prior to the expected due date to 8 weeks after giving birth. Employee may return to work earlier after getting approval by a medical doctor.
Fathers are entitled to 12 months paid childcare leave. Childcare leave starts from the day after the maternity leave ends to the day before the child reaches the age of 1. During leave , payment is covered by the labour insurance.
The law stipulates the fixed notice period of at least 30 days. Such notice period may be shortened by the number of days for which the employer pays the indemnity in lieu of notice. The duration of the notice period is always the same regardless of an employee’s seniority or other factors.
Probation periods are allowed under Japanese law and there are no regulations on the term.
The standard VAT rate is 10%.
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XML International, one of the best workforce solutions and employer of record services providers for Japan, supports the set-up and the management of your international workforce for all your activities in Japan. Our invaluable input consists of streamlining and handling for you the complete employment lifecycle of your teams in Japan. We give you all the keys to handle you staff in Tokyo or any city in Japan. XML’s knowledge of Japan labour laws, tax and social security system, and employment regulations allows you to tackle the challenges of local compliance in Japan, navigate all the local complexities and avoid pitfalls.
Among our top priorities, compliance with Japanese employment regulations and labour laws is number one. In addition to talent acquisition, recruitment services, and workforce management, we also ensure that our clients’ workforce management in Japan is aligned with Japanese tax and social security rules and the latest immigration processes, including visas and work permits.
Here is the list of our core services supporting your activities in Japan.
Take advantage of the targeted outsourcing solutions proposed by XML International for your expansion in Japan or for your employees already based there. We offer a comprehensive series of bespoke and scalable outsourcing solutions specially designed for the Japanese market.
They range from professional employer organization employment (PEO), employer of record, and contingent workforce employment services, to help you grow effortlessly and successfully in Japan without any complications. We can also help you source, recruit, and onboard new team members locally, even if you don’t have an office in Japan.
XML provides you with everything you need to start doing business in Japan or to optimize your business if you are already operating there, leading to significant bottom-line savings and getting your business activities up and running in just days. Get in touch with the XML team to learn how we can boost your activities in Japan in a cost-effective way.
Get started now and make the most of business in Japan today!
XML has expertise and resources to meet your organization’s workforce needs wherever, and in whichever field these might be.