Payroll in Japan runs in JPY on a monthly payroll is standard, typically paid by the 25th of the month. cycle, with statutory employer contributions and no statutory 13th-month payment, but seasonal bonuses (summer and winter) are a strong customary practice at most employers, though not legally mandated.. Gracemark operates it end-to-end, humans, not tickets.
Currency
JPY, Japanese yen
Payroll cycle
Monthly payroll is standard, typically paid by the 25th of the month.
Working week
Statutory standard hours are 8 hours/day and 40 hours/week under the Labor Standards Act; overtime beyond this requires a Article 36 (Saburoku) agreement and premium pay of at least 25% (50% for very long overtime, 35% for late-night/holiday work).
Minimum wage
Minimum wage is set regionally by prefecture; the FY2024 revisions raised rates nationally, e.g. Tokyo at JPY 1,163 per hour effective October 2024, with lower rates in other prefectures (national weighted average approximately JPY 1,055/hour).
13th-month
No statutory 13th-month payment, but seasonal bonuses (summer and winter) are a strong customary practice at most employers, though not legally mandated.
Employer cost
Employers contribute to health insurance, welfare pension (kosei nenkin, around 9.15% employer share), employment insurance and workers' accident compensation insurance, with combined employer social insurance costs typically around 15-16% of gross salary.
Probation
Probation periods are commonly 3-6 months by contract; termination during probation still requires just cause under Japan's strict dismissal standards.
Notice period
At least 30 days' advance notice (or payment in lieu) is required under the Labor Standards Act; Japan's case law imposes a very high bar for valid dismissal, making mutual-agreement separation the common practical route.
Two ways to run payroll in Japan
Own-entity payroll
For long-term presence in Japan. Gracemark manages statutory filings, pay runs, and year-end reporting under your entity, with a named operator on Eastern Asia time.
EOR-run payroll
No entity in Japan? Employ and pay talent under Gracemark's local infrastructure via EOR, onboard in 2–3 weeks (eor), no local incorporation.
Compliance essentials in Japan
Dismissal is very hard, 'objectively reasonable' cause required
Large summer and winter bonuses are customary, not statutory
Paid leave starts at 10 days and grows with tenure
Social-insurance enrollment is mandatory and ~15%
Language and seniority norms shape hiring
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