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June 14, 2023
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3 mins
The Japanese people are known for their politeness, organizational skills, and strong work ethic, making them a valuable asset in the global workforce. As one of the most developed countries in the world, Japan boasts a robust economy, ranking third in terms of nominal GDP and fourth in terms of Purchasing Power Parity (PPP) GDP. With an impressive track record of foreign direct investments (FDI), totaling over $220 billion annually, Japan continues to attract global attention. Join us as we uncover the crucial insights and strategies for successful hiring in this dynamic and vibrant country.
Expanding your operations in Japan can greatly benefit from onboarding Japanese employees. To start this journey, it is crucial to familiarize yourself with the country's labor regulations. In the following section, we will guide you through the essential steps of the onboarding process, equipping you with the knowledge to successfully integrate Japanese talent into your organization.
There is no required language in Japanese employment contracts, provided it is written in a medium that all parties understand. However, most employers use the Japanese language for these documents
Employees in Japan are paid monthly.
Minimum wage in Japan varies across different cities. It ranges from 790 JPY — 1,041 JPY.
Overtime Pay in Japan is specified based on the time and day that the extra work is performed.
A 13th month pay is not mandatory in Japan. However, most employers offer these incentives for their employees as a winter bonus, usually paid around December.
Japanese employees are entitled to numerous benefits during their employment. Below are some of them:
General Consumption Tax in Japan is 10%.
Employers terminating their employees must provide a notice of termination informing them of the reasons for the decision. In cases of summary dismissal, an employer may do so without any notice but must pay their employees 30-days worth of wages, known as a “notice allowance.”
A notice period of up to 30 days is generally observed in Japan.
A severance pay is not mandatory in Japan.
According to the Japan Immigration Authority, foreign workers can legally work in the country if they have secured a Japanese work visa.
Below are the types of visas in Japan:
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If you are hiring employees or contractors in Japan, it's essential to understand these policies and ensure compliance with local laws. Book a demo at https://niural.com or DM us to learn more about compliant payroll and hiring practices in Japan.
Follow @niuralhq for more insights on compliant payroll globally.
