Employees in Japan

Overview by Globlatrade.net:

Working Conditions

Opening Hours
  • Legal Weekly Duration
8 hours per day and 40 hours per week
But employees frequently work 50 or 60 hours a week. Compared with the United States, the United Kingdom, France and Germany, Japanese employees work the most (in hours worked in industry).
It is also the country with the least annual vacation (weekly rest day and paid holidays included).
  • Maximum Duration
10 hours per day and 52 hours per week
  • Night Hours
10 pm until 5 am
Working Rest Day
According to the labor standard law, employees should have one day off for every week of work, or alternatively, 4 days off for every 4 weeks of work.
There is no particular law establishing certain days of the week as days off or making national holidays days off. This is generally determined by the company. In general, Saturday and Sunday are not working days, but this is not the case in all companies.
Paid Annual Vacation
Only for employees who have been employed more than six months and showed up for work more than 80% of the time.
10-20 days of annual paid vacation per year, depending on how long one has worked.
Retirement Age
Age 65 with a minimum of 25 years of contributions. An early pension is payable between ages 60 and 64
Child Labor and Minimum Age For Employment
15 years
Informal Labor Market
Because of the flexible regulation of the labor market, informal labor is not developped.

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The Cost of Labor


Minimum Wage
There are three types of minimum wage:
- Local minimum wage
- Local industry-specific minimum wage- national industry
- Specific minimum wage.
The prefectures set the amount of local minimum wages. Minimum wages (general and industry-specific) set by the prefectures are around JPY 668 per hour.
Average Wage
Average annual gross earnings in Japon is JPY 2,899,413 (USD 30,000).
Other Forms of Pay
  • Pay For Overtime
25% more than regular wages
  • Pay For Rest Days Worked
35% more than regular wages
  • Pay For Night Hours
25% more than regular wages
  • Pay For Overtime at Night
50% more than regular wages

Social Security Costs

The Areas Covered
Medical insurance (government-managed health insurance) 7.43% (standard salary monthly portion 8.5%, bonus portion 0.8%)
Pension insurance (employees’ pension) 13.58% (standard salary monthly portion 17.35%, bonus portion 1%)
Unemployment insurance 1.15%
Contributions Paid By the Employer: 10.89%
Contributions Paid By the Employee: 11.27%
Competent Organization
Social Insurance Agency

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