Japan Payroll Solutions

Contractors in Japan can be set up as Employees.

Tax year – The tax year is the calendar year for individuals.

Immigration – We are only able to assist with employment of local nationals, we do not have a visa or work permit
option.

Workr Fees – $1,000 per month plus €350 set up fee and $350 termination fee.

Employment Summary

Registration – The candidate will need to provide their Individual Number (nicknamed “My Number”) which is a 12-digit numbers assigned to individuals living in Japan under the Social Security and Tax Number System.

Contract – There are 3 types of contract in Japan a Permanent Employee, known as Sei-sha-in, a Contract Employee,
known as Keiyaku sha-in and an Outsourced or Temporary Employee, known as Haken sha-in. It is this third type of
contract that is used.

Employers social security – contributions are made to 5 different government departments at differing levels. As a result the amount can vary between 15.3% – 24.73%.

Pension = 9.15%
Health insurance = 4.935%-5.815%
Unemployment insurance = 0.6%
Work injury = 0.25%-8.8%
Family allowance = 0.36%

Employees social security – contributions are made to 3 different government department at fixed rates making the total contribution 14.39%

Pension = 9.15%
Health insurance = 4.935%
Unemployment insurance = 0.3%

Tax – Income tax ranges from 5-45%.

Benefits – Each calendar year, an employee is entitled to receive paid leave, the amount they receive will depend on
their length of service but it will range from 10-20 days.

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