Employer of record in Japan: social insurance, costs and rules
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In Tokyo, an employee on JPY 500,000 a month costs the employer 15.70% on top of pay in social insurance (16.51% if aged 40 to 64), with the 9.15% employees' pension share the largest piece, based on Japan Pension Service and Kyokai Kenpo rate tables (checked October 16, 2026); the EOR's own charge runs from $199 a month (Payoneer Workforce Management, formerly Skuad) to $699 (Oyster), checked October 16, 2026. Bonuses are levied too: the summer and winter bonuses that Japanese offers usually include are customary rather than required, but once paid they attract social insurance.
An employer of record in Japan is a Japanese company that employs your hire, enrolls them in employees' pension, health and employment insurance, and runs the monthly payroll, while you manage their work.
- Employer cost on a sample salary
- 15.70% (16.51% if aged 40 to…on top of gross pay
- Currency
- JPY
On this page
Employment costs and rules in Japan
| Item | Japan |
|---|---|
| Employer social contributions | About 15.7% (16.5% for employees aged 40 to 64) at JPY 500,000 a month in Tokyo |
| What the employer pays | Employees' pension 9.15% (18.3% total, split equally); health insurance Tokyo kyokai kenpo 4.925% (9.85% total, from March 2026 pay); long-term care 0.81% for ages 40 to 64 (1.62% total); child-rearing support levy 0.23% total from April 2026 pay (split assumed equal); child-rearing contribution 0.36% employer only; employment insurance 0.85% general business (1.35% total), 0.95% agriculture etc., 1.05% construction (FY2026); workers' compensation employer only 0.25% to 8.8% by industry (0.3% other businesses, 0.25% finance/insurance/real estate) |
| Caps and ceilings | Pension standard monthly remuneration grades JPY 88,000 to 650,000; health insurance max grade 50 at JPY 1,390,000 a month. Bonuses are also levied (bonus caps not checked). Employment insurance and workers' comp have no cap |
| Employee contributions | About 14.69% (pension 9.15, health 4.925, support levy 0.115, employment insurance 0.5) plus 0.81% care at 40 to 64 |
| Minimum wage | Prefectural. Tokyo JPY 1,280 an hour from 1 Oct 2026 (was JPY 1,226) |
| Mandatory bonuses | None statutory (summer and winter bonuses are customary, not required) |
| Annual leave | Granted after 6 months of continuous service with 80%+ attendance (day count unconfirmed today; commonly 10 days, rising with service) |
| Notice period | At least 30 days' advance notice of dismissal, in principle (or pay in lieu) |
| Severance | No statutory severance; company retirement allowances are contractual |
| Payroll frequency | At least once a month on a fixed date |
| Standard work week | 40 (8 a day); 44 in certain small industries |
| Sample salary used | JPY 6,000,000 a year (JPY 500,000 a month, no bonus) |
| Employer cost on that salary | 15.70% (16.51% if aged 40 to 64) |
Checked October 16, 2026. Source type: official. Sources are listed at the end of this page.
What an EOR charges to employ someone in Japan
| Provider | EOR fee per employee per month | Deposit | Entity model (provider claim) |
|---|---|---|---|
| Payoneer Workforce Management | from $199 | None listed | Claims owned entities across APAC, MEA, Europe and the Americas |
| Pebl | $399 | Not listed | About 90% of employees on Pebl-owned entities |
| Playroll | from $399 | One month's salary per employee, refundable | No clear owned-entity claim |
| Rivermate | $319 to $639 | Not stated | Claims 38 owned entities |
| Multiplier | $459 (annual) or $499 (monthly) | Sized from costs, fees and notice period (method published, no fixed amount) | Claims owned entities in 160+ countries |
| Rippling EOR | Quote only (third-party reference: $499) | Not listed | Claims Rippling entities; no partner mention |
| Deel | $599 | Not stated by Deel | Claims owned entities in 130+ countries |
| Remote | from $599 | Waived for startups; otherwise not stated | Claims 100% owned entities in 90+ countries |
| Atlas | from $599 | Not published | Claims owned entities in 160+ countries |
| Papaya Global | from $650 | Refundable deposit, amount not stated | Uses in-country partners |
| Oyster | $699 | At least one month of total service cost, refundable (per its terms) | Owned entities and partners |
| Globalization Partners (G-P) | Quote only | Not stated | Information page claims 100+ wholly owned entities |
Source: each provider’s pricing page, checked October 16, 2026. Fees are the provider’s charge on top of salary and the employer contributions above. Some providers adjust prices by country.
Tokyo example: JPY 6,000,000 a year
| Line | Per month | Per year |
|---|---|---|
| Salary | JPY 500,000 | JPY 6,000,000 |
| Employees' pension, 9.15% | JPY 45,750 | JPY 549,000 |
| Health insurance, 4.925% | JPY 24,625 | JPY 295,500 |
| Support levy, 0.115% | JPY 575 | JPY 6,900 |
| Child-rearing contribution, 0.36% | JPY 1,800 | JPY 21,600 |
| Employment insurance, 0.85% | JPY 4,250 | JPY 51,000 |
| Workers' compensation, 0.3% | JPY 1,500 | JPY 18,000 |
| Employer cost (15.70%) | JPY 78,500 | JPY 942,000 |
| Salary plus employer cost | JPY 578,500 | JPY 6,942,000 |
| EOR fee at $599 | USD 599 | USD 7,188 |
Premiums: Japan Pension Service, Kyokai Kenpo Tokyo (r08), MHLW. Fee kept in dollars ($599 at Deel and Remote) because no yen rate was confirmed. Checked Oct 2026.
The line items add up: 45,750 + 24,625 + 575 + 1,800 + 4,250 + 1,500 = JPY 78,500, or 15.70% of JPY 500,000. For an employee aged 40 to 64, long-term care adds JPY 4,050 a month, taking the total to JPY 82,550 (16.51%). A bonus would add premiums on top; we did not check the bonus caps.
Which provider to use in Japan
| Provider | Our score | EOR fee per month | Entity model |
|---|---|---|---|
| Multiplier | $459 (annual) or $499 (monthly) | Own legal entities in every country (claim) | |
| Oyster | $699 | Owned entities and partners | |
| Remote | from $599 ($699 in a March 2026 help article) | 100% owned entities in 90+ countries (claim) | |
| Deel | $599 | Wholly owned entities in 130+ of 150+ countries (claim) |
Scores published by HRPricing on October 17, 2026; prices and entity claims from provider sites, October 16, 2026.
Japanese payroll has many moving parts, and mistakes surface in reviews: on September 26, 2026 a Deel user wrote on Trustpilot that a Japan resident tax deduction had been missed. Before signing, ask for a sample payslip showing every premium line. How we rank: scoring explained. Wider comparison: the EOR rankings and the Deel, Remote and Oyster reviews.
Your own kabushiki kaisha or an EOR
A Japanese subsidiary must enroll staff in shakai hoken and labor insurance itself and keep prefecture-specific health rates current. Three EOR hires at $599 cost $21,564 a year in fees. Our EOR versus own entity guide covers the point at which a subsidiary pays off. For more countries, see the EOR cost index.
Gyomu itaku: contractors in Japan
A contractor agreement skips the 15.70% employer premiums. If the person keeps set hours under your direction, the unpaid shakai hoken becomes the exposure. Compare contractor management platforms or a contractor of record for freelance work.
Frequently asked questions
What does an employer of record in Japan cost?
What are the 2026 employer social insurance rates in Tokyo?
Are bonuses mandatory in Japan?
How much notice is required to dismiss an employee in Japan?
What is the minimum wage in Tokyo?
Sources (16)
- Trustpilot: Deel reviews (review of Sep 26, 2026, checked Oct 16, 2026)
- Pebl: Pebl EOR pricing (checked Oct 16, 2026)
- Playroll: Playroll pricing (checked Oct 16, 2026)
- Multiplier: Multiplier pricing (checked Oct 16, 2026)
- Deel: Deel pricing (checked Oct 16, 2026)
- Remote: Remote pricing (checked Oct 16, 2026)
- Oyster: Oyster pricing (checked Oct 16, 2026)
- Payoneer Workforce Management (formerly Skuad): Skuad pricing (checked Oct 16, 2026)
- kyoukaikenpo.or.jp/about/business/insurance_rate/rate_prefectures/r08 (checked October 16, 2026)
- kyoukaikenpo.or.jp/~/media/Files/shared/hokenryouritu/r8/ippan/13to... (checked October 16, 2026)
- nenkin.go.jp/service/kounen/hokenryo/ryogaku/ryogakuhyo/index.html (checked October 16, 2026)
- nenkin.go.jp/service/kounen/hokenryo/hoshu/20150515-01.html (checked October 16, 2026)
- mhlw.go.jp/content/001672589.pdf (checked October 16, 2026)
- jsite.mhlw.go.jp/kanagawa-roudoukyoku/hourei_seido_tetsuzuki/roudou... (checked October 16, 2026)
- jsite.mhlw.go.jp/tokyo-hellowork/list/kiba/minimum-wage-information... (checked October 16, 2026)
- jsite.mhlw.go.jp/tokyo-foreigner/english/seekers_1/spec/spec_1c.html (checked October 16, 2026)
This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.