Employee Leasing Japan

As a major global economy, Japan presents significant opportunities for business expansion. The country boasts world-class infrastructure, particularly in information and communication technologies and transportation.

About Employee Leasing in Japan

Japan also has a large, affluent consumer market, making it an attractive destination for businesses seeking to grow with reduced risks.

Employee leasing in Japan is made straightforward through the services provided by FMC Group, allowing clients to fully capitalize on the Japanese market at a lower cost. Through employee leasing, businesses can achieve rapid growth by focusing entirely on their growth strategies, while FMC Group manages all administrative and legal requirements related to expansion and employee management.

Get in Touch with Us

Stephan Dorn
Managing Partner

Advantages of Employee Leasing in Japan

Employee leasing in Japan allows businesses to reduce labor costs and quickly expand into the Japanese market without the complexities of setting up a local subsidiary. By utilizing employee leasing, companies can bypass the administrative and legal procedures involved in direct employment, ensuring a smoother market entry.
Leasing employees in Japan provides unmatched flexibility, enabling businesses to scale operations rapidly while minimizing expenses. This approach also allows companies to enter and exit the market with ease, adapting to changing business conditions.
With employee leasing, businesses can focus on their growth strategy and core operations, while FMC Group handles the legal, regulatory, and administrative management of employees, ensuring compliance with Japan’s labor laws.

Employee Leasing Services Offered by FMC Group

Selecting candidates according to the client’s needs;
Recruiting the best candidates after interviews;
Negotiating employment contracts with the client’s best interests in mind;
Managing the payroll according to international standards;
Paying taxes, social contributions, and other expenses according to local regulations;
Monitoring employee vacation days and other benefits according to the employment contract;
Negotiating and implementing private health insurance for employees if needed;
Maintaining day-to-day communication with clients about their employees.

Management and Reporting Flow of Employee Leasing Services

Advantages of the Japanese Market

Economic Stability
Japan’s economy is highly stable, consistently recovering from global crises. Despite challenges like stagnation and natural disasters, Japan remains one of the world’s largest economies.
Technological Leadership
Japan is a global technology leader, with strong emphasis on innovation in AI, robotics, and biotech. The government’s R&D initiatives support continued technological advancement.
Advanced Infrastructure
Japan boasts an efficient transportation network, including the renowned Shinkansen, extensive highways, modern ports, and well-connected airports.
Mature Consumer Market
With a population of 125 million and high purchasing power, Japan has a mature, stable consumer market, particularly in sectors like technology and luxury goods.
Financial Hub
Japan’s financial market is one of the largest globally, with a well-regulated environment that attracts international investment.

Recruitment in Japan

Minimum Wage and Payroll
The minimum wage averages ¥1,000 per hour nationwide, with Tokyo’s rate at ¥1,072 per hour. Salaries are typically paid monthly, on the 25th.
Bonuses
While not legally required, 13th-month bonuses are common, typically paid in summer and winter.
Work Culture and Benefits
Japan’s work culture is known for long hours, though reforms are improving work-life balance. Benefits include social security, health insurance, and retirement plans, with additional allowances for housing and transportation.

Taxes

Taxable Income	Tax Rate
0 – 1,950,000	5%
1,950,000 – 3,300,000	10%
3,300,000 – 6,950,000	20%
6,950,000 – 9,000,000	23%
9,000,000 – 18,000,000	33%
18,000,000 – 40,000,000	40%
over 40,000,000	45%

*local currency

6 months: 10 days
1.5 years: 11 days
2.5 years: 12 days
3.5 years: 14 days
4.5 years: 16 days
5.5 years: 18 days
6.5 years and beyond: 20 days

New Year’s Day
Coming of Age Day
Foundation Day
Vernal Equinox Day
Showa Day
Constitution Memorial Day
Greenery Day
Children’s Day
Marine Day
Mountain Day
Respect for the Aged Day
Autumnal Equinox Day
Health and Sports Day
Culture Day
Labour Thanksgiving Day
The Emperor’s Birthday

Parental Leave and Sick Leave
New mothers are eligible for 14 weeks of paid maternity leave, receiving two-thirds of their regular salary. This leave can be taken anytime from the third month of pregnancy up to eight months after childbirth. Recent legislative updates now grant fathers up to four weeks of paternity leave, within eight weeks of their child’s birth, at 80% of their regular salary. Fathers have the option to take this leave as one continuous period or split it into two separate intervals.
An employer is generally not required to provide paid leave for an employee absent due to illness or injury, unless it is stated in the employment contract.

Notice Period
In Japan, the notice period for terminating an employment contract depends on the length of service. For less than three months, it’s at least one week; for three months to one year, at least one month; and for over one year, at least two months. These periods may vary based on the employment contract or collective agreements, and payment in lieu of notice is also possible.

Disclaimer: Although we carefully researched and compiled the above information, we do not give any guarantee with respect to the actuality, correctness, and completeness.