Japan

 Published on 09/2018

Japan

PAYROLL & BENEFITS BENCHMARK

Contents: Employees Mandatory Benefits Employees Common (Benchmark) Benefits

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Welcome!

Our vision at Papaya Global is to make global employment as easy and transparent as possible. We are passionate about sharing knowledge and assisting our clients in exploring and reaching out to new markets. All data is compiled from Papaya's knowledge center, comprised of the benefits of over 200 international companies as of June 2018. The benefits collected are from various countries including both mandatory and compulsory requirements. This guide is particularly enlightening due to differences in benefit packages not only from industry to industry but even among companies within the same industries. This guide is to be shared exclusively among verified position holders within organizations responsible for managing employee's benefit plans. Our team at Papaya Global is here to support all needs. Operational in more than 100 countries, our Global HRIS platform can assist in everything from immigration to employment of record, payroll and outsourcing. Do not hesitate to contact us and discover how you can automate your global workforce and gain real control and compliance. We are happy to hear your insights and feedback! Please reach out to us at info@

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Employees Mandatory Benefits in Japan

Public Holidays

They are 16 ? 18 public holidays annually. While there is no legal requirement to pay for public holidays, it's very common to grant those days as paid days off. There is a provision of the law stating that when a national holiday falls on a Sunday, the next working day shall become a public holiday, known asfurikae kyjitsu( "transfer holiday"). Additionally, any day that falls between two other national holidays shall also become a holiday, known askokumin no kyjitsu(literally "citizens' holiday").

List of 2019 holidays: >January 1: New Year's Day >January 14 (second Monday of January): Coming of Age Day >February 11: Foundation Day >March 21: Vernal Equinox Day >April 29: Shwa Day >May 3: Constitution Memorial Day >May 4: Greenery Day >May 5: Children's Day >July 15 (third Monday in July): Marine Day >August 11: Mountain Day >September 16 (third Monday of September): Respect for the Aged

Day >September 23: Autumnal Equinox Day >October 14 (second Monday of October): Health and Sports Day >November 3: Culture Day >November 23: Labor Thanksgiving Day



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Paid Time Off Health Care Insurance Social Security

The Labor Law stipulates the minimum number of paid vacation days for employees. The number of paid vacation days offered is based on the seniority in the company: >6 months seniority: 10 days paid vacation earned >1.5 years seniority: 11 days paid vacation earned >2.5 years seniority: 12 days paid vacation earned >3.5 years seniority: 14 days paid vacation earned >4.5 years seniority: 16 days paid vacation earned >5.5 years seniority: 18 days paid vacation earned >6.5 years seniority: 20 days paid vacation earned

Employees may accumulate up to two years' unused paid vacation.

Thehealth care system in Japanprovideshealthcareservices including screening examinations,prenatal careandinfectious diseasecontrol, with the patients accepting responsibility for 30% of the cost and the government the remaining 70%. Payment for personal medical services is offered by auniversal health careinsurance system that provides relative equality of access with fees set by a government committee. All residents ofJapanare required by the law to have health insurance coverage. People without insurance from employers can participate in a nationalhealth insuranceprogram administered by local governments. Patients are free to select physicians or facilities of their choice and cannot be denied coverage. Hospitals, by law, must be run as nonprofit and be managed by physicians. For-profit corporations are not allowed to own or operate hospitals. Also, clinics must be owned and operated by physicians.

Social Insurance consists of: >Health Insurance >Social Pension >Nursing Insurance (added for people between 40 to 65 years old) >Children Upbringing Half of the Social Insurance tax is deducted from employees' salaries and the other half is paid by the company.



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The exception is the Children Upbringing tax which is paid only by the company. Social insurance tax is paid the following month.

Health Insurance tax calculation on salary Health Insurance is calculated by multiplying the standard monthly remuneration by the Social Insurance rate which is currently 9.90 % in the Tokyo area. This varies slightly depending on the region and the rate and is generally updated every 6 months. Heath Insurance = Standard Monthly Salary ? Health Insurance rate The standard monthly salary is defined by calculating the average salary for the last 3 months and looking in a salary table where the average salary is. For example, an employee whose average salary for the last 3 months was 305,000 JPY, will be in the salary level 290,000 JPY to 310,000 JPY and its standard salary will be 300,000 JPY. There is a cap to the amount of health Insurance tax that is paid at 1,355,000 JPY as of April 2018. For average salaries of 1,355,000 JPY and above the standard salary is 1,390,000 JPY.

Nursing Insurance Nursing Insurance provides benefits like assistance at home for people aged 65 years and over. Employees aged 40 to 64, have to pay an additional Nursing insurance tax. Current rate for Nursing insurance is 1.57% (nationwide uniform rate) as of April 2018. This is calculated in the same manner as the Health Insurance.

Social Pension Social Pension is provided to people aged 65 Years and over. Calculation of the Pension to be paid out is complex. Social Pension tax calculation The calculation method of Social Pension tax is similar to Health Insurance. Social Pension amount = Standard Monthly Salary ? Pension rate Current pension rate is 18.30% as ofSeptember 2017. For Social Pension, the cap is for monthly salary of 635,000 JPY or more.



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