Yes. We can support both payroll processing and the required social and labor insurance procedures for your employees in Japan.
In Japan, payroll and social insurance are closely connected.
Many employee-related changes, such as joining or leaving the company, changes in salary or dependent information, and maternity or childcare leave, may affect both payroll calculations and social insurance procedures.
For this reason, managing payroll and social insurance together can provide significant practical benefits, particularly for foreign companies without their own HR team in Japan.
How Are Payroll and Social Insurance Connected?
When a new employee joins a company in Japan, for example, it is not only necessary to start processing their payroll. Depending on the applicable requirements, procedures may also be required for health insurance, employees’ pension insurance and employment insurance.
Similarly, when an employee leaves the company, the final payroll must be calculated while the necessary procedures for termination of social and labor insurance coverage also need to be completed.
Changes in an employee’s salary can also affect social insurance. If an employee’s remuneration changes significantly and certain conditions are met, a procedure may be required to revise their Standard Monthly Remuneration, which is used as the basis for calculating social insurance contributions.
In this way, payroll information can affect social insurance procedures, while the results of social insurance procedures can in turn affect deductions from payroll.
The Benefits of Managing Both Together
It is possible for payroll and social insurance to be handled by different providers or different teams. However, this requires accurate and timely communication between them.
For foreign companies without an HR team in Japan, coordinating this information from overseas can sometimes create an additional administrative burden.
By managing payroll and social insurance together, employee changes can be reflected more efficiently in both processes, helping to reduce the risk of missing information or timing differences between payroll and the required procedures.
It also gives an overseas HR or finance team a single point of contact for questions relating to both payroll and social insurance in Japan.
Support from a Certified Social Insurance and Labor Consultant
In Japan, social and labor insurance procedures are governed by detailed local rules and require specialized knowledge.
Our office is headed by a Certified Social Insurance and Labor Consultant (Shakai Hoken Romushi), a nationally licensed professional in Japan specializing in labor and social insurance matters.
This enables us to support not only payroll processing, but also the required procedures relating to health insurance, employees’ pension insurance, employment insurance and workers’ compensation insurance.
Our role is not simply to complete the required procedures. We also believe it is important to explain to overseas HR teams why a particular procedure is required and how it may affect payroll, in clear and practical English.
Support for Companies Without an HR Team in Japan
Many small Japan operations are managed by an overseas headquarters without a dedicated HR professional in Japan.
In such cases, outsourcing payroll and social insurance together can make it easier to manage the local administrative requirements associated with employing people in Japan.
We provide payroll, social insurance procedures and related HR support according to the size, structure and needs of each company’s Japan operation.
For further information about the scope of our services, please see our Service Details page, or feel free to contact us.
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