Practical answers to common questions about payroll, social insurance and HR administration for foreign companies operating in Japan.
We have supported international companies in Japan for more than 15 years. This FAQ provides practical answers to questions we commonly receive from overseas HR, finance and payroll teams.
Payroll & HR Support in Japan
Can You Support Payroll in English in Japan？
English-language payroll support and practical explanations of Japan’s payroll and social insurance systems.
What Is Included in Payroll Outsourcing Services in Japan?
An overview of payroll outsourcing and the related services that foreign companies may need in Japan.
Can You Handle Both Payroll and Social Insurance in Japan?
Why payroll and social insurance are closely connected in Japan and how they can be managed together.
How Long Does It Take to Set Up Payroll in Japan?
Typical implementation timelines, including fast setup for small companies and parallel payroll runs when changing providers.
Can You Support a Small Company with Only a Few Employees in Japan?
Payroll and social insurance support designed with small Japan operations in mind.
Payroll Basics in Japan
How Does Payroll Work in Japan?
Payroll in Japan generally involves calculating an employee’s gross salary, deducting social insurance contributions, taxes and other applicable amounts, and determining the final net salary. While the basic structure is straightforward, some of the rules and timing can be unfamiliar to overseas HR and payroll teams.
What Deductions Are Made from Salary in Japan?
In Japan, the main deductions from an employee’s salary include social insurance contributions, employment insurance, income tax and resident tax. However, not every employee has the same deductions, and the amounts may vary depending on factors such as age, dependents, previous-year income and social insurance status.
When Is Salary Usually Paid in Japan?
Japan has specific rules regarding salary payment frequency and timing. This article explains common monthly payroll schedules, payment dates, and important considerations for overseas HR teams.
How Is Overtime Pay Calculated in Japan?
Overtime pay in Japan is subject to statutory premium rates that vary depending on the type and timing of work. Learn how overtime, late-night work, and statutory holiday work are treated in Japanese payroll.
How Are Bonuses Handled in Japanese Payroll?
Bonuses in Japan are generally subject to income tax and social insurance contributions, but their calculation and reporting differ from regular monthly salary. This article explains the key payroll considerations.
How Is Commuting Allowance Treated in Japan?
Commuting allowances are widely provided in Japan. Although they are generally exempt from income tax within certain limits, they are normally included in social insurance calculations. Learn how these allowances are calculated and paid.