In Japan, most EOR arrangements are worker dispatch under the Worker Dispatching Act: the provider needs a licence, and the same worker can generally be placed with your company for no more than 3 years, unless they are on an open-ended contract with the provider.
The best EOR for Japan holds a dispatch licence through its own entity, explains how it applies the 3-year limits, and is realistic about dismissal, which Japanese law makes difficult.
- 1
A worker dispatch licence
Ask for the licence number and which entity holds it. Using an unlicensed provider can make your company the deemed employer.
- 2
Open-ended contracts and the 3-year limits
Ask whether your hire will be on an open-ended contract with the provider and how it tracks the workplace and individual 3-year limits.
- 3
Social insurance and bonuses
Check which health insurance scheme applies, how bonuses and commuting allowances are handled, and that every insurance line is itemised.
- 4
Exits and transfers
Agree how performance issues and exits are handled, and the cost of transferring the employee to your own KK.
Shortlist
EOR providers to consider in Japan
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Remote
From US$599 / employee / month
States an owned-entity model and publishes a Japan country explorer; ask for its dispatch licence details.
Delivery model in Japan: Owned entities (provider's stated model)
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Deel
From US$599 / employee / month
Publishes a Japan employment page; confirm the entity and dispatch licence holder.
Delivery model in Japan: Confirm entity and dispatch licence
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Pebl (formerly Velocity Global)
From US$399 / employee / month
Offers entity-setup advisory, useful when planning a move to a KK within three years.
Delivery model in Japan: Confirm entity and dispatch licence
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Playroll
From US$399 / employee / month
Lower published starting price (US$399); ask for its Japan-specific rate.
Delivery model in Japan: Confirm entity and dispatch licence
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Globalization Partners (G-P)
From US$599 / employee / month
Enterprise focus; publishes a Japan country guide.
Delivery model in Japan: Confirm entity and dispatch licence
For a JPยฅ8,000,000 salary, mandatory employer costs add about JPยฅ1,236,980 a year. With an EOR fee of JPยฅ94,000 a month, the total is roughly JPยฅ10,364,980 a year (1.30ร salary). Every employer contribution is broken down in cost to hire an employee in Japan, and you can run your own numbers in the Japan cost estimator.
Before you request quotes, read the full Employer of Record in Japan guide for contribution rates, employment rules and official sources.
What is the best EOR for Japan?
How much does an EOR cost in Japan?
Is there a time limit on using an EOR in Japan?
Related research
- EOR in Japan: full guideCosts, rules, providers and official sources.
- Cost to hire in JapanEmployer costs at four salary levels, explained line by line.
- Deel vs RemoteThe two best-known EOR platforms, with similar headline prices. The real differences are in how they employ people locally and how much of the wider HR stack you want from one vendor.
- Deel vs PeblA broad workforce platform against one of the original EOR providers, now rebranded as Pebl. Here's how their published positioning compares.
- How EOR pricing worksFees, deposits and hidden costs to check in every quote.