Japanese Employer Rates and Thresholds 2026

Japanese employers pay social insurance on the employee's standard monthly remuneration, which is based on pay. Pension stops at ¥650,000 a month and health insurance at ¥1,390,000; employment and accident insurance have no ceiling.

Health insurance rates differ by prefecture and for company health insurance societies; Tokyo's Kyokai Kenpo rate is shown. Long-term care insurance applies only to employees aged 40 to 64.

Employer social insurance for a Tokyo employee under 40, at FY2026 rates (add 0.81% of pay up to the health ceiling for employees aged 40 to 64):

• No more than 40 hours a week and 8 hours a day, excluding breaks. Breaks of at least 45 minutes when working more than 6 hours and 1 hour when working more than 8. At least one day off a week (or four in four weeks).
• Overtime or work on days off requires a written agreement with the majority union or employee representative, filed with the labour office. The normal cap is 45 hours a month and 360 a year; even in special circumstances, under 100 hours a month and 720 a year.
• Premiums of at least 25% for overtime and work on days off (the exact rates are set by Cabinet Order between 25% and 50%), at least 50% for overtime beyond 60 hours a month, and at least 25% for night work between 10pm and 5am.
• 10 days after 6 months' continuous service with at least 80% attendance, rising to 11, 12, 14, 16, 18 and 20 days a year from 6.5 years. For employees with 10 or more days, the employer must make sure at least 5 are taken each year.
• Leave from 6 weeks before childbirth on request (14 weeks for multiple births) and a ban on work for 8 weeks after (6 weeks with a doctor's approval). Childcare leave until the child turns one, extendable to 18 months and then two years in specified cases such as no nursery place.

• When hiring, the employer must make wages, working hours and other conditions explicit, with the main particulars in the form prescribed by MHLW ordinance. If the actual conditions differ, the worker can cancel the contract immediately.
• Employers continuously employing 10 or more workers must draw up rules of employment covering hours, leave, pay, separation and grounds for dismissal, and file them with the labour office.
• When fixed-term contracts with the same employer total more than five years, the worker can apply for an open-ended contract on the same terms, and the employer is deemed to accept.
• A dismissal that lacks objectively reasonable grounds and is not appropriate in general societal terms is an abuse of rights and invalid. The employer must give at least 30 days' notice or 30 days' average wages in lieu (less notice if days are paid).
• A worker dispatch business needs a licence. A client can't use dispatched workers for the same work at a workplace for more than 3 years without extending the period after consultation, and the same worker can't be placed in the same organisational unit for more than 3 years, unless they are on an open-ended contract with the provider.

Changes to these rates and rules, newest first. Every country is covered in our law changes tracker.

• From 1 October 2026: Tokyo minimum wage rises to ¥1,280 an hour. Tokyo's regional minimum wage rose by ¥54 to ¥1,280 an hour on 1 October 2026; the national weighted average is ¥1,177. Other prefectures' increases take effect between October and December 2026.
• From 1 April 2026: Japan's child and childcare support levy starts, and employment insurance falls. From April 2026 a new child and childcare support levy of 0.23% (split equally) is collected with health insurance, and the employment insurance rate for general businesses falls from 14.5/1,000 to 13.5/1,000 (employer share 8.5/1,000).