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Labor Laws in Japan

  • Annual Leave: Minimum 11 days
  • Maternity Leave: 14 weeks
  • Public Holidays: 16
  • Workweek: 40 hours per week.

Income Tax in Japan

Income Tax in Japan is progressive ranging from 5% to 45%.

Value Added Tax (VAT) in Japan

Japan has a standard VAT rate of 10%.

Social Security in Japan

In Japan, the social security contributions for employers and employees are structured as follows:

Employee Contributions:

  • Health Insurance: 5.00% of monthly salary up to ¥1,390,000, plus 5.00% of annual bonuses up to ¥5.73 million.
  • Welfare Pension: 9.15% of monthly salary up to ¥650,000, plus 9.15% of annual bonuses up to ¥1.5 million.
  • Unemployment Insurance: 0.60% of monthly salary and bonuses.
  • Total Employee Contributions: 14.75% of monthly salary and bonuses.

Employer Contributions:

  • Health Insurance: 5.00% of employee's monthly salary up to ¥1,390,000, plus 5.00% of annual bonuses up to ¥5.73 million.
  • Welfare Pension: 9.15% of the employee's monthly salary up to ¥650,000, plus 9.15% of annual bonuses up to ¥1.5 million.
  • Unemployment Insurance: 0.60% of the employee's monthly salary and bonuses.
  • Worker's Accident Compensation Insurance: Varies by industry, typically around 1% of payroll.
  • Total Employer Contributions: Approximately 15-16% of employee's salary and bonuses.

Work Visas Japan

The visas available to legally work in Japan are as follows:

Work Visa

A long-term visa is designed for individuals entering Japan for employment, usually requiring an employment permit. Specific criteria must be met based on the job type.

General Visa

Ideal for those planning to stay in Japan for more than 90 days. This visa allows entry and work without an employment permit or specialized skills. Suitable for living with family or short-term business trips.

Highly Skilled Professional Visa

A five-year visa for individuals with in-demand skills and qualifications. Entry requirements vary based on factors like salary, experience, and nationality.

Specified Visa

A long-stay visa for specific activities such as research or study abroad programs. Requires additional documentation from relevant organizations before approval.

Start-up Visa

Designed for entrepreneurs, this visa facilitates setting up a business in Japan. It offers access to various industry sectors, grants, subsidies, asset guarantees, and opportunities.

Intra-company Transferee Visa

For employees transferring from an overseas branch to the Japanese branch of the same company. Ideal for relocating existing employees.

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