Payroll for foreign companies in Japan

The purpose of this website is to be a resource about payroll system and benefits for foreign companies in Japan.

It is sponsored by JMC K.K. who has created the website to serve the needs of its clients and prospects who wants to better understand  the payroll system and benefits situation in Japan. JMC K.K. is a leading provider of management consulting and business services in Japan such as payroll, accounting, cash management, recruiting and Information technology.

Payroll and Benefits system in Japan

The main specifics of Japanese payroll  system are:

–          There are 2 main payroll taxes Social Insurance and Labor Insurance

–          Social Insurance provides to employees a Social Insurance card that allows them to visit any medical facilities and pay only 30% of the standard costs. It is government mandated universal coverage for employees and Japanese employees are usually satisfied with it and do not require additional health care benefits

–          Employee National tax liability is calculated by the company and deducted monthly from the salary

–          Employee Residential tax liability (local tax or state tax is calculated by the ward office of the residence of the employee). Employee can ask company to have it deducted from salary. This is the common case.

–          Employees are usually paid on the 25th of the month in Japan but another can be fixed freely by the company.

–          Employees usually get paid their commutation costs from home to the company. However this is not an obligation.

For more details please consult our Japanese payroll system page in our Japan payroll website

This information is given for information purpose only . Companies should consult with a licensed social insurance consultant before making any decision