Blog

Employer of record in Japan: hire outstanding professionals in East Asia

Read

Image accompanying Serviap Global article on employer of record in Japan Unsplash pexels-belle-co-402028
0
(0)

An employer of record in Japan will hire professionals on your behalf, taking care of their payroll and administration as part of the service, allowing you to quickly onboard outstanding talent without needing to set up a local entity. 

That means you can have international team members reporting to you in little more than the time it takes to find the right people for the roles you need — which your employer of record in Japan will be able to help you with.

SEE ALSO:  Call center outsourcing: 5 great destinations to consider 

You employer of record in Japan will also guarantee full compliance with all local regulations, while assuming most liability related to being an employer. So you don’t need to worry about dealing with unfamiliar regulations or any unexpected legal complications arising.

Contact us if you want to know more about hiring via an employer of record in Japan. 

Japan: country overview 

Known as the “Land of the Rising Sun”, Japan has been among the top five largest economies in the world by GDP for over 50 years, having experienced a period of rapid growth and industrialization that started in the 1940s and helped the country emerge as a leader in tech innovation, as well as automotive and electronics manufacturing. 

With a population exceeding 125 million people, the yen (JPY) is the official currency, while Japanese is the nation’s official language, which is known for using three distinct alphabets and is notoriously difficult to master for native speakers of most European languages.

While capital city Tokyo is the country’s most significant commercial hub, Japan is home to numerous other large economically and culturally important areas and cities. A prime example is the southern Kansai region, where the cities of Osaka, Kobe and Nara are located in close proximity to ancient capital Kyoto.

An employer of record in Japan hires professionals who report to you.

Nagoya is another crucial industrial and manufacturing hub also located on the largest island of Honshu, along with Toyko and Osaka. On the country’s southernmost island of Kyushu, the city of Fukuoka is home to the Japan’s second-largest port after Tokyo. Meanwhile, on the northern island of Hokkaido, regional capital Sapporo is a cultural and economic center that is particularly popular with winter sports tourists.

Like all highly developed nations, Japan’s economy is dominated by services — generating around 70% of GDP and employing the same proportion of the workforce — however it has a significant agriculture sector and prominent industrial sector.

Exports are dominated by manufactured goods, including automobiles, computers and other consumer electronics, and semiconductors. Petrochemicals, pharmaceuticals, textiles, processed foods, copper, iron and steel are also important exports.

Being a highly developed country with a massive services sector and outstanding education system, Japan produces a large number of highly-skilled professionals. The country’s professional culture is famed for its emphasis on dedication, high standards and respect for seniority.

While the Japanese Labour Standards Act establishes a regular work schedule of 40 hours weekly, an additional flex-time system is common in many companies. According to OECD data, the employment rate of people aged 15 to 64 in Japan is roughly 10% higher than the global average.  

The country’s enormous tech and innovation economy is supported by large numbers of graduates in subjectes related to science, technology, engineering and mathematics (STEM). That is set to increase further, with the government announcing in 2022 the designation of $300 billion yen (approximately US $2 billion) in funding to promote more study of STEM subjects. So the supply of tech talent is set to grow further in the future.

Hiring via an employer of record in Japan 

Hiring team members through an employer of record in Japan offers a range of advantages, with one of the most notable being that you won’t need to establish a legal entity in the country, making it a more agile process. Effectively, you can have people in place in the time it takes to find the right candidates for the roles you need — usually a matter of weeks and sometimes only taking days.

Hiring via an employer of record in Japan is
An EOR hires international professionals for you.

To that end, your employer of record in Japan will have an established recruitment network and a track record of identifying and hiring outstanding talent for their clients. That means you can expect the search to be completed in the shortest time possible.

Another major advantage that an employer of record in Japan offers is compliance with local regulations, while in the event of a non-compliance issue arising, it will be the provider that assumed most or all legal responsibility. That means you can operate safe in the knowledge that no unexepected financial penalties or legal issues will arise.

As part of a standard EOR services package, your employer of record will oversee the payroll of all people employed on your behalf, while also guaranteeing that all statutory responsibilities related to the like of paid time off and other types of leave are met.

An employer of record in Japan can also support with supplementary services, such as assistance with securing a visa for anyone who will be relocating to the country on behalf of the hiring company. Meanwhile, should you later decide to establish your own entity and begin employing people directly, your EOR will often be able to assist with ongoing recruitment services.

Keep in mind that, should you be seeking to hire professionals in Japan as part of an international expansion strategy that will later include other countries, you may wish to seek out a provider with a presence in multiple countries, so they can assist you elsewhere in the future, too.

Regulations an EOR in Japan will handle 

Your employer of record in Japan will ensure compliance with a wide range of local regulations, including: 

Employment contracts: official contracts can be either fixed term or for an indefinite period. They can be signed by both employer and employee in any language, but most employers use the Japanese language. 

Working hours: a full-time work schedule in Japan is set out at 40 hours per week and 8 hours per day.  

Minimum salary: As of 2023, the minimum wage in Japan was set at 1002 JPY per hour (approximately US $6.94), for a full-time monthly salary of 160,320 JPY (approximately US $1,108). 

Vacations and public holidays: Employees receive a mandatory 10-20 days annual leave per year, based on length of service, while there are 16 official public holidays. 

Health insurance: Mandatory. The employer payroll tax includes a 4.935% contribution for health insurance, while employee taxes make up for an additional 4.905%.  

Medical leave: sick leave is non-mandatory in Japan.

Taxes: The standard VAT rate in Japan is 10%. A few goods and services are levied a VAT of 8%. 

Alternatives to hiring via an employer of record in Japan 

The most most common alternative to hiring through an employer of record in Japan is to establish a legal entity and directly employ professionals. That can be the best choice for anyone who is intending to establish a long-term presence in the country, but requires a signicantly great initial outlay, as the entity is established and an staff needed to support the roles being hired are also onboarded.

It also means assuming liability for compliance with local regulations and will still likely require you to partner with a recruitment provider to find strong candidates for the roles you wish to fill.

Another option beyond hiring via an employer of record in Japan is recruiting international independent contractors. These freelancers work independently and, although they may charge a premium for their services, they work on a project-basis, giving them incentive to be efficient, they provide their own tools and equipment, and they are only entitled to limited benefits. 

Be aware that many countries have intensified efforts to avoid the misclassification of full-time employees as contractors, with misclassification sometimes coming with hefty penalties. So if you are considering hiring contractors, it is worth revising your level of misclassification risk based on the conditions under which they will work. 

Serviap Global offers global hiring solutions 

At Serviap Global, we assist companies with global hiring solutions in over 100 countries worldwide, so if you are looking to work with an employer of record in Japan, we can help you. 

Our portfolio of services includes international PEO / EOR services, contractor hiring, and global talent acquisition to help identify candidates to hire directly. 

Contact us to learn more about how we can assist you.  

Serviap Global offers global hiring solutions

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

As you found this post useful...

Follow us on social media!

We are sorry that this post was not useful for you!

Let us improve this post!

Tell us how we can improve this post?

Articles

Stay informed on the latest topics in the world of global expansion.

Global Leadership Strategies for International Expansion

Webinar

0 (0) Scaling internationally isn’t just about entering new markets-it’s about transforming how you lead. The way you communicate, motivate, and build trust can determine...

Read Blog Post

What Employers Should Know: June 2025 Payroll Deadlines in LATAM

Global Labor Updates

5 (1) For companies managing payroll across Latin America, June marks an important month with multiple legal deadlines. From mid-year bonuses to profit-sharing obligations, it’s...

Read Blog Post

How do Tariffs Affect the Global Economy: Consequences For International Teams

Global EOR

5 Read

Tariffs, once used for protecting local industries, are now powerful levers that influence expansion.

Read Blog Post

What is Neurodiversity in The Workplace And How to Support it

Talent Acquisition

5 Read

Fostering a truly inclusive workplace means going beyond compliance and actively celebrating neurodiversity in the workplace.

Read Blog Post

PEO vs EOR Services: 2 Options to Choose

Global EOR, International PEO

5 Read

Understanding the key differences between PEO vs EOR services is crucial when choosing the right solution for your business.

Read Blog Post

New Minimum Wage in El Salvador: What it Means For Global Companies

News El Salvador

4 Read

The new minimum wage in El Salvador became effective on June 1st, 2025, and requires a varying increase across different sectors.

Read Blog Post

Serviap Global Celebrates 15 Years

Featured, News

5 (2) In 2025, Serviap Global celebrates 15 years of history, an achievement that mirrors the rapid transformation of the employer of record (EOR) industry...

Read Blog Post

How to Pay Contractors Internationally: a Quick Guide

Independent contractors, Talent Acquisition

0 (0) Hiring international contractors can help you grow your business, reduce costs, and access specialized skills, but navigating how to pay contractors across borders...

Read Blog Post

How Can a US Company Hire a Foreign Employee?: 3 Useful Options

Recruitment, Recruitment process outsourcing (RPO)

0 (0) Even with recent tariffs and economic uncertainties, many American businesses are looking beyond borders to tap into international talent. But how can a...

Read Blog Post

Working Hours in Mexico: Country Plans 8-Hours Reduction by 2030

News Mexico

0 (0) Recent years in Mexico have been marked by recurrent discussions in labor reform, including the increase of minimum wage and the fight against...

Read Blog Post

4 Global Expansion Tips With Aaron McDaniel

Global EOR, Remote working

Expanding globally in 2025? The goal is not just about targeting the biggest markets. Read and discover global expansion tips to grow with confidence.

Read Blog Post

Serviap Global Wins at the 2025 Excellence in Customer Service Awards

Awards

The Serviap Global team has been recognized in the Exceptional Customer Experience category.

Read Blog Post

Live Webinar: What You Must Know About Global Expansion in 2025, with Aaron McDaniel

Featured

Learn insightful tips for global expansion expansion in our live webinar, featuring Aaron McDaniel.

Read Blog Post

Serviap Global is a Finalist at the 2025 TIARA Talent Solutions Awards US

Awards

Serviap Global becomes a finalist in Client Service at the 2025 TIARA Talent Solutions Awards US.

Read Blog Post

How to Use AI in Hiring International Workers

Recruitment, Recruitment process outsourcing (RPO), Talent Acquisition

How to use AI in hiring? Discover the history, benefits, and challenges of AI assistance in global talent acquisition.

Read Blog Post

How U.S. Tariffs Benefit Canada and Mexico: A Strategic Advantage in Global Trade

News

5 (1) US tariffs on other countries strengthen the position of Mexico and Canada as key partners for companies looking to expand, hire talent, and...

Read Blog Post

Borderless Talks Ep. 6: Women in Remote Work And The Evolution of The EOR Industry

Featured, Global EOR, Remote working

Episode 6 of Borderless Talks invites Brend Limón to discuss the evolution of global collaboration from the perspective of women in remote work.

Read Blog Post

Serviap Global is a Finalist at the 2025 Latin America Inspiring Workplaces Awards

Awards, Featured

Serviap Global is nomitated as a finalist among 8 other global companies at the IW Awards 2025.

Read Blog Post

How to Manage International Teams: 5 Tips for Leaders

Global EOR, Remote working

Efficient international teams take hard work and ongoing efforts in communication and culture. Here are 5 considerations to improve remote teamwork.

Read Blog Post

2 Options for Hiring Remote Foreign Employees Without a Local Entity

Global EOR, Independent contractors

The complexities of hiring remote foreign employees can be simplified with these two options: EOR collaboration and hiring independent contractors.

Read Blog Post

Infographics: Can we Overcome The Global Talent Shortage in 2025?

Recruitment, Talent Acquisition

Discover some key tips to help you beat the global talent shortage and getting ahead.

Read Blog Post

Borderless Talks Ep. 5: Advantages of Chinese companies in Latin America

Featured

Listen to the fifth episode of Borderless Talks with Serviap Global's Sales Executive from China, Sally Chen.

Read Blog Post

6 Important Documents to Hire Employees Abroad

Recruitment, Talent Acquisition, Visas and Immigration

Get to know some of the important documents and steps to hire employees abroad for global companies.

Read Blog Post

Global Hiring Trends in 2025: Which Industries Are Leading International Expansion?

Global EOR, International PEO

In 2025, many sectors will be at the forefront of international expansion and global hiring trends, from technology, to manufacturing, and so on.

Read Blog Post

Infographic: Working Hours in Latin America by Country

Infographics, International PEO

The maximum working hours in Latin America vary from country to country. Getting an overview of their work practices is essential to enter this region's...

Read Blog Post

Hiring In Colombia: 10 Key Factors To Know Beforehand

News Colombia, Talent Acquisition

Discover important aspects of the Colombian market based on the World Bank's Business Ready 2024 ranking.

Read Blog Post

How Does EOR Work?: Your 6-Steps Easy Guide

Global EOR, International PEO

An Employer of Record helps you enter new markets in a matter of weeks or even days. But do you know how does EOR work?

Read Blog Post

New “Unidad de Medida y Actualización” in Mexico: What it Means for Employers in 2025

Global EOR, News Mexico, Payroll outsourcing

The "Unidad de Medida y Actualización" index was increased by 4.21% in 2025 and reflects in the payment increase of fines and other obligations.

Read Blog Post

Borderless Talks Ep. 4: Top Global Expansion Mistakes to Avoid in 2025

Featured, Global EOR, Podcast

Listen to the fourth episode of Borderless Talks with Global Expansion Expert, Klaus Wehage.

Read Blog Post

Infographics: International Maternity Leave Standards

Global EOR

Browse our maps to discover the main differences in guidelines for international maternity leave rights.

Read Blog Post