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Benefits Your Japanese Employees Will Expect

Statutory Social / Labor Insurance (statutory)

Your employees in Japan will expect you to offer health insurance, pension, unemployment insurance and workers’ compensation insurance. Nursing care insurance is also required for employees over the age of 40.

Paid Leave (statutory)

Japan based employees will be granted additional days of paid leave to be added to their annual balance as per the following table. The leave will be effective for two years from the date awarded. This is the statutory minimum, however the company can grant more vacation if it chooses which can be a differentiator in the market when recruiting.

Commuting Allowance (non-statutory)

Although not required by law, most Japanese companies will provide commuting allowance to employees to cover the expense of commuting to and from the office. The expense should be equal to the most economic route between their home and the workplace.

Private Pension (non-statutory)

Many employees expect this benefit from large companies in Japan. Because new companies are not able to offer this benefit in Japan (because of low headcount), except for a few specific programs, foreign subsidiaries usually pay more salary to compensate. Ask us directly for any updated information on the subject.

Other Supplemental Benefits (non-statutory)

Most Japanese talent will not expect anything more than the above. Typically when recruiting, an upgraded title a higher salary, and more responsibility are the most important considerations for Japanese talent. Although extras like housing allowance, car allowance, or life insurance can differentiate when recruiting, Japanese employees do not typically focus on these kinds of benefits when making a decision to move jobs.

Key Takeaways

The benefits Japanese talent expect include statutory and non-statutory benefits. weConnect can help you learn the ins and outs of these benefits, and how to incorporate them into your employment and HR documentation.

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