Country fileJPJPYVerified 2026-09-20
JP
Employer of Record in Japan: what one employee really costs
Japan, Asia. One software engineer at $60,000 gross per year, priced through 12 providers with a published fee, on the ECB reference rates of 18 Sept 2026. Change the salary and headcount below.
- Employer on-cost
- +14.0%
- statutory charges on top of gross
- All-in per month
- $5,900 – $6,400
- salary + charges + published fee, cheapest to dearest listed provider
Hiring one software engineer in Japan at $60,000 gross a year costs about $701 a month in statutory employer charges (+14.0%), plus an EOR fee of $199 to $699 per month depending on the provider: $5,900 to $6,400 all-in, before deposits, FX margins and add-ons. Prices checked 2–24 Sept 2026.
Disclosure Some provider links on this page are affiliate links: if you become a customer after clicking, the provider may pay us a referral fee. It never changes the price you pay, and it never changes the numbers on this page, which come from official sources and are dated. How we are paid
Cost engine · preset to Japan
Price your own hire, line by line.
employee inatgross / year
≈ JPY 9,473,298 gross / year · JPY at ECB reference rate, 18 Sept 2026
| Per employee | Rate | Per month |
|---|---|---|
| Gross salary | $5,000 | |
| Employees' Pension Insurance (kosei nenkin) capped | 9.15% | $377 |
| Health insurance (kenko hoken), Tokyo rate | 4.93% | $246 |
| Employment insurance (koyo hoken), general business | 0.85% | $43 |
| Child allowance contribution (kodomo kosodate kyoshutsukin) capped | 0.36% | $15 |
| Workers' accident compensation insurance (rosai hoken), other businesses | 0.30% | $15 |
| Child support levy (kodomo kosodate shienkin), new in 2026 | 0.12% | $6 |
| Employer on-cost | +14.0% | $701 |
| Cost of employment, before EOR fee | $5,701 |
RemoFirstLowest total
$5,900/ month · 1 employee
- Fee / mo
- from $199
- Per year
- $70,800
- Fee share
- 3.4%
Checked 2 Sept 2026
Get a RemoFirst quotePapaya Global
$6,200/ month · 1 employee
- Fee / mo
- from $499
- Per year
- $74,400
- Fee share
- 8.0%
Checked 2 Sept 2026
Get a Papaya quoteDeel
$6,300/ month · 1 employee
- Fee / mo
- from $599
- Per year
- $75,600
- Fee share
- 9.5%
Checked 2 Sept 2026
Get a Deel quoteEmployer charges from official sources; provider fees are list prices on the dates shown; deposits, FX margins and add-ons are not included. Not legal or tax advice. Methodology
14 providers, one scenario, all-in totals.
| Provider | EOR fee / employee / mo | All-in / mo, 1 hire | Deposit | Countries | Checked | Quote |
|---|---|---|---|---|---|---|
| RemoFirst EOR in 185+ countries from $199 per employee per month, no annual contract. | from $199 | $5,900 | Not stated on the pricing page | 185+ | 2 Sept 2026 | Get a quote from RemoFirst· $5,900/mo |
| Rivermate EOR in 180+ countries from $319 to $639 per employee per month. | from $319 | $6,020 | Not stated on the pricing page | 180+ | 2 Sept 2026 | Get a quote from Rivermate· $6,020/mo |
| Pebl Velocity Global, renamed Pebl in 2026. Prints $399 per employee per month. | from $399 | $6,100 | Not stated on the pricing page | 185+ | 22 Sept 2026 | Get a quote from Pebl· $6,100/mo |
| Playroll EOR in 180+ countries from $399 per employee per month; deposit of one month's salary. | from $399 | $6,100 | Fully refundable security deposit equivalent to one month's salary when onboarding an employee (pricing page). | 180+ | 2 Sept 2026 | Get a quote from Playroll· $6,100/mo |
| Multiplier EOR from $459 (annual) or $499 (monthly) per employee, plus mandated add-ons. | from $499 $459 billed annually | $6,200 | Refundable security deposit required per employee by the EOR terms (effective 1 June 2026), sized by Multiplier; not on the pricing page. | 150+ | 24 Sept 2026 | Get a quote from Multiplier· $6,200/mo |
| Papaya Global EOR starting from $499 per employee per month, quote-based, 160+ countries. | from $499 | $6,200 | Not stated for EOR on the pricing page (the contractor block states 'No deposit required'). | 160+ | 2 Sept 2026 | Get a quote from Papaya Global· $6,200/mo |
| Borderless AI EOR at $579 per employee per month, no deposit or pre-funding, 170+ countries. | $579 | $6,280 | No deposit: 'No upfront deposits or pre-funding required' (pricing page). | 170+ | 24 Sept 2026 | Get a quote from Borderless AI· $6,280/mo |
| Atlas HXM EOR from $599 through its own entities, plus an Agent of Record at $199. | from $599 | $6,300 | Not stated on the pricing page | 160+ | 21 Sept 2026 | Get a quote from Atlas HXM· $6,300/mo |
| Deel EOR in 130+ countries, starting at $599 per employee per month. | from $599 | $6,300 | Not stated on the pricing page | 130+ | 2 Sept 2026 | Get a quote from Deel· $6,300/mo |
| G-P EOR in 180+ countries from $599, with no minimum contract length. | from $599 | $6,300 | Not stated on the pricing page | 180+ | 24 Sept 2026 | Get a quote from G-P· $6,300/mo |
| Oyster EOR in 120+ countries at USD 699 per employee per month; refundable deposit. | $699 | $6,400 | Refundable deposit required for EOR team members 'to initiate the engagement and to ensure on-time payments' (pricing FAQ). | 120+ | 24 Sept 2026 | Get a quote from Oyster· $6,400/mo |
| Remote EOR in 90+ countries at $699 per employee per month, no deposit. | $699 | $6,400 | No deposit: 'We collect reserve payments in rare, high risk circumstances' (pricing FAQ). | 90+ | 2 Sept 2026 | Get a quote from Remote· $6,400/mo |
| Rippling EOR bundled with the Rippling platform; custom quote only. | Quote only | — | Not stated on the pricing page | — | 24 Sept 2026 | Get a quote from Rippling |
| Safeguard Global EOR sold alongside entity setup and payroll; no price published. | Quote only | — | Not stated | 187+ | 21 Sept 2026 | Get a quote from Safeguard Global |
Same salary and statutory charges in every row; only the fee segment changes.
What Japan adds on top of the salary, and where each rate comes from.
Rates apply to the base named in each line; capped lines stop growing above the ceiling.
| Line | Employer rate | Base & ceiling | Source |
|---|---|---|---|
| Employees' Pension Insurance (kosei nenkin)All employees at an applicable workplace, under 70 | 9.15% | Gross salary , capped at JPY 7,800,000 / yr, floor JPY 1,056,000 / yr Total rate 18.300%, split in half between employer and employee, unchanged since September 2017. The base is the standard monthly remuneration, which tops out at grade 32 = JPY 650,000 a month (JPY 7.8 million a year): the official Tokyo table says that for pension purposes grade 35(32) is read as 'JPY 635,000 and above'. That ceiling is what makes Japan comparatively cheap for senior hires. Bonuses are charged separately up to JPY 1,500,000 per payment. | Japan Health Insurance Association (Kyokai Kenpo)2026-09-20 |
| Health insurance (kenko hoken), Tokyo rateEmployees enrolled in Kyokai Kenpo; the rate is set per prefecture | 4.93% | Gross salary , capped at JPY 16,680,000 / yr, floor JPY 696,000 / yr Total 9.85% in Tokyo, split in half, in force from the March 2026 payroll month. This rate is prefectural, not national: an employee registered in another prefecture carries a different one, so a Japan-wide 'employer rate' does not exist. The standard-remuneration ceiling is higher than the pension one, grade 50 = JPY 1,390,000 a month, and annual bonuses are charged up to JPY 5,730,000. | Japan Health Insurance Association (Kyokai Kenpo)2026-09-20 |
| Employment insurance (koyo hoken), general businessGeneral business; agriculture, forestry, fisheries, sake brewing and construction carry higher rates | 0.85% | Gross salary Employer share 8.5/1,000 for fiscal 2026 (1 April 2026 to 31 March 2027), made up of 5/1,000 for unemployment and parental-leave benefits plus 3.5/1,000 for the two employment services. Down from 9/1,000 in fiscal 2025. Uncapped, so unlike pension and health it keeps growing with salary. The employee pays a further 5/1,000. | Ministry of Health, Labour and Welfare2026-09-20 |
| Child allowance contribution (kodomo kosodate kyoshutsukin)Every employer, whether or not the employee has children | 0.36% | Gross salary , capped at JPY 7,800,000 / yr, floor JPY 1,056,000 / yr Paid entirely by the employer: the official table states plainly that the insured person bears none of it. Charged on the pension base, so it stops at the same JPY 650,000 monthly ceiling. Rate unchanged since April 2020. | Japan Health Insurance Association (Kyokai Kenpo)2026-09-20 |
| Workers' accident compensation insurance (rosai hoken), other businessesRate class 94, 'other businesses' - the class an office or software role normally falls into | 0.30% | Gross salary Borne entirely by the employer, with no employee share, and uncapped. The rate is set by industry class and runs from 2.5/1,000 to 88/1,000; 3/1,000 is the 'other businesses' class that covers office and information-services work. The class follows the activity the employer declares to the labour bureau, so a provider that has registered a different activity may carry a different rate - worth asking when comparing quotes. | Ministry of Health, Labour and Welfare2026-09-20 |
| Child support levy (kodomo kosodate shienkin), new in 2026All employees enrolled in health insurance | 0.12% | Gross salary , capped at JPY 16,680,000 / yr, floor JPY 696,000 / yr Brand new line: first charged on the April 2026 payroll month, paid in May 2026. Total 0.23% split in half with the employee, collected alongside health insurance and on the same base. Do not confuse it with the older child allowance contribution above, which is 0.36% and entirely on the employer. Because 2026 is its first year there is no track record on how the rate will move, so it is re-checked at each monthly data refresh. | Japan Health Insurance Association (Kyokai Kenpo)2026-09-20 |
| Nursing care insurance (kaigo hoken), employees aged 40 to 64 not in total | — | Carried at zero because it depends on the employee's age, not on the job. The official Tokyo table states that category-2 insured persons are those aged 40 to 64, and that a nursing care rate of 1.62% is added to the 9.85% health rate and the 0.23% child support levy for them. The employer half is therefore a further 0.81% of the health insurance base for an employee in that age band, and nothing at all outside it. A provider quoting one flat Japanese employer rate is quietly assuming an age. | Japan Health Insurance Association (Kyokai Kenpo)2026-09-20 |
| Summer and winter bonus (shoyo) - customary, not statutory not in total | — | Carried at zero because no Japanese statute requires a bonus: the Labour Standards Act only requires that, where a bonus exists, the rules governing it are written into the rules of employment. In practice most Japanese employers pay a summer and a winter bonus worth several months of salary, and a competitive offer usually has to include one. Treat it as a market cost to budget, not a legal charge - and note that bonuses do attract social insurance, capped at JPY 1,500,000 per payment for pension and JPY 5,730,000 a year for health. | Japan Health Insurance Association (Kyokai Kenpo)2026-09-20 |
| Employer on-cost at $60,000 | +14.0% | $8,412 a year, $701 a month |
EOR or your own entity
Fees scale with headcount. An entity does not.
Japan is one of the countries where the employer on-cost argues least against an entity: the statutory charge is around 14% at a senior salary and falls in percentage terms as pay rises, because pension and health both stop at a ceiling. What argues for an EOR is time and standing obligations. Playroll's own comparison puts an EOR hire at 10 to 15 business days against 8 to 12 weeks after entity registration for a Godo Kaisha, and a Japanese entity has to maintain rules of employment, a labour-standards filing and its own social insurance registrations from the first employee. For one or two hires that overhead rarely pays for itself; a local team of five or more usually reverses the answer.
Fees grow with every hire; the charges line is owed under an entity too.
| Headcount | RemoFirst fees / yr | Borderless AI fees / yr | Statutory charges / yr |
|---|---|---|---|
| 1 | $2,388 | $6,948 | $8,412 |
| 3 | $7,164 | $20,844 | $25,236 |
| 5 | $11,940 | $34,740 | $42,061 |
| 10 | $23,880 | $69,480 | $84,121 |
| 20 | $47,760 | $138,960 | $168,243 |
Statutory charges are owed either way; the provider fee is the only line an entity removes, against the cost of incorporating and running local payroll.
Employment terms that move the cost
- Paid leave
- 10 days
- Public holidays
- 16
- 13th month
- Not mandatory
- Probation
- no statutory maximum
- Notice
- Thirty days' notice, or pay in lieu of the shortfall, under article 20 of the Labour Standards Act. Article 21 exempts a worker on trial during the first 14 days of employment from that requirement; the Act sets no maximum length for the trial period itself.
- Reviewed
- 2026-09-20
Get a quote for Japan.
The lowest published total here, next to the two providers searched for most often (the rule). Totals for 1 hire at $60,000. Ask each provider about deposits, FX margins and mandatory add-ons for Japan: those are the lines that move.
Get a RemoFirst quote· $5,900/mo Get a Papaya quote· $6,200/mo Get a Deel quote· $6,300/mo
Disclosure Some provider links are affiliate links; they never change the numbers on this page. Details
Questions people ask before booking a demo
- How much does an employer of record cost in Japan?
- Statutory employer contributions come to about 14% of salary at a US$60,000 hire in Tokyo: 9.15% pension, 4.925% health, 0.85% employment insurance, 0.36% child allowance, 0.3% workers' accident and the new 0.115% child support levy. That is roughly US$700 a month on top of salary. Published EOR fees then run from about $199 to $699 per employee per month, so the all-in cost lands near $5,900 to $6,400 a month depending on the provider.
- Is there a ceiling on Japanese employer social insurance?
- Yes, and it matters. Pension contributions stop at a standard monthly remuneration of JPY 650,000, about JPY 7.8 million a year, and health insurance at JPY 1,390,000 a month. Above those levels only the uncapped lines keep growing, so the employer on-cost falls as a share of salary: roughly 14% at JPY 9 million, and lower still at JPY 15 million. Japan gets cheaper per yen as the hire gets more senior.
- What is the new Japanese child support levy in 2026?
- A new contribution, kodomo kosodate shienkin, charged for the first time on the April 2026 payroll and paid in May 2026. The total rate is 0.23% of the health insurance base, split evenly, so the employer pays 0.115%. It is collected with health insurance and is separate from the older 0.36% child allowance contribution, which the employer pays in full. Budget both.
- Does nursing care insurance apply to my Japanese employee?
- Only between the ages of 40 and 64. For an employee in that band a nursing care rate of 1.62% is added to the health insurance base, so the employer pays a further 0.81%. Outside that age band it is nothing. A provider quoting a single flat employer rate for Japan is assuming an age bracket, so it is worth asking which one.
- Is a bonus or 13th month salary mandatory in Japan?
- No. No statute requires a bonus; the Labour Standards Act only requires that if a bonus exists, its rules are set out in the rules of employment. In practice most Japanese employers pay a summer and a winter bonus, and an offer without one is usually uncompetitive. Budget it as a market cost, and remember bonuses carry social insurance up to JPY 1,500,000 per payment for pension.