Things you need to know about employee benefits in Japan


Things you need to know about employee benefits in Japan

Employee benefits became one of the most important aspects to consider when choosing a company to work for in Japan, and many companies invest more in benefit packages to attract and secure top candidates, who tend to be picky about their career.


Top candidates in Japan know that they are expected to work hard for, and stay devoted to the company, in exchange for some degree of job security and benefits they are receiving, which include housing subsidies, good insurance, the use of recreation facilities, bonuses, and pensions. Large companies usually have more employee benefits, and today we listed up some benefits you can get from a Japanese company as an employee.


Annual paid leave

Full-time and contract employees are entitled to have a minimum of 10 days annual paid leave after six months working for the company. The length of the annual paid leave can go up to 20 days per year with more than 6.5 years of service, and it can be carried over to the following year.


Social insurance system


The social insurance system, also called as shakai hoken (社会保険), includes health insurance (kenko hoken, 健康保険), employment insurance (koyou hoken, 雇用保険), and employee’s pension (kousei nenkin, 厚生年金). The premium rates for health insurance and employment insurance vary depending on the insurance institution the company is registered to, and the rate for employee’s pension varies depending on the amount of your income. Your employer will pay half of the total premiums you need to pay.


Commuting expense allowance

Your company will pay the amount of transportation you used to go to the office.


Business expenses allowance

This allowance covers all the expenses you spent for the company’s business, and it includes travel, meals, and lodging expenses.


Paid overtime allowance

This allowance is also called as minashi zangyodai (みなし残業代), and it is the amount of payment for pre-determined overtime, so you will not get any extra overtime allowance unless you exceeded the maximum hours.


Self-improvement / self-development allowance

This allowance covers all the expenses you spent to improve and develop your skills, and it includes books, trainings, and seminars.




Qualification allowance

This allowance is paid to employees who have the qualifications required for the business specified by the company. The amount varies depending on the level of difficulty in obtaining the qualifications. Japanese IT companies offer this allowance to certified engineers, so we recommend obtaining qualifications or certifications related to your skills and career to get this benefit.


Executive allowance

This allowance is paid to employees who are promoted to managerial positions. The amount varies depending on the position, and the higher the position, the higher the amount is.


Housing allowance

This allowance is paid to subsidize part of the monthly rent. The amount varies depending on the company’s rules and where you reside.


Performance bonuses / incentives

This allowance is paid to honor your performance. The amount varies depending on your monthly performance.


Profit sharing

Not many companies use this system, but some property companies share the profit they got from selling properties with the employees.


Device and tools support

Most IT companies support their employees by giving each employee necessary devices and tools, like high-tech computers and premium online tools.


Wi-Fi bill support

Some IT companies offer subsidies for Wi-Fi bills.


Maternity and paternity leave

A pregnant employee can take up to six weeks, or 14 weeks for multiple fetuses, of maternity leave before childbirth, and eight weeks after childbirth. The maternity leave is a mandatory, and employers cannot ask a woman to work within eight weeks after childbirth.


In addition to the maternity leave, an employee, regardless of the gender, who has been employed for at least a year, is entitled to take child care leave for a child aged less than one year. Paternity leave is not a mandatory in Japan, but male employees can take a paternity leave for a full year if they want to.


Compensation during maternity leave and child care leave

During maternity leave, your salary will be covered by the social insurance up to ⅔ of the base salary, but the amount covered by the social insurance will be reduced if your company decides to make a certain amount of payment during this period.


Your salary will also be covered by the labor insurance during child care leave (including paternity leave), and the company may pay a certain amount of payment within this period, but the total amount should not exceed ⅔ of the base salary.


Additional paid leave granted by the company

1. Leave due to death in the family

- Death of a father, mother, spouse, or child: up to five days

- Death of a grandparent, grandchild, sibling, child’s spouse, or spouse’s parent: up to three days

If you, the employee, is the chief mourner who is in charge of arranging the funeral service, an additional two leave days are added.


2. Leave to attend memorial services

For the first year memorial service of a deceased parent, spouse, or child: one day


3. Leave for marriage

When an employee marries: five days


4. Leave for jury service

When an employee needs to appear in a court: the approved number of days


5. Public work leave

When an employee carries out public office duties: the approved number of days