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Source: Labour Standards Act, Articles 32, 36 and 37, as amended by the Work Style Reform legislation (in force April 2019, April 2020 for smaller employers). Chart: The Hardest Market (hardestmarket.com).
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Employment law
Five of the next 15 employment law changes land on 1 April 2027Every confirmed change to employment, tax, immigration and social insurance rules from December 2026 to October 2028, by the date it takes effect.
Tax and social insurance
Two income walls are gone. The ¥1.3 million cliff remainsThe salary levels at which a part-time worker starts paying tax or social insurance, or stops counting as a dependant, in 2026.
Pay
On an ¥8 million salary in Tokyo, the employee keeps 74%The employer spends ¥9.25 million. The employee keeps ¥5.95 million. Where the difference goes, at October 2026 rates.
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