Hiring cost

What a hire really costs in Japan

Enter the offer and a prefecture to see the employer’s social insurance on top, the recruitment fee, and the total for the year. Rates as of October 2026.

Rates as of October 2026

Bonus is assumed to be paid in two instalments. Leave at 0 if there is none.

Counts in the insurance base; tax-free up to ¥150,000 a month.

Total cost per year—
Per month—
Multiplier on the offer—
First-year total (with any fee and one-off costs)—

SalaryCommutingEmployer social insuranceFee and one-off costs

What the candidate takes home (for reference)

Assumes an employee in the national health scheme for small and mid-sized employers (協会けんぽ), no dependants, bonus paid twice a year. Employer contributions are the employer halves of health, care, child-support and pension premiums, the employer rate of employment insurance, the child-rearing contribution and workers’ accident insurance at the general-business rate. Not included: a company health society’s own rates, industry accident rates, retirement allowance, benefits, office space or equipment. Rates from Kyokai Kenpo, the Japan Pension Service, MHLW, the National Tax Agency and MIC.

Looking at it from the candidate’s side? Use the take-home pay calculator.

Is the offer at market? Check average pay by occupation and this year’s pay rises, or what 3,789 listed companies pay. For how hard the hire itself will be, How Hard Is This HR Hire? and retained search at Makana Partners.

Questions

What does a ¥12,000,000 hire cost the employer in Japan?

With the rates as of October 2026, in Tokyo, aged 40 to 64, with ¥2,000,000 of that as bonus: employer social insurance is ¥1,769,640 a year, so the cost of employment is ¥13,769,640, 1.15 times the offer. Add a 35% recruitment fee (¥4,200,000) and the first year totals ¥17,969,640.

What social insurance does the employer pay in Japan?

The employer pays half of health insurance, long-term care insurance, the child-support levy and the employees’ pension, matching the employee’s half; a higher share of employment insurance than the employee; and two levies the employee does not pay at all, the child-rearing contribution and workers’ accident insurance. Together they come to roughly 15 to 16% of salary, falling as a share for high earners because premiums are capped at a standard monthly remuneration.

How much is a recruitment agency fee in Japan?

Contingent fees are typically 30 to 35% of first-year compensation, payable when the person starts. Retained search is paid in instalments from engagement. Tick “Hired through a recruitment agency” to add a fee and set the percentage; a direct hire carries none.

Are retirement allowance and benefits included?

No. Retirement allowance schemes, defined-contribution pension matches, housing allowances, health checks, training and office or equipment costs vary by employer. Add them under one-off costs or estimate them separately.

Why does the commuting allowance change the cost?

Commuting allowance is tax-free up to ¥150,000 a month, but it counts as remuneration for social insurance. It can lift the standard monthly remuneration into a higher grade, raising both halves of the premium.

When do the rates change?

Kyokai Kenpo health rates change each March, employment-insurance and accident-insurance rates each April, and the pension’s upper remuneration grades step up from September 2027. This page uses the rates as of October 2026 and is rechecked every April.

Rates and their sources are recorded with the data (Kyokai Kenpo 令和8年度, NTA and MIC tables for 2026).