Working in Japan

Employment in Japan requires a status of residence that covers the planned activity. The most common for professionals is Engineer/Specialist in Humanities/International Services, which requires a relevant degree or professional experience and a contract with a Japanese employer. Staff sent from a foreign parent use Intra-company Transferee; entrepreneurs and executives use Business Manager, whose requirements were tightened substantially in October 2025.

The points-based Highly Skilled Professional status offers faster permanent residency and other advantages. Further options include the Specified Skilled Worker status for designated sectors, the Working Holiday programme for younger people from partner countries, and the Designated Activities status for digital nomads.

Foreign professionals find positions through international and bilingual recruitment agencies, specialised job boards, professional networks and direct applications. Foreign-affiliated companies (gaishikei) and IT firms are the most open to English speakers; in most Japanese companies, business-level Japanese, often equivalent to JLPT N2 or higher, is expected.

Applications traditionally use a standard form (rirekisho) and a work history (shokumu keirekisho). Japanese companies recruit graduates in a single annual cycle for April starts, while mid-career hiring happens throughout the year.

Employment is governed by the Labour Standards Act and the Labour Contract Act. Regular employees (seishain) usually have indefinite contracts; fixed-term contract staff (keiyaku shain) and agency workers (haken) are common. Dismissal of regular employees is restricted by case law and statute and must be objectively reasonable; employees on indefinite contracts can generally resign with two weeks' notice, though contracts often ask for more.

The work-style reform laws in force since April 2019 (April 2020 for small and medium enterprises) introduced legally binding overtime caps and oblige employers to ensure that employees take at least five days of their paid leave each year. Many companies pay bonuses twice a year, in summer and winter, and commuting costs are commonly reimbursed.

Employees are enrolled in employees' health insurance (kenkō hoken), the employees' pension insurance (kōsei nenkin), employment insurance and workers' accident insurance; from age 40, long-term care insurance is added. Contributions are shared between employer and employee and deducted from salary.

Foreign nationals who leave Japan after contributing to the pension system can claim a lump-sum withdrawal payment for a limited number of years of contributions. Social security agreements with Germany, Switzerland and Austria allow employees posted for a limited period to remain in their home pension system and let contribution periods in both countries be combined for pension entitlements; the scope differs by agreement.

Salaries are subject to national income tax, withheld monthly and settled by the employer in a year-end adjustment, and to a municipal and prefectural resident tax, which is calculated on the previous year's income and therefore starts in the second year of residence. Foreign residents who have lived in Japan for less than five of the past ten years are taxed as non-permanent residents on Japanese-source income and on foreign income remitted to Japan. Double taxation agreements exist with Germany, Austria and Switzerland.

On arrival, mid- to long-term residents receive a residence card and must register their address at the municipal office within 14 days; they then receive an Individual Number (My Number) used for tax and social security.

Long hours, after-work socialising and reluctance to take leave have long characterised Japanese office life. Reforms, labour shortages and the spread of remote work since 2020 have changed practice, especially at large and foreign-affiliated companies, though differences between employers remain large.

Teamwork, punctuality, thorough reporting to superiors (hōrensō) and careful preparation are highly valued. Foreign employees who learn Japanese, observe the conventions and build relationships across the organisation tend to find their influence growing over time.