weConnect Resources

Benefits Your Japanese Employees Will Expect

Statutory Social / Labor Insurance

Paid Leave – Statutory

Japan based employees will be granted additional days of paid leave to be added to their annual balance as per the following table. The leave will be effective for two years from the date awarded. This is the statutory minimum, however the company can grant more vacation if it chooses which can be a differentiator in the market when recruiting. (image TK below)

Commuting Allowance

Although not required by law, most of the Japanese companies will provide commuting allowance to employees to cover the expense of commuting to and from the office. The expense should be equal to the most economic route between the workplace and their home.

Private Pension

Many employees expect this benefit from large companies in Japan. Because new companies are not able to offer this benefit based on low headcount, except for a few specific programs, foreign subsidiaries usually pay more salary to compensate. Ask us directly for any updated information on the subject.

Other Supplemental Benefits

Most Japanese talent will not expect anything more than the above. Typically when recruiting, an upgraded title and a higher salary are the most attractive points Japanese talent consider. Although extras like housing allowance, car allowance, or life insurance can differentiate when recruiting, Japaense employees do not typically focus on these kinds of benefits.

Key Takeaways

The benefits Japanese talent expect include statutory and non-statutory benefits. weConnect can help you learn the ins and outs of these benefits, and how to incorporate them into your employment and HR documentation.