Employee Benefits in Japan

Bonuses and additional payments

In Japan, there is no 13th-month salary or other mandatory bonus payment. However, employers in Japan may elect to offer employees a bonus based on performance. 

Annual leave

Japanese employers are legally mandated to give employees paid annual leave, and many employees use their allotted annual leave to cover sick leave as well. Paid leave is allocated based on the length of time an employee has been with the employer.

• Six months of service: 10 days
• One and a half years of service: 11 days
• Two and a half years of service: 12 days
• Three and a half years of service: 14 days
• Four and a half years of service: 16 days
• Five and half years of service: 18 days
• Six and a half years of service: 20 days

Sick leave

Legally, employers in Japan are not required to offer sick leave (either paid or unpaid). While some companies may opt to offer employees designated sick days, most workers rely on their accrued annual leave in order to cover illness or injury. If needed, financial assistance during some leave may be available through national or private health insurance companies for extended circumstances.

In addition, Japan has recently rolled out guaranteed unpaid Child’s Nursing Leave for parents of children who are in the third grade or below, set at five days per child per year.

Parental leave

In Japan, several programs work together to provide leave for new parents, with the most recent updated in 2025.

• Maternity leave: Capped at 14 weeks for single births or 22 weeks for twins or other multiples, women can begin taking this leave before giving birth. They receive approximately 67% of their base pay through the national health insurance program.
• Paternity leave: Fathers are eligible for four weeks of leave paid at 67% of their base pay through the national health insurance program. This leave may be taken from birth until the baby is eight weeks old, and can be split so it’s not taken in succession.
• Extended leave: Japan has several programs for parents seeking extended leave, including a program known as Papa Mama Childcare Leave Plus (an extended leave specifically for parents who have been unable to secure childcare services) and unpaid days off for parents of sick children.

Under recent amendments to the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Members, employers in Japan with 100 employees or more must provide additional provisions to support parents of young children.

• Japanese employers must allow parents of children under three years of age to work from home, or they must offer reduced working hours (six hours per day).
• Under the two-measures rule, Japanese employers must meet two of the following criteria for parents whose children are three years of age or older but have not yet entered elementary school:

1. Reduced work hours
2. Telework (work from home)
3. Flex time
4. Extra family leave
5. Company-provided childcare

Mothers are also entitled to two 30-minute, paid nursing breaks per workday if they have children one year of age or younger.

Additional benefits

Many employers in Japan offer additional employee benefits that are not required by Japanese law. This includes supplementary insurance and annual medical check-ups; a commuting allowance to cover transportation costs to and from where work is being performed; and an extra bonus paid to highly skilled workers commonly known as a “qualification allowance.”

Especially in populous areas like Tokyo, some companies also offer housing subsidies, paid either as a flat allowance each month or as a percentage of the employee’s rent. Some companies also pay relocation costs for new workers.

As your employer of record in Japan, we can advise on competitive compensation packages tailored to your workforce.