Hire your remote team in Japan

Only 399 EUR per employee per month

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Hiring a remote team in a country as Japan comes with a lot of overhead, such as compliance, local laws, taxes, etc. As a company, you don't want to worry about knowing all the local laws. Instead you want to focus on your remote team and the business. Rivermate's Employer of Record (EOR)Ā solution helps companies hire remote employees in Japan. We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business.

A remote team

1. Hire a remote team in Japan with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in Japan, particularly if you don't have established local relationships. You can hire employees in Japan effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Introduction

Rivermate is a global employment solutions company that provides Employer of Record services in Japan.

As an employer of record, we help you hire employees and run payroll services in Japan, allowing you to avoid the necessity of first establishing a branch office or subsidiary in Japan.

It is not necessary to establish an entity in order to hire an employee. We can hire your employee in any country with a few mouse clicks. Using our Employer of Record solution, you can have full compliance, benefits, and automated payments.

If you wish to hire a remote team in Japan or individually hire remote employees in Japan, Rivermateā€™s global employer of record services will make sure that the process will be as seamless as possible for you.

Send us a message so we can talk about how Rivermateā€™s Employer of Record Japan services can best help your company!

3. Hire a remote team in Japan

Japan is classified as the world's 23rd free-market economy in the 2021 Index of Economic Freedom. Japan ranks sixth in the same measure, with Singapore, New Zealand, and Australia in the top three. Japan's population is 126.10 million people. With such a large population, Japan has one of the lowest jobless rates in the world. The COVID-19 epidemic slowed economic development in 2020. Nonetheless, the nation is attempting to normalize its economic development in 2021. The nation is well-known for its technical strength, as well as its banking, infrastructure, and service sectors.

The Japanese economy is one of the biggest in Asia, led by the IT and industrial industries. These industries employ thousands of people, including those from outside Japan. As a consequence, the variety of work prospects attracts recent graduates with technical expertise, soft skills, and a desire to achieve. The Japanese industry is technologically and scientifically sophisticated, and it draws top talent from all over the globe.

4. Cost of living in Japan

Japan's cost of living is $1171, which is 1.25 times more than the global average. Japan scored 43rd out of 197 nations in terms of cost of living and 18th in terms of quality of life.

In Japan, the average after-tax wage is $2440, which is enough to pay living costs for 2.1 months.

5. Cost of renting in Japan

Japan has the 15th highest cost of living in the world, according to World Data (2020), with a monthly income of US $3476. (JPY 383,037.82). Japan has one of the highest living costs in the world. Excluding rent, monthly living expenditures in Japan might easily reach US $2500 - 2700 (JPY 280,000 - 300,00). Osaka, Yokohama, and Tokyo are among Japan's most costly cities to live in. If you're searching for a more economical option, Kyoto and Fukuoka could meet the bill.

The cost of renting a home in Japan is determined by the size of the property and its location. Housing in Osaka, Yokohama, and Tokyo is more costly than in Kyoto and Fukuoka. If you are searching for a one-bedroom apartment in an affluent location, the rent per month is expected to be US $758.50 (JPY 83,582.42), while the cost for a one-bedroom apartment in a regular area is predicted to be US $525.93. (JPY 57,954.77). The rent is also affected by additional facilities you may have access to and your lifestyle.

6. Major industries in Japan

The ICT industry is the world's third biggest. The nominal GDP of the Japanese ICT sector is US $400 billion (JPY 44.2 trillion), followed by the commercial business, which has a nominal GDP of US $550 billion (JPY 61.4 trillion), and the real estate industry, which has a nominal GDP of US $ 540 billion (JPY 59.4 trillion). The government has attempted to introduce new initiatives in the ICT business, such as high resolution 4K cameras in different industries, continuous 5G connectivity, and high-quality infrastructure.

According to sources, the Japanese government spent an astounding $87 billion on pharmaceuticals. Japan is the world's third-largest spender on medication, after only China and the United States. A significant portion of the GDP is being set aside for pandemic research and development.

Japan's industrial sector is booming like never before. Japan was recently in the headlines for producing 49,900 industrial robots, making it the world's second biggest producer of industrial robots. Heavy digitization and modernisation of the manufacturing sector have transformed Japan into one of the world's most important manufacturing centres, particularly in the car, industrial robots, semiconductor, and machine tool industries.

7. Hiring cost in Japan

Hiring costs in Japan include the recruitment process, interviews, employee training, compensation, and any additional perks provided to the recruited employee. Some Japanese corporations employ recruiting services to find the best candidates. This procedure is also quite expensive and might increase the cost of recruiting.

8. Employment laws Japan

Employment laws in Japan place a strong emphasis on the employer-employee relationship, which protects employees against harassment (sexual or otherwise), discrimination, and retaliation (not only on the grounds of gender, social status, creed, or nationality but also on the basis of childcare and parental leave or due to association with any union activities). Equal remuneration for equal labor is required. If an employee works more than 40 hours a week, they are eligible to overtime pay. Statutory vacations should be compensated for. The labor legislation stipulates that pay, working hours, and other working conditions shall be established by law.

The three major labor laws in Japan are: -

- Trade Union Law (TUL)

- Labour Standards Law (LSL)

- Labour Relations Adjustment Law (LRAL)

9. Top skills Japan

Japan has one of the world's largest economies, and the IT industry is the largest sector in the Japanese economy, which raises the need for technical knowledge and skills in the employment process, particularly in the ICT and manufacturing sectors. Soft skills are also required by business firms to deal with overseas clientele and sales. English instructors, IT experts, salespeople, and other service workers are in high demand in Japan today.

If you are an employer interested in hiring remote workers in Japan, these industries are where there has been an immense growth over the last few years:

- Commerce Sector

- IT sector

- Real Estate Sector

- Medical Sector

- Construction Sector

- Transport Machinery Sector

Osaka, Yokohama, and Tokyo are three of Japan's most major employment hubs. Fukuoka, Kyoto, Aichi, and other places in Japan have emerged as prospective employment sources.

10. Economic landscape in Japan

According to Statista, the Japanese economy has been steadily growing year after year. Nonetheless, the country's economic growth rate is expected to fall by 4.83% in 2020, owing mostly to the pandemic. Experts anticipate a positive 3.25% economic growth rate for Japan in the first quarter of this year after studying the first quarter of this year. Unemployment has risen from 2.29% in 2019 to 2.34% in 2020. Japan has one of the lowest inflation rates in the world. Despite the fact that the 2020 inflation rate is -0.02%, Japan's GDP is still the third-largest in the world, valued at US $5,048.69 billion

11. Market size in Japan

According to an OECD estimate, GDP at market prices is expected to fall by 4.7% in 2020. The government has implemented new budgetary policies and is spending heavily in R&D operations in order to begin the process of containing the epidemic as soon as feasible. The unemployment rate rose from 2.19% to 2.34% in 2020, yet the government is working to enhance job possibilities for its citizens. According to the Japan Statistics Bureau, the consumer price index fell 0.1% from the previous year. It had also climbed by 0.3% over the previous month. The Japanese government's major goal was to stabilize the country's decreasing economic growth rate as quickly as feasible.

12. Minimum wage in Japan

Japanā€™s hourly minimum wage depends on the region. Currently, the region with the highest minimum wage is Tokyo whose employees are paid 985 Yen per hour while the lowest is Kagoshima whose employees are paid 761 Yen in an hour.

13.Why choose Rivermate to hire your remote team in Japan?

Establishing an entity in Japan to hire a team takes time, money, and effort. The labor law in Japan has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into Japan simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in Japan give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in Japan via our Employer of Record (EOR) / PEO solution.

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