Japan has a mandatory social insurance system that provides healthcare, retirement, unemployment, and workplace injury benefits. Mandatory payments are made by both employers and employees. The employer withholds employees’ social security contributions from their salaries, and pays these together with his/her contributions to the relevant authorities.
Much like a social security number in the US, Japan has introduced a resident record system called ‘My Number’. It requires all companies in Japan to collect and manage the numbers for their employees. As My Number Management in Japan is considered Sensitive Personal Information (SPI), companies are required to have a high level of security and discretion when handling the data. Those who leak identity numbers or data, face criminal punishment and/or civil penalties.
Our TMF Group Japan team works with your HR department to ensure they comply with Japanese regulations.
Our local team in Japan can help with:
- Calculation and payment of payroll
- Statutory filling for employees’ tax, social insurance and labour insurance
- Social security processes and lodgements
- Reporting solutions to securely manage global data and payment processes
- Implementation of HR policies and terms into local contracts and procedures
- Employment contract preparation and execution
- Implementation of special programs in compliance with Japanese laws