Japan Employee Cost Calculator (2026)
An employee in Japan costs the salary and bonuses plus about 15.7% in employer social insurance: half of health insurance (9.85% in Tokyo) and employees' pension (18.3%), the new child support levy, the 0.36% child-rearing contribution, 0.85% employment insurance and 0.3% accident insurance. A ¥350,000-a-month employee costs about ¥5.39 million a year.
· Calculated with AiStaffo
Employer costs in Japan
| Health insurance | Kyokai Kenpo FY2026 rate 9.85% in Tokyo (varies by prefecture), split half and half, on standard monthly pay up to ¥1,390,000 |
|---|---|
| Long-term care insurance | Extra 1.62% (employer 0.81%) for staff aged 40 to 64; not included |
| Child and childcare support levy | New from April 2026 pay: 0.23%, split half and half |
| Employees' pension | 18.3%, split half and half, on standard monthly pay up to ¥650,000 |
| Child-rearing contribution | 0.36%, paid by the employer alone, on the pension base |
| Employment insurance | FY2026 general businesses 13.5/1,000: employer 8.5/1,000, worker 5/1,000 |
| Workers' accident insurance | Employer only; 3/1,000 for office and other businesses |
| Paid leave | 10 days in the first year rising to 20, plus about 17 national holidays on weekdays in 2026 |
Worked example
An employee on ¥350,000 a month (¥4.2 million a year including bonuses): health insurance ¥206,850, child support levy ¥4,830, pension ¥384,300, child-rearing contribution ¥15,120, employment insurance ¥35,700, accident insurance ¥12,600, laptop and software about ¥250,000, hiring spread over 3 years ¥280,000. Total about ¥5.39 million a year, 1.28 times the salary.
What counts in the true cost of an employee
Salary is only the start. The calculator adds what the law makes the employer pay (social security, pension, unemployment insurance, end-of-service build-up), what the job needs (health insurance, visas, a laptop and software), and what staff turnover costs (advertising, interviews, training and lost output each time someone leaves, spread over the years an employee usually stays). Dividing by the days actually worked gives the cost of one productive hour.
The automation saving, explained
Most office roles are partly routine: typing data in, chasing replies, matching payments, compiling reports. The calculator takes the share of the role you set as routine and compares what that part costs with an AI worker doing it: a one-time build and a monthly fee (AiStaffo's starting price, editable under "Assumptions"). The person keeps the judgement work; the routine part stops costing a salary. Book a free automation audit and we will measure the routine share of your own roles.
Please note: rates are as checked on 21 October 2026 from official and reputable sources; amounts marked as defaults are typical estimates you can change. The automation figures are illustrations based on the assumptions shown, not a promise of savings; AiStaffo prices are set in a written quote. This is a planning guide, not tax or legal advice.
Sources
Questions people ask
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