Total cost of employment in Japan — employer burden calculator
Estimate the total cost an employer pays for a Japanese employee, including social insurance employer contributions (health, pension, employment, workers comp, childcare levy). Useful for hiring budget planning.
Tell us about the employee
Breakdown — employer burden by component
| Item | Monthly | Annual |
|---|---|---|
| Gross salary (paid to employee) | 300.000 ¥ | 3.600.000 ¥ |
| Health insurance (employer half, ~4.99%) | 14.970 ¥ | 179.640 ¥ |
| Employees pension (employer half, ~9.15%) | 27.450 ¥ | 329.400 ¥ |
| Employment insurance (employer share, ~0.95%) | 2.850 ¥ | 34.200 ¥ |
| Workers compensation (~0.3%, industry avg) | 900 ¥ | 10.800 ¥ |
| Child-care levy (~0.36%, employer only) | 1.080 ¥ | 12.960 ¥ |
| Bonus + employer add-on (annualized) | — | 926.000 ¥ |
| Employer total cost | 347.250 ¥ | 5.093.000 ¥ |
Based on Tokyo 2024 rates (協会けんぽ). Rates vary by prefecture, industry (workers comp), and health insurance association. Excludes commuting allowance, training, severance reserve, and other welfare costs.
Frequently asked questions
How accurate is this estimate?
Within ±2% for typical office work in Tokyo. Workers compensation varies significantly by industry (construction can hit 1-2%). Health insurance association rates differ (-0.5% to +1.5% around 9.98%). For an exact quote, consult your shakaihoken rooshi (社会保険労務士).
What is not included?
Commuting allowance, business travel, training, equipment, severance reserve, voluntary benefits, retirement allowance, and corporate income tax effects. Add roughly 5-15% on top for these items in mature firms.
Why is the multiplier around 1.16?
Approx breakdown: Health 4.99% + Pension 9.15% + Employment 0.95% + Workers comp 0.3% + Childcare 0.36% = 15.75%. Add kaigo 0.8% for ages 40-64, giving ~16.5%.
Does this apply to part-time / contract workers?
This calculator assumes a regular full-time employee. Part-time workers with under 20h/week may not enroll in social insurance (depending on company size and total wages). Contractors/freelancers have no employer-side social insurance burden — they pay national health insurance and pension themselves.