Employer cost in Japan at different salaries
| Salary level | Gross salary | Employer SSC | Total employer cost |
|---|---|---|---|
| 67% of AW | 3,821,036 JPY | 15.7% | 4,419,410 JPY |
| 100% of AW | 5,703,038 JPY | 15.7% | 6,596,134 JPY |
| 167% of AW | 9,524,074 JPY | 14.0% | 10,857,792 JPY |
Worked example
The OECD average wage in Japan for 2025 is 5,703,038 JPY (about $59,729 in US-dollar purchasing power). On top of that salary the employer pays social security contributions of 15.7%, or 893,096 JPY. That brings the statutory total to 6,596,134 JPY a year (549,678 JPY a month), or 3,171 JPY per hour at 2,080 hours. In 2024 the rate at the average wage was 15.7%, so it was essentially unchanged. The employer rate falls from 15.7% at the average wage to 14.0% at 167% of it, a sign that contributions are capped above a ceiling, so high earners cost proportionally less.
Japan ranks #19 of 38 OECD countries for employer contributions at the average wage (OECD average: 16.6%).
Sources: OECD Taxing Wages 2025, comparative indicators (single worker, no children; average wage as defined by the OECD for each country) and OECD, Non-tax compulsory payments as an additional burden on labour income in 2025 (Tables 5 and 6) for mandatory pension and insurance payments that are not classed as taxes, such as Australian superannuation. Model estimates: voluntary benefits, local caps and sector-specific schemes are not included.
Related
Frequently asked questions
How much does an employee cost in Japan?
At the OECD average wage of 5,703,038 JPY, about 6,596,134 JPY a year including 15.7% employer social security (2025).
What are employer social security contributions in Japan?
About 15.7% of gross pay at the average wage, 15.7% at 67% and 14.0% at 167% of it (OECD model).