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In Japan, employees are entitled to at least 10 consecutive or nonconsecutive days of paid annual leave, if they meet the following conditions:

• Have been employed for at least 6 months
• Have reported to work at least 80% of the total working days

Persons employed for at least 1.5 years receive one additional day for each year of continuous service, up to a maximum of 20 days.

Unused annual paid leave may be carried over and taken the next year only. Payment in lieu of unused leave is subject to the agreement between the employee and the employer.

Under Japanese labor law, sick leave is not mandatory unless agreed upon in the employment contract. Employees must use their paid annual vacation days as sick leave, or they are not compensated. During absence from work due to work-related sickness or injury, employees are paid 60% of their average wage.

Maternity leave in Japan is set at 14 weeks, including 6 weeks of prenatal and 8 weeks of postnatal leave. If the employee is enrolled in the Employees' Health Insurance Scheme, it is paid at the rate of two-thirds of her daily wage.

Employers are prohibited from dismissing employees due to marriage, pregnancy, or childbirth. Dismissal of pregnant workers or employees in the first year after delivery is void unless the employer can prove just reasons for dismissal.

Paternity leave is provided and can be taken for 4 weeks (within the first 8 weeks). It is counted as parental leave and falls under child care leave taken by either parent until the child turns 1 year old. When both parents take child care leave, its duration will be extended until the child reaches the age of 1 year and 2 months. The first 180 days of parental leave are paid at 67% of the average earnings and the remaining period at 50%.

Fathers who have taken childcare leave within 8 weeks of the birth of their child can take a second leave within 1 year.

Beginning in April 2022, fixed-term contract employees will be entitled to parental leave. Employers must inform employees of the parental leave framework and take measures to facilitate the use of childcare leave.

Pension

The National Pension system guides the national retirement scheme in Japan. National Pension covers all persons living in Japan, including foreigners. They are separated into 3 categories:

• Category I – persons living in Japan aged 20 to 59
• Category II – persons covered by Employees' Pension Insurance or Mutual Aid Associations
• Category III – dependent spouses of Category II insured persons

A person can receive old-age pension benefits if they reach 65 years old, have contributed to the National Pension system for at least 10 years, and meet other requirements. For individuals who have contributed for at least 40 years, the benefits are JPY 831,700 (Japanese yen) annually for the fiscal year 2025. Those who have paid extra contributions receive 200 times the number of months for which they have made additional contributions as a benefit.

Employees covered under the Employees Pension Insurance scheme are entitled to benefits if they have paid premiums for at least 10 years. The amount of the benefit is calculated according to the insurance premiums paid and the length of the period over which they were paid. Employers must enroll part-time workers who make at least JPY 88,000 monthly, working at least 20 hours a week into the Employee Pension Insurance program.

Dependents/Survivors Benefits

In Japan, if a person insured under the National Pension System dies, the surviving spouse who takes care of the deceased's dependent children and the dependent children themselves are eligible for a survivor's pension. Eligible children must be 18 years or younger or up to 20 years of age if they have a disability. Survivors receive a pension if they fulfill eligibility criteria.

If an insured person dies without receiving a pension, a surviving family member can receive a lump-sum death benefit. The insured person must have been in Category I (persons living in Japan aged 20 to 59) and paid at least 36 months of contributions. Depending on the deceased person's contributions, the surviving relative will receive between JPY 120,000 and JPY 320,000.

Under the Employees Pension Insurance, an insured person who is eligible to receive an old-age pension or a person receiving a disability pension who fulfills certain conditions dies, and a survivor's pension shall be paid to that person's surviving family.

If an employee dies due to a work-related illness or accident, the employer must compensate the employee's dependents. The amount must be equivalent to the average wage earned over 1,000 days.

Invalidity Benefits

The National Pension System of Japan provides a disability pension to insured persons, which the System covers on the date of their first medical examination for disabling injury or illness. Employees must have paid contributions for at least two-thirds of the entire period of insurance coverage until 2 months before the medical examination. The amount of the benefit depends on the category of disability.

A person who suffers a work-related illness or injury and remains disabled after treatment and recovery is entitled to compensation. The employer will pay compensation for the injury based on by multiplying the average wage by the number of days prescribed by law. The average wage is calculated by dividing the total amount of wages for a period of 3 months preceding the day the injury arose by the number of days during the period.

For employees covered under the Employees Pension Insurance, where the illness or injury that causes disability occurs during the period when the disabled party is insured, the regular pension or lump sum shall be paid to the disabled party. The benefit amount is calculated according to the degree of disability, the amount of insurance premiums paid, and the length of the period over which they were paid.

In Japan, children are not allowed to work in any establishment until March 31 on or after the day they reach the age of 15. However, persons at least 13 years of age may be employed in jobs that involve light labor and do not jeopardize their health or well-being, only if they have the permission of the relevant government agency.

Minors are allowed to work up to seven hours a day, or 40 hours a week, including school hours. Night work, meaning the hours between 10:00 PM and 5:00 AM, is prohibited for minors, however, males age 16 and over who are employed on a shift work basis can work at night.

An employer must keep a family registry certificate that proves the age of a worker under 18 years of age at the workplace at all times.