The cost of an Employer of Record (EOR) in Japan is typically US$199 to US$699 per employee per month as of September 20, 2026. The EOR fee is only one part of the budget. Employers also pay the employee's gross salary and Japan's statutory employer contributions, which generally add about 15% to 17% of payroll before optional benefits and allowances.
Japan EOR Cost at a Glance
| Cost component | Typical amount |
|---|---|
| EOR management fee | US$199 to US$699 per employee/month |
| Employer social and labor insurance | Approximately 15% to 17% of payroll |
| Employee gross salary | Depends on the role and location |
| Benefits and allowances | Variable |
| Visa, immigration, deposits and special services | Provider-specific |
| Setup or termination fees | May be included or charged separately |
The basic budgeting formula is:
Total Japan EOR cost = gross salary + employer statutory contributions + EOR fee + benefits and additional services
What Do EOR Providers Charge in Japan?
Published prices vary by provider and service package:
| Provider | Published EOR price | Pricing note |
|---|---|---|
| RemoFirst | From US$199 per employee/month | Country requirements can affect the final price. |
| Multiplier | US$459 per employee/month with annual billing, or US$499 monthly | Growth pricing starts at US$519 annually or US$559 monthly. |
| Deel | US$599 per EOR employee/month | Published as a global EOR rate. |
| Remote | US$699 per employee/month | Remote states that its EOR product has no platform, onboarding or setup fees. |
These are list prices, not guaranteed Japan-specific quotes. The final price may change based on local requirements, benefits, immigration support, payment methods, headcount and contract terms.
For planning, US$400 to US$700 per month is a more useful working range for many established EOR providers. The US$199 price is a low published starting rate and may not apply to every Japanese employment arrangement.
How Much Are Japan's Employer Payroll Contributions?
Employers in Japan contribute to several insurance and social security systems. The main costs include:
- Health insurance
- Employees' pension insurance
- Employment insurance
- Workers' accident compensation insurance
- Childcare and child-rearing-related employer contributions
- Long-term care insurance for employees aged 40 to 64
Japan's Employees' Pension Insurance rate is 18.3% in total, split equally between the employer and employee. The employer generally pays 9.15% of the applicable standard remuneration.
For fiscal year 2026, the total employment insurance rate for general businesses is 1.35%. The employer portion is 0.85%. Workers' accident compensation insurance is paid by the employer, and the rate depends on the business category.
Health insurance rates vary by prefecture. In Tokyo, the 2026 Kyokai Kenpo health insurance rate is 9.85%, normally divided between the employer and employee. Employees aged 40 to 64 also incur the long-term care insurance rate, which is 1.62% nationally for fiscal year 2026.
These percentages are not applied directly to every yen of salary. Japan calculates many contributions through standard monthly remuneration grades and separate bonus calculations. Contribution ceilings can also reduce the effective percentage for higher salaries.
Example: Japan EOR Cost for a ¥500,000 Monthly Salary
Assume the employee:
- Works in Tokyo
- Earns ¥500,000 per month
- Is under age 40
- Works in a standard office-based business
- Receives no bonus or special benefits
A planning estimate would look like this:
| Cost | Monthly amount |
|---|---|
| Gross salary | ¥500,000 |
| Employer statutory contributions, approximately 15% to 17% | ¥75,000 to ¥85,000 |
| EOR management fee | US$199 to US$699 |
| Estimated cost before benefits and extras | ¥575,000 to ¥585,000 plus the EOR fee |
Using a US$599 EOR fee as an example, the monthly budget would be:
¥500,000 salary + approximately ¥78,000 in statutory costs + US$599 EOR fee
The annual amounts would be approximately:
- ¥6,000,000 in gross salary
- ¥936,000 in employer statutory contributions
- US$7,188 in EOR fees
This excludes bonuses, benefits, reimbursements, foreign exchange costs and other services.
The ¥78,000 statutory estimate is an illustration based on 2026 contribution rates. The actual amount depends on the employee's prefecture, age, remuneration grade, industry and compensation structure.
What Does the EOR Fee Usually Include?
A Japan EOR fee commonly covers:
- Japanese employment contract preparation
- Employee onboarding
- Monthly payroll processing
- Tax withholding and payroll reporting
- Social insurance administration
- Benefits administration
- Local HR support
- Employment compliance guidance
- Leave and employee record administration
- Termination and final payroll processing
Deel lists contracts, payroll, benefits administration, tax filings, compliance and HR support among its EOR services. Multiplier lists compliant employment, payroll, statutory filings, benefits administration and HR support in its EOR plans.
The scope varies by provider. A lower headline fee may exclude visa sponsorship, immigration work, enhanced HR support, equipment, foreign exchange margins or special termination services.
Additional Japan EOR Costs to Check
Before comparing quotes, confirm whether the price includes the following:
Employee benefits Private medical insurance, supplemental benefits, allowances and company-specific benefits may cost extra.
Visa and immigration support Work visa applications, renewals and Certificate of Eligibility support may be priced separately.
Bonuses and allowances Bonuses, commuting allowances, housing allowances and other payments can increase payroll and statutory contributions.
Foreign exchange charges A provider may invoice in US dollars while paying the employee in Japanese yen. The exchange rate margin can affect the total cost.
Security deposits Some providers require a refundable deposit for payroll, termination or severance exposure.
Termination costs Check for notice-period funding, final payroll charges, severance administration and offboarding fees.
Minimum terms and annual commitments RemoFirst states that it has no annual contracts, minimums or setup, onboarding and termination fees. Remote also states that it does not charge platform, onboarding or setup fees for EOR services. These terms are provider-specific.
Is an EOR Cheaper Than Opening a Japanese Entity?
An EOR is often easier to budget for a small number of employees because it avoids the initial work of establishing and administering a Japanese entity. The trade-off is a recurring fee of several hundred US dollars per employee each month.
For one or two hires, compare:
- EOR fees over the expected employment period
- Japanese entity formation and maintenance
- Payroll and accounting costs
- Local HR and labor-law support
- Corporate tax and banking administration
- Immigration and employment compliance
- Expected hiring volume over the next two to three years
A company planning to employ a larger Japanese team for several years may eventually achieve lower per-employee costs through a local entity. For a single employee who needs to start quickly, an EOR is often the simpler option.
Bottom Line
For a ¥500,000 monthly salary in Japan, the estimated cost before the EOR fee is ¥575,000 to ¥585,000 per month. Add the provider's management fee, which may range from US$199 to US$699 per employee per month, plus any benefits, immigration services, foreign exchange costs, deposits or termination charges.
The best way to compare providers is to request an itemised Japan quote. It should show the management fee, employer contributions, benefits, exchange rate, deposit, visa services and termination costs.