G-P is the top pick for Japan compliance — operating here since 2012 with native Japanese employment lawyers on staff. Deel is the best for speed — first payroll in 5–10 business days, the fastest of any reviewed provider. Japan is the single most compliance-complex EOR market in Asia; the wrong provider choice here isn’t just inconvenient, it’s a legal liability.

Japan’s Shakai Hoken registration, 36 Agreement requirements, near-impossible termination rules, and expectation of Japanese-language HR documents create a compliance environment where provider depth matters more than anywhere else in Asia.

Why Japan Requires a Specialist EOR

Hiring in Japan trips up even experienced HR teams:

• Shakai Hoken (社会保険): Mandatory social insurance covering health insurance (Kenko Hoken) and employees’ pension (Kosei Nenkin). Employer contribution is approximately 15% of monthly salary.
• Labour Standards Act (労働基準法): One of Asia’s most employee-protective frameworks. Wrongful dismissal is difficult and expensive to defend.
• 36 Agreement (三六協定): Companies must file a formal agreement with the Labour Standards Inspection Office before employees can work overtime. EOR providers must manage this on your behalf.
• Termination restrictions: Japan has no at-will employment. Termination requires documented cause, notice, and in many cases severance. Courts routinely reinstate wrongfully dismissed employees.
• Japanese-language contracts: Employment contracts, payslips, and tax documents must be in Japanese. Your EOR must have native Japanese HR staff — not just translation services.

Top EOR Providers for Japan

1. G-P — Best for Japan Compliance

G-P has operated in Japan since 2012 — longer than any other reviewed provider. Their in-country team includes native Japanese employment lawyers and HR specialists, not just operations staff. For a market where one procedural mistake in a termination can land you in court, that institutional depth is worth paying for.

Japan-specific strengths:

• Owned legal entity (no third-party partners)
• Dedicated Japanese-speaking account managers
• Proactive 36 Agreement management and renewal tracking
• Battle-tested termination procedures with local legal counsel on retainer

Weakness: The most expensive option (from $699/mo, often higher for Japan due to Shakai Hoken complexity). Sales process requires multiple calls before onboarding begins.

Best for: Enterprises and regulated industries where Japan compliance risk is the primary concern.

2. Deel — Best for Japan Speed

Deel’s owned Japan entity and significant investment in Japan-market compliance make it the fastest compliant option. First payroll typically runs in 5–10 business days — fast by Japan standards where most providers take 2–4 weeks.

Japan-specific strengths:

• Owned entity
• Automated Shakai Hoken enrollment
• Japanese-language payslips and HR documents
• Strong integration with Japanese banking systems for local currency disbursement

Weakness: Less institutional depth than G-P for complex termination scenarios. Support for edge cases routes through a general compliance team rather than Japan specialists.

Best for: Companies that need fast, compliant Japan onboarding without enterprise pricing.

3. Remote — Best for Japan IP Protection

Remote’s Japan entity and IP-first contract approach make it the top choice for tech companies hiring engineers in Japan. Japanese employment law recognises work-made-for-hire, but the provisions differ from US and EU norms — Remote’s localised contracts address this explicitly.

Japan-specific strengths:

• Owned entity
• IP assignment clauses localized to Japanese law
• Free contractor tier (valuable for testing Japan hires before committing to EOR)
• Transparent Shakai Hoken cost breakdown in every quote

Best for: Tech companies hiring software engineers in Japan where IP protection is critical.

4. Multiplier — Best Value for Japan

At $400/mo, Multiplier is $200–300/mo cheaper than G-P or Deel for Japan. Japanese-language support is available, though G-P and Deel have larger Japan teams.

Japan-specific strengths:

• Owned entity
• $400/mo — the most affordable Japan EOR with owned-entity status
• Same-day onboarding initiation (though Japan compliance still takes time regardless)

Weakness: Smaller Japan team than G-P. Not appropriate for complex terminations or large headcounts.

Best for: Startups and SMBs hiring 1–5 employees in Japan where cost matters more than deep compliance expertise.

5. Rippling — Best for Companies Already Using Rippling

Rippling’s Japan coverage is solid for companies already on the platform. The main limitation is Japanese-language support — Rippling’s in-country team is smaller and the platform is primarily English. For Japan-native employee experience, this is a genuine gap.

Best for: Companies already using Rippling domestically who want to extend to Japan without adding a new HR system.

Japan Compliance Checklist for EOR Users

When evaluating any Japan EOR, ask:

1. Do you own your Japan entity? (Not a third-party partner arrangement)
2. Do you have native Japanese-speaking HR and compliance staff?
3. How do you handle the 36 Agreement filing? (Who initiates, who tracks renewal)
4. What is your average Japan onboarding timeline from contract signing?
5. Walk me through your Japan termination process — specifically what happens if the employee disputes the termination
6. What is the all-in cost for Japan including Shakai Hoken? (Get this in writing before signing)

Japan EOR Costs — What to Expect

Unlike simpler markets, Japan EOR costs are significantly higher due to Shakai Hoken:

For a Japan employee earning ¥500,000/mo ($3,300/mo), total employer cost is approximately $3,800–$4,100/mo before the EOR fee.

Frequently Asked Questions

Can a foreign company employ someone in Japan without an entity? Yes — via an EOR. The EOR’s Japan entity signs the employment contract. This is the standard approach for foreign companies testing Japan before incorporating.

How long does it take to onboard an employee in Japan via EOR? Typically 1–3 weeks. The Shakai Hoken registration process involves government filings that cannot be accelerated. Deel and Multiplier are fastest at around 5–10 business days.

Is it difficult to terminate an employee in Japan via EOR? Japan has the strictest termination protections in Asia. Termination requires documented just cause, a notice period (30+ days), and in many cases severance. Budget for at least one month of additional payroll cost when planning a termination, and involve your EOR’s Japan legal counsel from the start.

What is the Shakai Hoken and how does it affect EOR costs? Shakai Hoken is Japan’s mandatory social insurance covering health insurance and employee pension. The employer’s contribution is approximately 15% of the employee’s monthly salary — significantly higher than Singapore’s CPF (~17% employer-only equivalent) or the Philippines (~10%). This is passed through by EOR providers at cost and adds substantially to total per-employee cost.

Which EOR is best for hiring software engineers in Japan? Remote for IP protection as the priority. Deel for onboarding speed. Both own their Japan entity and have strong engineer-hiring experience.

AK Anchal Katyal Published January 1, 2026