Overtime
+25%
beyond 8h a day / 40h a week
Over 60h a month
+50%
all employers since April 2023
Late night
+25%
10pm to 5am
Statutory day off
+35%
one day off a week
Statutory minimums under Article 37 of the Labor Standards Act, checked against the Ministry of Health, Labour and Welfare in September 2026. Employers can pay more.
See what overtime adds after tax
Enter your annual pay with and without overtime to compare take-home.
How Japan overtime pay calculation works
Two steps: find your hourly base, then apply the premium for each kind of hour.
1. Hourly base. Take your monthly pay and remove the allowances Article 37 lets employers exclude: family allowance, commuting allowance, separate-living allowance, children's education allowance, housing allowance that varies with your rent, one-off payments, and bonuses paid less often than monthly. Divide the rest by your average monthly scheduled hours (annual contracted hours ÷ 12). Allowances paid at the same rate to everyone, such as a flat housing or role allowance, stay in.
2. Premiums. Multiply the hourly base by the rate for each hour worked (MHLW):
| Type of hour | Minimum premium | Per hour on a ¥2,500 base |
|---|---|---|
| Overtime beyond 8 hours a day or 40 a week | +25% | ¥3,125 |
| Overtime beyond 60 hours in a month | +50% | ¥3,750 |
| Late night (10pm to 5am) | +25% | ¥3,125 |
| Work on a statutory day off | +35% | ¥3,375 |
| Overtime that is also late night | +50% | ¥3,750 |
| Day-off work that is also late night | +60% | ¥4,000 |
| Overtime beyond 60 hours, late night | +75% | ¥4,375 |
Overtime isn't counted on a statutory day off: those hours take the 35% day-off premium instead, plus 25% for any late-night hours.
Worked example: a ¥400,000 engineer
A Tokyo software engineer on ¥400,000 a month (after excluding commuting and family allowances), with 160 scheduled hours a month, has an hourly base of ¥2,500.
- A normal month with 20 hours of overtime: 20 × ¥3,125 = ¥62,500.
- A release month with 70 hours: the first 60 at 125% and the last 10 at 150% = ¥225,000, ¥6,250 more than paying everything at 125%.
- If 10 of those 20 hours ran past 10pm, add another 25% on them: +¥6,250.
Overtime is taxed and insured like the rest of your salary. If a heavy month falls in April, May or June, it also pushes up your social insurance grade from September. See why take-home drops in October.
Fixed overtime (koteizangyo): read the offer carefully
Many Japanese tech and sales offers quote a monthly salary that already includes a fixed amount of overtime (固定残業代). It is legal if the contract states the overtime amount and the hours it covers separately from base pay, and pays extra for hours beyond that.
It changes how you should compare offers. Take an offer of ¥450,000 a month including 30 hours of fixed overtime. Working backwards at the 25% premium, the base pay is about ¥364,557 and ¥85,443 is prepaid overtime. Against an offer of ¥420,000 with every overtime hour paid on top, the second offer has the higher base. It overtakes the first once you work about 9 overtime hours a month, and it gives a bigger base for bonuses set as months of base salary.
Who doesn't get standard overtime pay
| Arrangement | Overtime premium | Late-night premium |
|---|---|---|
| Management or supervisory position (kanri kantokusha), genuinely | No | Yes |
| Discretionary work system (sairyo rodo), for example some system engineering roles | Based on deemed hours in the agreement | Yes |
| Fixed overtime included in salary | Only above the fixed hours | Yes, unless included |
| Contractors and freelancers (gyomu itaku) | Not employees: no statutory overtime | No |
Being called a manager isn't enough to be exempt. Courts look at real authority, control over your own hours and pay that reflects the role. "Nominal managers" (na-bakari kanrishoku) have won back unpaid overtime.
Check your overtime pay in five minutes
- Find your base pay and allowances on your payslip, and remove only the allowances that vary with your circumstances.
- Get your average monthly scheduled hours from your employment rules (shugyo kisoku) or HR.
- Count overtime, late-night and day-off hours separately from your attendance record.
- If your salary includes fixed overtime, check the hours it covers and whether excess hours are paid.
- Recruiters placing candidates in Japan: state whether an offer includes fixed overtime and how many hours. It changes the real base.
Japan overtime pay: questions
How is overtime pay calculated in Japan?
Work out your hourly base: monthly base pay (without family, commuting and certain housing allowances, or bonuses) divided by your average monthly scheduled hours. Then pay at least 125% of it for each overtime hour, 150% beyond 60 overtime hours in a month. On ¥400,000 and 160 scheduled hours, the base is ¥2,500 and one overtime hour pays at least ¥3,125.
Why is my overtime rate lower than my salary divided by hours?
Because the base leaves out some pay. Family allowance, commuting allowance, housing allowance paid in proportion to rent, one-off payments and bonuses are excluded, so the hourly base is lower than your total monthly pay divided by your hours. A flat allowance paid to everyone regardless of circumstances generally can't be excluded.
Does the 50% rate over 60 hours apply to small companies?
Yes. Small and medium-sized companies had a grace period, but since 1 April 2023 every employer must pay at least 50% for overtime beyond 60 hours in a month.
What is fixed overtime (koteizangyo) and is it legal?
It is a set amount of overtime pay included in your monthly salary whether you work it or not, common in Japanese tech and sales offers. It is legal if the contract states the amount and the hours it covers separately from base pay, and the employer pays extra for any hours beyond it. An offer of ¥450,000 including 30 hours of fixed overtime has a base of about ¥364,557.
Do managers get overtime pay in Japan?
Employees who are genuinely in a management or supervisory position (kanri kantokusha) are exempt from overtime and day-off premiums, but not from the late-night premium. A 'manager' title isn't enough: the role needs real management authority, discretion over working hours and pay that reflects the position.
Is there a limit on how much overtime I can work?
Yes. Overtime needs a labour-management agreement (the 36 agreement). The standard limit is 45 hours a month and 360 a year. Under a special clause it can go higher, but never above 720 hours a year, under 100 hours in a single month including day-off work, and an average of 80 hours across any two to six months.
Does overtime affect my social insurance?
Yes, if it is paid in April, May or June. Those three months set your social insurance grade from September, so heavy spring overtime can raise your deductions for a whole year. Overtime is also taxed as normal salary.
Methodology and limits
Premium rates, the April 2023 extension of the 50% rate and the excluded allowances come from Article 37 of the Labor Standards Act as explained by the Ministry of Health, Labour and Welfare, checked in September 2026. Overtime limits are those set by the 2019 work-style reform for the 36 agreement.
The examples apply the statutory minimum premiums to an illustrative ¥400,000 base and 160 scheduled hours. The fixed-overtime split assumes the fixed amount is priced at exactly 125%. Your employer may pay higher rates, and some industries have their own rules. This is general information, not legal advice. For unpaid overtime, contact your local Labour Standards Inspection Office.
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