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Running a Business in Japan: Labor Insurance

Labor Insurance is a blanket term for several categories of insurance.

Companies withhold a certain amount from the salaries and other remuneration of their employees for Labor Insurance.

That includes Accident Compensation Insurance, which is completely covered by the company.

And Employment Insurance, which is covered in portions both by the company and the employee.

The premiums are paid once a year and the amount is calculated based on the Annual Labor Insurance Report, which has to be submitted by July 10th.

For more information on payroll, please feel free to contact us.

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