Who pays the Child & Childcare Support Contribution?

The 0.36% Child and Childcare Contribution (Kodomo Kosodate Kyoshutsukin) is levied 100% on the employer with zero employee deduction.

What is the typical labor cost multiplier in Japan?

A 5 million JPY employee typically costs an employer 6.3 to 6.8 million JPY (a 1.25x to 1.35x multiplier) including statutory welfare and workspace overhead.

JapanUpdated for 2026Finance

Japan Employer Total Labor Cost Calculator 2026 (Houtei Hukuriki)

Calculate an employer's true total cost of employing staff in Japan, incorporating mandatory statutory welfare expenses (~16% for company-side health, pension, employment, and workers' compensation).

Payroll & Deductions Salaries & Monthly Wages Corporate Income Tax

Calculated Result

Total Annual Employer Employment Cost

¥6,367,500

Company Statutory Welfare Total (~15.8%)

¥787,500

Calculator Inputs

Employee Annual Gross Salary (Including Bonus)

Quick select:

Annual Commuting Allowance Paid

Quick select:

Annual Workplace Overhead (IT, Health Checks, Admin)

Quick select:

Total Annual Employer Employment Cost

¥6,367,500

Company Statutory Welfare Total (~15.8%)

¥787,500

Labor Cost Multiplier

1.27 x

Health & Pension Company Share

¥707,000

Childcare Levy (0.36%)

¥18,000

Labor Insurance Burden

¥47,500

Employer social security overhead and facilities bring the total budget to over 1.25x base salary.

Total Labor Cost Breakdown

Gross Base Salary

¥5,000,000(86%)

Company Statutory Welfare Total (~15.8%)

¥787,500(14%)

Based on 2026 statutory employer contribution rates (including the 0.36% Child & Childcare Contribution paid 100% by the employer).

This calculator is a mathematical model for general financial estimation, planning, and educational guidance. Results depend on your inputs and standard formulas, and do not constitute binding financial, tax, or investment advice. Always consult a qualified professional before making financial decisions.

Official Statute: 健康保険法・厚生年金保険法・労働保険徴収法 (事業主折半負担・子ども子育て拠出金0.36%及び労災保険料全額負担)Last Verified: 2026-09-03

Calculation Methodology

Total Employer Cost = Annual Gross Salary + Statutory Welfare Overhead (~15.8%) + Commuting/Benefits.

Frequently Asked Questions

Combining health insurance (~5%), pension (9.15%), child support levy (0.36%), employment insurance (0.95%), and workers' comp (~0.3%) totals ~15.8% on top of gross salary.