Japan Statutory Updates 2025

We’ve outlined Japan statutory updates for 2025

Effective April 2025

Japan Adjusts Social Contribution Rates

The Japanese government has announced updates to social contribution rates, affecting both employers and employees. These changes aim to enhance the social welfare system while maintaining economic stability.

Here are some key details:

1. Health Insurance (Employer and Employee) from 4.99% to 4.955%
2. Nursing Care Insurance (Employer and Employee) (applicable only for age 40–64) from 0.80% to 0.795%
3. Employment Insurance (Employer and Employee) employer from 0.95% to 0.90% and employee from 0.60% to 0.55%

Please find the updated social rates and tax table below:

Japan Increases Immigration Fees and Extends Startup Visa Duration

Japan will raise immigration application fees and extend the stay duration for the startup visa under the designated activities category starting 1 April 2025.

Key Changes:

1. Fee Increases:
   • Change of Status/Extension of Stay:
     • Current: 4,000 yen (~US$25) → Physical filing: 6,000 yen (~US$38); Online filing: 5,500 yen (~US$35).
   • Permanent Residency:
     • Current: 8,000 yen (~US$51) → 10,000 yen (~US$63) (both physical and online filings).
   • Multiple Re-entry Permit:
     • Current: 6,000 yen (~US$38) → Physical filing: 7,000 yen (~US$44); Online filing: 6,500 yen (~US$41).
   • Certificate of Authorized Employment (CAE):
     • Current: 1,200 yen (~US$8) → Physical filing: 2,000 yen (~US$13); Online filing: 1,600 yen (~US$10).
2. Startup Visa:
   • Stay duration extended to two years (previously one year with renewal). The six-month initial visa period remains unchanged.

Source: BAL

Japan Advances Corporate Governance Reforms

Japan will implement updated corporate governance measures under its Action Program for Corporate Governance Reform 2024, focusing on enhanced transparency, sustainability, and investor engagement.

Key Updates:

1. Mandatory English Disclosures:
   • Listed companies must disclose financial results and timely information in English starting April 2025.
2. Sustainability Metrics:
   • Companies must report diversity data, including gender pay gaps and the percentage of women in managerial roles, with a target of 30% female executives by 2030.
3. Enhanced Cross-Shareholding Disclosure:
   • Boards must assess and disclose the purpose, benefits, and risks of cross-shareholdings annually to ensure they align with corporate value and capital cost.
4. Global Investor Engagement:
   • Companies are encouraged to engage actively with global investors through transparent communication and align with international standards.

Source: Financial Services Agency (FSA), Japan

Tokyo Government Implements 4-Day Workweek for City Employees

Starting April 2025, Tokyo’s city government will introduce a 4-day workweek for government employees, allowing them to take three days off each week. This initiative aims to promote work-life balance, improve employee well-being, and attract talent to the public sector.

Source: CNN

Effective March 2025

Japan Introduces TB Screening for Certain Visa Applicants

Japan will require Tuberculosis (TB) screening certificates for mid- to long-term visa applicants from select countries.

Key Details:

• Affected Countries:

• • Philippines & Nepal: Required from June 23, 2025 (testing starts March 24).
  • Vietnam: Required from September 1, 2025 (testing starts May 26).
  • Indonesia, Myanmar & China: Implementation pending.
• Who Needs It: Most mid- to long-term visa applicants, except for healthcare, government-sponsored, and certain skilled workers.
• Process: Applicants must get chest X-rays from approved clinics, valid for 180 days, and submit certificates with COE or visa applications.

Source: Fragomen