Overtime Premium: Who Qualifies and What You Get
Learn how much extra pay you should receive for working extra hours, late at night, or on holidays in Japan.
This scheme ensures that employees who work beyond their standard contracted hours receive extra compensation for their time.
Who it's for
This applies to non-exempt employees. These are workers who are entitled to overtime pay under labor regulations rather than those in specific management or professional roles that may be exempt from these specific rules.
What you get
When you work extra hours, you are entitled to a premium added to your pay. According to the rules, you should receive a 25% premium for overtime. If your work extends into late night hours or falls on holidays, the premium increases to 35%.
What it costs you
There is no cost to you to receive these payments; they are part of your earned wages for the time you have worked.
The catch to know
A common complication is a practice known as "fixed overtime," or "minashi zangyo." In these arrangements, a company may include a set amount of overtime pay as part of your regular salary. While this is a common business practice, it can sometimes make it difficult to track your actual hours worked or ensure that you are being paid correctly if your actual extra hours exceed the amount already bundled into your pay.
How to apply
- Carefully review your employment contract to see if "fixed overtime" is mentioned.
- Maintain a personal record of your daily start and end times to track actual hours.
- Compare your recorded hours against the pay slips provided by your employer.
- If you notice discrepancies, consult with your employer or a labor professional.