Overtime premium rates at a glance: overtime 25%, holidays 35%, late night 25%, over 60 hours a month 50%Overtime and night work pay more than usual
A premium wage of at least 25% is paid for overtime beyond statutory working hours, at least 35% for work on legal holidays, and at least 25% for late-night work between 10 p.m. and 5 a.m. Overtime beyond 60 hours a month carries a premium of at least 50%, and the grace period for small and medium-sized enterprises was also abolished on April 1, 2023.
Key points
- When overtime and late-night work overlap, the rate is 1.25 + 0.25 = 1.50 times
- When holiday work and late-night work overlap, the rate is 1.35 + 0.25 = 1.60 times
- The 60-hour monthly test counts overtime only and does not include holiday work
- Family allowances, commuting allowances, separate-residence allowances, children's education allowances, housing allowances, irregular wages and wages paid for periods longer than one month can be excluded from the base for premium wages
What to do in practice
- Check that the premium rate settings in your payroll system are not lower than the rates above
- Check that the allowances excluded from the base wage are limited to the seven types that may be excluded
When you work more than the set hours, or late at night or on days off, you are paid extra on top of your usual hourly wage. This extra is called a premium. It is the minimum rate set by law, and some companies pay even more.
Points
- For overtime, 25% is added to your usual hourly wage
- From 10 p.m. to 5 a.m., 25% is added, and working on a set day off adds 35%
- Overtime beyond 60 hours in a month adds 50%
What the words mean
- Premium wage
- Money paid on top of your usual hourly wage
- Legal holiday
- The day off, at least once a week, that is set by law
- Ministry of Health, Labour and Welfare (MHLW): MHLW: Check your working conditions - overtime, holiday work and premium wages
This article summarizes and explains materials published by government agencies and is not advice on any individual case. Rules can change, so for actual procedures and decisions always check the latest original materials and consult professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence.