How long is annual leave in Japan?

In Japan, employees are entitled to annual leave based on their continuous service period and work attendance. Employees must be employed continuously for 6 months and have worked at least 80% of all working days to be eligible for annual leave. The entitlements increase with the length of service as follows:

• After 6 months of continuous service: 10 days
• After 1 year and 6 months: 11 days
• After 2 years and 6 months: 12 days
• After 3 years and 6 months: 14 days
• After 4 years and 6 months: 16 days
• After 5 years and 6 months: 18 days
• After 6 years and 6 months, and each year thereafter: 20 days

How is annual leave accrued in Japan?

In Japan, annual leave accrues after a supported employee has completed 6 months of employment, provided they have worked at least 80% of the working days during that period.

In the following years, if the supported employee continues to work at least 80% of the working days in the preceding year, their annual leave entitlement increases. This increment in leave continues until the supported employee receives a maximum of 20 days of annual leave per year.

What is the carry-over policy for annual leave in Japan?

In Japan, if a supported employee is unable to utilize all of their accrued annual paid vacation days within the relevant year of employment, they may carry over unused paid vacation days up to a maximum of 20 days to the immediately following year. However, no unused paid vacation days may be carried over beyond the year immediately following the year in which the paid vacation accrued, as per the employment agreement.

How is paid time off (PTO) calculated in Japan?

Paid time off (PTO) in Japan is calculated using the following method:

• Daily Salary: This is computed by adding the monthly compensation and any recurring allowances, then dividing the sum by the monthly average prescribed working days for the year, which is 20.60 in 2024.
• PTO Balance: This is the remaining unused PTO that the supported employee has.

The final PTO calculation formula is: Daily Salary multiplied by the PTO Balance.

What is the process to request annual leave in Japan?

When a supported employee in Japan wishes to take annual paid leave, they must apply in advance in writing. The application should designate the time, date, and term of the leave.

Is unlimited PTO an option in Japan, and how can it be accommodated?

Legally, unlimited Paid Time Off (PTO) can be accommodated in Japan.