Employing a foreigner at "remuneration equal to or higher than a Japanese national": proving equivalence and the working-conditions notice

In short: "Remuneration equal to or higher than a Japanese national" when you employ a foreigner is a requirement stated expressly in the residence-status criteria ordinances. For Engineer/Specialist in Humanities/International Services, item 3 in the lower column of the relevant heading of the landing-criteria ordinance requires "remuneration equal to or higher than the remuneration received when a Japanese national performs the work." For Specified Skilled Worker, Article 1, paragraph 1, item 3 of the criteria ordinance requires "the amount of remuneration for the foreigner to be equal to or higher than the amount of remuneration when a Japanese national performs the work." Proof is best assembled with the wage rules, a wage table, and material explaining the comparison.

The residence-status application itself is the work of a Gyoseishoshi (四葉行政書士事務所), a business independent from our office (a Shakai Hoken Roumushi office) that you contract with separately. This article only organizes the framework; individual eligibility is decided by Immigration and qualified professionals. It focuses on the labor points a Shakai Hoken Roumushi can support: material to prove equal remuneration and a working-conditions notice with the mother-tongue version.

What exactly is compared for "remuneration equal to or higher than a Japanese national"?

First, note that the requirement is written expressly into the residence-status criteria. The basis is a different ordinance for each status.

Residence status	Basis	Wording
Engineer/Specialist in Humanities/International Services	Item 3, lower column of the relevant heading of the landing-criteria ordinance (Ministry of Justice Ordinance No. 16 of 1990)	Remuneration equal to or higher than that received when a Japanese national performs the work
Specified Skilled Worker (i)	Article 1(1)(iii) of the criteria ordinance (Ministry of Justice Ordinance No. 5 of 2019)	The amount of remuneration for the foreigner is equal to or higher than the amount for a Japanese national performing the work

What is compared is "the remuneration a Japanese national doing the same work receives" against "the remuneration paid to that foreigner." Under the Immigration Services Agency's practice, the benchmark is a Japanese employee who matches on job content and responsibility, academic and work background, in-house grade, and whether hired as a new graduate or mid-career (referenced September 2026). If there is a "Japanese national on the same terms" in the company, that person's wage is the first yardstick.

Setting a lower wage merely because the person is a foreigner fails the requirement and undermines the residence-status eligibility itself. The key is to have a wage table as an in-house yardstick and to be able to explain where the person sits within it. For the overall rules on disclosing working conditions, see disclosure of working conditions is also required for foreign workers: what changed from 2024.

How does a small company with no comparison employee explain equivalence?

In a small company with no Japanese national in the same job, the comparison is sought outside. Under the Immigration Services Agency's practice, you explain that the remuneration paid is reasonable by reference to job advertisements and wage levels at other companies in the same industry for comparable work (referenced September 2026).

• Set up wage rules and a wage table: hold, as in-house rules, a wage range per job and grade, and show which range and position the foreigner sits in. Having the rules themselves supports a non-arbitrary setting.
• Reinforce with external levels: use regional and occupational wage rates, job advertisements at comparable companies, and public wage statistics to back up that the amount paid is not below them.
• Use the explanation form: for Specified Skilled Worker, a reference form for an explanation of remuneration is provided, so the comparison is shown in writing.

Being small does not relax the standard; because there is no internal comparison, the burden of explaining "equal or higher" with rules and external levels actually increases. For who handles what across a hire, see when you employ one foreigner, how many windows do you need.

How are allowances, bonuses, and payments in kind counted for equivalence?

What counts as "remuneration" changes the conclusion. Under the Immigration Services Agency's practice, remuneration means what is paid as consideration for labor: bonuses and allowances for the job are included, while items with a nature of reimbursement of actual expenses—commuting, dependant, and housing allowances—are not (referenced September 2026).

Category	Counted for equivalence
Base pay and allowances for the job	Included
Bonus	Included
Reimbursement-type items such as commuting, dependant, and housing allowances	Not included

So even if you "matched the face amount by adding allowances," reimbursement-type allowances do not go on the yardstick. Payment in kind, such as renting company housing cheaply, is treated differently by system: it may be treated as payment in kind for social insurance standard remuneration, while reimbursement-type parts are not counted for the residence-status remuneration requirement. For the social-insurance treatment of company housing and payment in kind, see what happens to social insurance remuneration when you provide company housing. Building "equal or higher" from base pay, bonus, and job allowances is safer than the appearance of the face amount.

To what extent must the working-conditions notice be shown in the mother tongue?

Disclosure of working conditions itself is an obligation under Article 15(1) of the Labor Standards Act, with items set by Article 5 of the Ordinance for Enforcement. The amendment effective April 1, 2024 (Ministry of Health, Labour and Welfare Ordinance No. 39 of 2023) added the scope of change of workplace and duties, the renewal cap for fixed-term contracts, the opportunity to apply for conversion to open-ended employment, and the working conditions after conversion. For the scope of the amendment, see how did the working-conditions disclosure rules change.

As for language, the article does not specify one. However, the "Guidelines for Employers to Take Appropriate Measures for Improving the Employment Management of Foreign Workers" (Ministry of Health, Labour and Welfare Notice No. 276 of 2007) require efforts to disclose in a way the foreigner can understand, such as using the mother tongue or plain Japanese. This is a duty of effort. In practice, use the foreign-language version of the ministry's model working-conditions notice, hand over both the mother-tongue and Japanese versions, and record that they were "handed over and understood." Explaining the basis of the wage in a form the person understands also prevents later divergence. For the relationship with disclosure at the recruitment stage, see what must be stated on a job advertisement.

How does lowering wages after hiring affect residence renewal?

The equal-remuneration requirement is not met once at hiring and done. Whether working conditions are properly maintained is also looked at when the period of stay is renewed. If you cut only the foreigner's wage after hiring, a gap with a Japanese national in the same job arises, and it becomes hard to explain equivalence at renewal.

• When cutting wages, align it as a change to rules covering Japanese nationals too: a cut aimed only at the foreigner is hard to explain on equivalence and on labor grounds.
• Record raises and cuts along the wage rules: keep records—wage ledger, notices of appointment—of when, why, and how much changed.
• Keep a state you can explain at renewal: update the comparison material prepared at hiring to the current situation each renewal.

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For which of the period of stay and the contract term expires first, see which expires first, the period of stay or the employment contract term. For the overall picture of labor and residence when hiring Chinese/Taiwanese talent on Engineer/Humanities/International Services, see when hiring Chinese/Taiwanese talent on Engineer/Humanities/International Services, how to proceed with labor and residence. Whether a particular renewal is granted is a matter Immigration decides; this article only introduces the framework.

Who should you split labor preparation and residence application between?

Employing one foreigner sets several separate procedures moving at once. The division follows the nature of each procedure.

Procedure	In charge
Material proving equal remuneration (wage rules, comparison explanation), a working-conditions notice with the mother-tongue version, enrollment and notifications for labor/social insurance, work rules	Shakai Hoken Roumushi (our office)
Residence-status application/change/renewal (preparing and acting as agent for Immigration documents)	Gyoseishoshi (四葉行政書士事務所)
Notification of the employment status of foreigners at hiring/separation	The employer's obligation; a Shakai Hoken Roumushi can act as agent

Preparing the proof of equal remuneration and the working-conditions notice is labor work aligning with the wage rules—the domain of a Shakai Hoken Roumushi. Obtaining or changing the residence status itself is the domain of a Gyoseishoshi (四葉行政書士事務所), a business independent from our office that you contract with separately. When we introduce another professional, we arrange for you to contract directly and we receive no referral fee. Consultation is free; for fees see the fee schedule, and for frequently asked questions see the FAQ. Income and resident tax are the domain of a tax accountant.

Frequently asked questions

Q. What happens if I employ a foreigner at a lower wage than a Japanese national?
A. Both Engineer/Humanities/International Services and Specified Skilled Worker have criteria ordinances that expressly require "remuneration equal to or higher than that when a Japanese national performs the work." Setting a lower wage merely because the person is a foreigner fails the requirement and calls the residence-status eligibility itself into question. You need to be able to explain that it is equal or higher against the wage of a Japanese national in the same job, the wage rules, and external levels.

Q. How do I explain it when there is no comparable Japanese national in the company?
A. Under the Immigration Services Agency's practice, when there is no Japanese national in the same job, you explain that the remuneration paid is reasonable by reference to job advertisements and wage levels at comparable companies in the same industry. Setting up a wage table per job and grade as in-house rules and backing it with both the internal position and external levels lowers the explanatory burden.

Q. Can I meet the equal-remuneration requirement just by increasing allowances?
A. Remuneration includes what is paid as consideration for labor—bonuses and allowances for the job—but items with a reimbursement nature, such as commuting, dependant, and housing allowances, are not included. Because matching the face amount with reimbursement-type allowances does not go on the yardstick, building it from base pay, bonus, and job allowances is safer.

Q. Must the working-conditions notice always be made in the mother tongue?
A. Disclosure of working conditions is an obligation under Article 15(1) of the Labor Standards Act, but the article does not specify a language. The foreign-workers guidelines (Notice No. 276 of 2007) require efforts to disclose in a way the person can understand, such as the mother tongue or plain Japanese; this is a duty of effort. In practice, use the foreign-language version of the ministry's model notice and hand over both the mother-tongue and Japanese versions to confirm understanding.

Sources

• Engineer/Humanities/International Services remuneration requirement: item 3 in the lower column of the relevant heading of the Ordinance Setting the Criteria under Article 7(1)(ii) of the Immigration Control and Refugee Recognition Act (Ministry of Justice Ordinance No. 16 of 1990): "remuneration equal to or higher than that received when a Japanese national performs the work" (e-Gov Law Search; check the effective date and latest amendment each time).
• Specified Skilled Worker (i) remuneration requirement: Article 1(1)(iii) of the Ordinance Setting the Standards for Specified Skilled Worker Employment Contracts and Support Plans for i-Specified Skilled Foreign Nationals (Ministry of Justice Ordinance No. 5 of 2019): "the amount of remuneration for the foreigner is equal to or higher than the amount when a Japanese national performs the work" (e-Gov Law Search).
• Approach to the comparison and scope of remuneration: Immigration Services Agency practice (the benchmark is a Japanese national matching on job, background, in-house grade, and hire category; where none exists, reasonableness is explained with comparable-company job advertisements; remuneration is consideration for labor including bonuses and job allowances, excluding reimbursement-type items such as commuting, dependant, and housing allowances; for Specified Skilled Worker, a reference form for the explanation of remuneration is used; referenced September 2026).
• Disclosure of working conditions: Article 15(1) of the Labor Standards Act (Act No. 49 of 1947) and Article 5 of its Enforcement Ordinance (Ministry of Health and Welfare Ordinance No. 23 of 1947). The amendment effective April 1, 2024 (Ministry of Health, Labour and Welfare Ordinance No. 39 of 2023) added the scope of change of workplace and duties, the fixed-term renewal cap, the conversion-application opportunity, and post-conversion working conditions.
• Disclosure in the mother tongue (duty of effort): Guidelines for Employers to Take Appropriate Measures for Improving the Employment Management of Foreign Workers (Ministry of Health, Labour and Welfare Notice No. 276 of August 3, 2007): efforts to disclose working conditions in a way foreign workers can understand, such as using their language or plain Japanese (referenced September 2026).
• Ministry of Health, Labour and Welfare model working-conditions notice (foreign-language versions): model forms are published in English, Chinese, and other languages; use the latest version reflecting the added items (referenced September 2026).
• Business of a Shakai Hoken Roumushi: Article 2 of the Certified Social Insurance and Labor Consultant Act.

四葉不動産株式会社, 四葉行政書士事務所, and 四葉社会保険労務士事務所 each accept work as independent businesses. When we introduce another professional, we arrange for you to contract directly and receive no referral fee. What our office supports on proving equal remuneration is maintaining the wage rules, wage table, and comparison material, maintaining the working-conditions notice and employment contract including foreign-language versions, and checking consistency with the work rules. The residence-status application/change is handled by 四葉行政書士事務所 under a separate contract, and income and resident tax are the domain of a tax accountant. For fees, see the fee schedule; for frequently asked questions, see the FAQ.

This article is general information. Individual eligibility—whether a particular amount of remuneration is equal or higher, or whether a particular application/renewal is granted—depends on the circumstances. Application of the system and individual judgments are made by a qualified professional after a consultation, in light of the latest primary sources (the Immigration Services Agency, the Ministry of Health, Labour and Welfare, e-Gov, etc.) and individual circumstances. Written by Joji Uramatsu (Shakai Hoken Roumushi, Gyoseishoshi, Registered Real Estate Transaction Specialist).