What Is the Required Salary Level for Japan Transferee VISA?
What Is the Required Salary Level for Intra-Company Transferees Dispatched to Japan?
When a foreign parent company dispatches an employee to its subsidiary, branch, or representative office in Japan under the “Intra-Company Transferee” status of residence, the employee must receive compensation that is equivalent to or greater than what a Japanese national would receive for the same position. This requirement is stipulated in the Ordinance for Enforcement of the Immigration Control and Refugee Recognition Act.
Legal Requirements for Intra-Company Transferee Status
- The applicant must have been engaged in activities falling under “Engineer/Specialist in Humanities/International Services” at the overseas parent, branch, or affiliated entity for a continuous period of at least one year prior to the transfer.
- The applicant must receive a salary that is equivalent to or higher than that which would be paid to a Japanese national for comparable work.
Salary Benchmarks and Regional Considerations
If the transferee is from a country where the wage level is higher or roughly equivalent to Japan’s, the salary usually meets the required standard. However, if the transferee is from a country with a significantly lower per capita GDP (e.g., parts of Southeast Asia), the Japanese entity must offer a salary that meets or exceeds the local Japanese industry standards.
For instance, even if the employee earns USD 500–1000 in their home country, when dispatched to Japan, they must receive compensation that is comparable to the starting salary of a Japanese employee in the same industry and region. There is no fixed monetary threshold, but if the salary is below the local norm for entry-level Japanese employees, the visa application may be denied.
Compensation is calculated based on the total amount paid for services rendered over a year, divided by 12 months. It includes bonuses but excludes reimbursements such as commuting, housing, and family allowances (unless taxable).
Because salaries must be assessed in Japanese yen, fluctuations in exchange rates may lower the reported income. Companies paying in local currencies must be mindful of currency depreciation against the yen.
Who Pays the Salary?
From a procedural standpoint, salaries can be paid entirely by the parent company, the Japanese entity, or split between the two. In practice, it is common for the base salary to be paid by the parent company, with additional cost-of-living adjustments (COLA) provided by the Japanese entity.
This mirrors the structure used by major Japanese firms when dispatching staff to high-cost cities like London, where a local adjustment is added to the Tokyo base pay.
When renewing the Intra-Company Transferee visa, proof of income and tax payments must be submitted, typically in the form of resident tax certificates and payment slips, to confirm that the declared salary has been maintained and tax obligations have been fulfilled.
See also: Explanation of Intra-Company Transferee Visa Requirements
For Overseas HR Teams Seeking to Sponsor Japan Work Visas
If you have any concerns regarding salary levels or documentation for your application, please don’t hesitate to consult our office.
About the Author
Masakazu Murai
Mr. Murai previously worked in investment banking at Mitsubishi UFJ Morgan Stanley Securities, a joint venture between Mitsubishi UFJ Financial Group and Morgan Stanley. He provided advisory services on capital strategy and M&A to corporate clients.
While working, he also served as a central executive committee member of the employee union, promoting diversity and improving labor conditions for foreign and female employees. His specialties include visa consulting for foreign nationals and financial consulting.
- Certified Administrative Scrivener (Authorized Immigration Representative)
- Certified Financial Planner (CFP)
- Chartered Member, Securities Analysts Association of Japan