Costs and Compensation for Specified Skilled Worker | The Full Picture of Company-Borne and Worker-Borne Costs

Introduction

For companies considering hiring Specified Skilled Worker foreign nationals, “how much will it cost?” is one of the most important concerns. In this article, we set out the costs borne by companies and by the foreign nationals themselves, along with the characteristics of each field.

Fundamental premise: Collecting unjust fees from the foreign national is prohibited by law. Collecting security deposits and setting penalty clauses are likewise not permitted.

Costs Borne by the Worker

The main costs borne by the foreign national in obtaining the Specified Skilled Worker residence status are as follows.

Cost Item	Approximate Amount	Notes
Skills test fee	Around ¥3,000–¥7,000	Varies by field and test
Japanese language test fee (JLPT)	¥7,500	For taking the test in Japan
Japanese language test fee (JFT-Basic)	Around ¥7,000	Varies by country and venue
Passport acquisition cost	Varies by home country	Borne by the worker
Travel costs (airfare)	Around ¥50,000–¥150,000	Varies by point of departure
Residence status application fee	¥4,000	For a change of status of residence
Health examination cost	Around ¥5,000–¥15,000	Sometimes borne by the accepting company

Caution: Where the worker comes to Japan through an overseas sending organization, fees payable to that organization may arise. However, the collection of exorbitant fees is prohibited.

Costs Borne by the Company

The costs borne by the accepting company are as follows.

Cost Item	Approximate Amount	Notes
Residence status application cost (Administrative Scrivener fee)	Around ¥100,000–¥200,000	Varies between certification and change
Outsourcing fee to a Registered Support Organization	¥20,000–¥40,000 per month per person	Outsourcing the implementation of the support plan
Cost of securing housing	Initial cost of around ¥100,000–¥300,000	Deposit, key money, furniture and appliances, etc.
Cost of the life orientation	Often included in the Registered Support Organization outsourcing fee	Interpretation costs, etc.
Cost of regular interviews	Often included in the Registered Support Organization outsourcing fee	Quarterly interviews
Return travel costs (where the worker cannot bear them)	Around ¥50,000–¥150,000	A statutory obligation

Approximate First-Year Costs (per person)

Item	Amount
Residence status application related	¥150,000–¥250,000
Registered Support Organization outsourcing (annual)	¥240,000–¥480,000
Housing related	¥150,000–¥350,000
Other (health examination, etc.)	¥30,000–¥100,000
Total (guideline)	¥570,000–¥1,180,000

Caution: The above are general guidelines only. They vary considerably depending on region, field, and individual circumstances.

Standards for Compensation

Compensation for Specified Skilled Worker foreign nationals must be equal to or higher than that of Japanese nationals.

Criterion	Content
Comparison with Japanese nationals doing the same work	If there are Japanese nationals engaged in the same work, compensation must be equal to or higher than theirs
Where wage rules exist	Equal or higher based on the rules, taking into account years of experience and other factors
Regional wage levels	Wage levels in the same industry in the area are also used as a reference
At or above the minimum wage	It goes without saying that falling below the minimum wage is not permitted

Reference information: The average salary level for Specified Skilled Worker foreign nationals is around ¥170,000–¥250,000 per month (gross pay, depending on region and field).

Additional Costs in the Construction Field

The construction field incurs specific costs not found in other fields.

Cost Item	Approximate Amount	Notes
JAC supporting member annual fee	¥240,000/year	Borne by the accepting company
CCUS business operator registration fee	¥0–¥2,400,000	Varies by capital
CCUS skilled worker registration fee	¥2,500 per person	For the simplified type
Plan certification application to the Ministry of Land, Infrastructure, Transport and Tourism	Often included in the Administrative Scrivener fee

Caution: Because monthly salary payment is mandatory in the construction field, labor costs tend to be higher compared with site workers paid on a daily wage basis.

Cost Comparison: Specified Skilled Worker vs. Technical Intern Training

Cost Item	Specified Skilled Worker	Technical Intern Training
Supervising organization fee	None	¥30,000–¥50,000 per month per person
Registered Support Organization fee	¥20,000–¥40,000 per month per person	None
Sending organization fee	Borne by the worker (as a general rule)	Sometimes borne by the company
Pre-entry training cost	None	Sometimes borne by the company
Compensation level	Equal to or higher than Japanese nationals	At or above the minimum wage
Total first-year cost	Tends to be somewhat lower	Tends to be somewhat higher

Points for Reducing Costs

1. Provide support in-house — You can cut the outsourcing fee to a Registered Support Organization. However, this requires foreign language capability and a properly established support structure.
2. Transition those who have completed Technical Intern Training — As they are already in Japan, no travel costs arise, and application costs are also reduced through test exemptions.
3. Make use of company housing and dormitories — This can greatly reduce the cost of securing housing.
4. Accept several workers at the same time — Fixed costs per person (Administrative Scrivener fees, etc.) can be spread out.
5. Think long term — Looking ahead to a transition to (ii), having workers stay active over the long term allows you to recoup recruitment and training costs.

Reference: Immigration Services Agency of Japan, “Specified Skilled Worker Guidebook” https://www.moj.go.jp/content/001326468.pdf

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