Dismissal Notice Allowance in Japan: Days, Average Wages, and Payment

Thirty days' notice or an allowance for the shortfall

An employer generally must give at least 30 days' advance notice of dismissal or pay at least 30 days of average wages as a dismissal notice allowance. Notice and payment can be combined.

Count calendar days, including weekends and days off, rather than scheduled working days. Exclude the day notice was given and count from the following day through the dismissal date. Sufficient notice does not remove separate obligations such as unpaid wages.

Average wages are not simply monthly salary divided by 30

The basic calculation divides the relevant gross wages for the preceding three months by the calendar days in that period. For dismissal notice allowance, the reference event is generally the date notice is given. If there is a wage closing date, use the immediately preceding closing date to establish the three-month period.

Check wages before deductions, including relevant regular allowances and overtime pay. Extraordinary payments and bonuses paid at intervals longer than three months are treated separately. Some periods and associated wages must be excluded, including qualifying absence for occupational injury, maternity leave, and childcare or family-care leave. Employment lasting less than three months also requires an adjusted calculation.

Check the minimum guarantee for hourly and daily pay

For hourly, daily, piece-rate, and similar pay, check the minimum guarantee based on relevant wages divided by actual working days, multiplied by 60%, as well as the basic calculation. Mixed monthly and hourly pay requires a different breakdown; ask the employer to show it.

The 60% figure concerns the minimum guarantee when determining average wages. It does not mean dismissal notice allowance is always 60% of wages.

A calculation with matching dates and amounts

Suppose notice is given on April 1, 2026, and employment ends at the end of April 21. The employee receives monthly pay with a month-end wage closing date. Relevant wages from January 1 through March 31 total ¥900,000 over 90 calendar days, with no excluded periods or wage adjustments.

1. Average daily wages: ¥900,000 ÷ 90 = ¥10,000.
2. Notice period: April 2 through April 21 = 20 days.
3. Shortfall: 30 minus 20 = 10 days.
4. Dismissal notice allowance: ¥10,000 × 10 = ¥100,000.

With the same average wages, immediate dismissal without notice would require ¥10,000 × 30 = ¥300,000. For immediate dismissal, the allowance generally must be paid when dismissal is communicated; the next ordinary payday is not automatically an acceptable payment date.

Exceptions for probation and certain short contracts

The Labour Standards Act contains notice exceptions for daily hires, workers hired for a fixed term of no more than two months, seasonal workers hired for no more than four months, and employees on probation. Those exceptions change when employment continues beyond the relevant limit: more than one month for daily hires, beyond the specified short contract period, or more than 14 days of continuous employment during probation.

Probation therefore does not allow notice-free dismissal for several months. An exception from notice requirements also does not determine whether dismissal itself is valid. See the guide to refusal of regular appointment during probation for that separate question.

Omitting notice because unavoidable events make business continuation impossible, or because the dismissal is attributable to the worker, requires recognition by the head of the Labour Standards Inspection Office. Financial difficulty alone, or the employer simply declaring that misconduct occurred, does not automatically remove the allowance obligation.

Ask for a written breakdown and keep evidence

Confirm the notice date, dismissal date, reason, reference wage period, gross wages, calendar days, average wage calculation, notice days, shortfall, amount, and payment date. A written request can be simple:

“Please provide a written breakdown of the dismissal notice allowance, including the wage reference period, total relevant wages, day counts, average wage calculation, notice period, payment amount, and payment date.”

Keep the employment terms, payslips, attendance records, and messages or emails notifying dismissal. The retirement certificate guide explains relevant certificates and requesting reasons for leaving.

Agreed resignation after an employer's suggestion, or expiry and non-renewal of a fixed-term contract, is not automatically treated in the same way as dismissal. Avoid signing a resignation document without understanding its meaning. Record your own intentions separately from the employer's statements. Paying notice allowance does not by itself make a dismissal legally valid.

For unpaid allowance and other Labour Standards Act issues, consult a Labour Standards Inspection Office. A General Labour Consultation Corner can help with employment disputes, including questions about dismissal validity. After leaving, also check the separate guide to employment separation documents for the next administrative steps.

_{Sources: MHLW: Notice periods and payment timing · MHLW: Dismissal notice and exceptions · Kanagawa Labour Bureau: Average wages · MHLW: Employment termination rules}