Equal pay for dispatched workers: the two methods and the FY2026 general wage levels
Under the Worker Dispatch Act, a dispatch agency must set the pay and conditions of its dispatched workers by one of two methods: comparison with the client's own employees, or a labor management agreement at the agency. The agency decides, but the client company has to supply information and take the rules into account when agreeing a dispatch fee, so it pays to understand both. This article explains the two methods and the general wage levels that apply from April 2026.
Method 1: equal and balanced treatment with the client's employees
Article 30-3 of the act (in Japanese) tells the agency not to set unreasonable differences in base pay, bonuses or any other condition between a dispatched worker and a regular employee of the client doing comparable work (balanced treatment). Where the job content and the scope of changes to duties and assignment are the same, the dispatched worker may not be treated less favorably without a proper reason (equal treatment).
For this to work, the client has to share data. Under Article 26 paragraph 7, before signing a dispatch contract the client must give the agency information on the pay and other conditions of comparable employees for each job the worker will do. Without it the agency may not sign (paragraph 9), and changes must be passed on without delay (paragraph 10).
Method 2: labor management agreement
Article 30-4 lets the agency set conditions through a written agreement with a union representing a majority of its workers, or with a majority representative. The pay rule in that agreement must satisfy two things: pay at least equal to the average wage of general workers doing the same kind of work (the "general wage"), and pay that improves as the worker's job content, results, ability or experience improve.
Two client duties survive regardless of method. Training the client gives its own staff for the work (Article 40 paragraph 2) and access to welfare facilities its staff use (paragraph 3) must be extended to dispatched workers either way. The MHLW's page on the agreement method (in Japanese) explains that the general wage is set each fiscal year by a notice from the Director General of the Employment Security Bureau.
The FY2026 general wage formula
The levels for April 1, 2026 to March 31, 2027 are in the notice dated August 25, 2025 (Shokuhatsu 0825 No. 1, in Japanese). The base pay, bonus and allowance component is calculated as:
base value for the occupation × ability and experience index × regional index
- The base value comes from one of two statistics, converted to an hourly rate including bonus: the Basic Survey on Wage Structure (Attachment 1) or Hello Work job offer statistics (Attachment 2). For FY2026 the all industry and all occupation base values at zero years are 1,442 yen and 1,289 yen respectively.
- The ability and experience index is 100.0 at zero years, 113.8 at one year, 121.8 at two, 124.8 at three, 133.6 at five, 142.7 at ten and 177.4 at twenty.
- The regional index follows the place of work (Attachment 3). With the national figure at 100.0, Kanagawa Prefecture is 110.1, the Hello Work Kawasaki area is 110.7 and Kawasaki Kita is 109.9.
Fractions of a yen are rounded up. If a base value falls below the regional or specified minimum wage, the minimum wage is used as the base value before applying the index.
| Item | FY2026 treatment |
|---|---|
| Commuting allowance | Either reimburse actual cost so the allowance is at least equal to the general level (if a cap brings it below 79 yen an hour, raise it to 79 yen), or pay at least 79 yen an hour |
| Retirement pay | Either compare the agency's retirement plan with the general plan in Attachment 4, add 5 percent of the base pay and bonus component to pay, or enroll in a scheme such as the Smaller Enterprise Retirement Allowance Mutual Aid at 5 percent |
The notice states that FY2026 general wage levels rose at the all industry and all occupation level and that more occupations rose than before. It also says that when a general wage falls, labor and management should negotiate from the previous agreed amount, and that switching statistics in order to cut pay is not allowed.
The FY2027 notice (Shokuhatsu 0828 No. 5, dated August 28, 2026, in Japanese) is already published for April 1, 2027 to March 31, 2028. Among its changes, the hourly commuting figure becomes 67 yen. Agreements renewed for next year will be measured against it.
Where the client company comes in
Whichever method applies, the client provides the information required by Article 26 paragraph 7 before the contract, and must take care that the dispatch fee allows the agency to comply with the law or the agreement (paragraph 11). It is also asked to cooperate with the agency's requests for information on its own employees and on the dispatched worker's performance (Article 40 paragraph 5).
Sincero Global, as the dispatching employer, sets the treatment method and pays the foreign residents we dispatch in line with the law and the annual notice. We ask client companies for the information the law requires before signing. If you want to check how the rules apply to a role you have in mind, reach us by phone at +81 90 7841 8887, by email at info@sinceroglobal.jp, or on LINE.
