Practical job decisionsArticle date Information checked

Does the Offered Salary Include Fixed Overtime? Four Questions Before You Accept

Two offers can show the same monthly total but use different salary structures. If one includes fixed overtime pay, ask for the breakdown before comparing it with another offer. This article focuses on reading that part of an offer, rather than negotiating a higher salary.

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What to establish first

Identify the base pay excluding fixed overtime, the fixed overtime amount, the hours it covers and how additional overtime is paid. A fixed overtime arrangement is not permission for unlimited work. The employer must still manage working hours and pay any additional amount required when actual overtime exceeds the covered amount.

Your confirmation sheet

Scroll the table horizontally to see all columns.

ItemQuestion to confirmKeep this record
Pay without fixed overtimeWhat is the base amount before the fixed overtime component?A clearly separated amount
Covered workWhat hours and types of overtime does the allowance cover?Hours and calculation conditions
Extra paymentHow are amounts exceeding the covered overtime paid?Written additional-payment rule

What to do next

  1. Ask for the four items together, rather than only asking whether the total is correct.
  2. Compare ordinary working hours and fixed overtime separately across offers.
  3. Keep the written reply with the offer and ask again if the figures change.

A question you can use

Please separate the base pay, fixed overtime amount, covered hours and payment for overtime beyond those hours.

Avoid this assumption

Do not assume that a high monthly total means a high base wage. Also, do not assume that covered hours are a guaranteed amount of overtime every month. Ask how actual hours are recorded and how the arrangement works in this job.

Questions and answers

Can overtime exceeding the fixed allowance go unpaid?

A fixed allowance does not remove the obligation to pay the additional amount legally due.

Is every overtime allowance a fixed overtime scheme?

No. Ask what the payment represents and how it is calculated; the label alone is insufficient.

Is job consultation with TGP free?

Job consultation and placement are free for jobseekers. Tree's residence applications are separate services with separate fees; support arrangements and other necessary expenses must be confirmed individually.

TGP provides job placement for foreign residents already living in Japan. We do not currently arrange recruitment from overseas or job placement in the construction sector.

Official sources checked

  1. MHLW: Disclosure of Fixed Overtime Pay
  2. MHLW: Guidelines for Employment Management of Foreign Workers
  3. TreeGlobalPartners: Terms of Use

This guide uses official information retrieved on the stated checking date and practical suggestions for organising a job decision. The checklist and sample wording are not statutory forms. Individual employment, contract and residence questions need appropriate professional or official advice.