Japan
Australia
Exchange rates: European Central Bank reference rates, 2026-10-23. Assumes the salary is paid evenly each month with no bonus, no dependants, standard deductions only, and tax residence. Japan: Tokyo, Kyokai Kenpo. India: Mumbai, basic pay at 50% of salary, EPF on the statutory wage ceiling. Australia: Sydney, superannuation guarantee at 12%, NSW payroll tax at 5.45% for an employer above the threshold. China: Shanghai. United States: New York City, single filer, federal, state and city income tax. CPF (Singapore), EPF (India) and the housing fund (China) are paid into the employee’s own account and come back to them later. Company benefits, industry rates and local variations are not included.
At three salary levels
| Salary (US$ equivalent) | Japan | Australia |
|---|---|---|
| $60,000 | Cost 1.14× Keeps 73% ¥9,408,202 | Cost 1.18× Keeps 79% A$85,441 |
| $120,000 | Cost 1.10× Keeps 66% ¥18,816,403 | Cost 1.18× Keeps 72% A$170,882 |
| $250,000 | Cost 1.05× Keeps 57% ¥39,200,840 | Cost 1.15× Keeps 63% A$356,004 |
Employment rules compared
| Japan | Australia | |
|---|---|---|
| Statutory annual leave | 10 days after six months, rising to 20; 5 days must be taken | 4 weeks a year from day one (National Employment Standards) |
| Public holidays in 2026 | 18 | 13 (New South Wales, including in-lieu Mondays) |
| Notice of dismissal | 30 days, or pay in lieu | 1–4 weeks by service, plus 1 week if over 45 with 2+ years |
| Severance required by law | None | Redundancy pay of 4–16 weeks by service (employers with 15+ staff) |
| Typical negotiated exit | Commonly 3–6 months’ pay plus unused leave | Statutory redundancy pay plus notice; more under awards or contracts |
| Probation | Commonly 3–6 months; dismissal still needs grounds | Not set by law; unfair-dismissal protection after 6 months (12 in small business) |
| Working hours | 40 a week; overtime capped at 45 a month and 360 a year | 38 a week plus reasonable additional hours |
| How hard is dismissal? | Very hard: needs objectively reasonable grounds | Moderate: unfair-dismissal claims within 21 days, for pay under the high income threshold |
| Women in management (ILO) | 14.5% (2023) | 39.1% (2025) |
Questions
What does a US$120,000 salary cost an employer in Japan and Australia?
With the rates and exchange rates as of October 2026, in Japan (Tokyo, ¥18,816,403) the employer’s total cost is 1.10 times the salary; in Australia (A$170,882) it is 1.18 times. The employee keeps 66% of salary in Japan and 72% in Australia.
Is it cheaper to employ someone in Japan or Australia?
At this salary, the employer’s on-cost is lower in Japan. The ratio changes with pay, though: where contributions are capped, the on-cost falls as a share of salary for high earners. Enter the real salary in the calculator above to compare.
How do notice and severance compare?
Japan: 30 days, or pay in lieu; no severance is required by law, and negotiated exits are commonly 3–6 months’ pay plus unused leave. Australia: notice is 1–4 weeks by service, plus 1 week if over 45 with 2+ years; severance required by law: redundancy pay of 4–16 weeks by service (employers with 15+ staff); typical negotiated exit: statutory redundancy pay plus notice; more under awards or contracts.
Which has more paid leave and public holidays?
Japan: 10 days after six months, rising to 20; 5 days must be taken, and 18 public holidays in 2026. Australia: 4 weeks a year from day one (national employment standards), and 13 public holidays in 2026.
Why are some deductions savings rather than cost?
Singapore’s CPF, India’s EPF and China’s housing provident fund are paid into the employee’s own account and come back to them later, for retirement, housing or medical costs. They reduce take-home pay but work differently from Japan’s social insurance premiums. The calculator shows them separately in the breakdown.
Sources: Japan (Kyokai Kenpo, Japan Pension Service, MHLW, NTA, MIC); Singapore (CPF Board, IRAS, MOM); Australia (ATO, Fair Work Ombudsman, Revenue NSW); India (Income Tax Department, EPFO, ESIC, Ministry of Labour and Employment, Government of Maharashtra); China (Shanghai Human Resources and Social Security Bureau, Shanghai Healthcare Security Bureau, State Taxation Administration); United States (IRS, New York State Department of Taxation and Department of Labor, KFF); women in management (ILOSTAT).
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