Japan
Brazil
Exchange rates: European Central Bank reference rates, 2026-10-23. Japan: Tokyo, Kyokai Kenpo, salary paid evenly each month with no bonus, no dependants. Brazil: A single employee in São Paulo city, no dependants, Brazilian national and tax resident, CLT employment contract, salary paid evenly as 12 monthly payments with no bonus and no PLR. The 13th salary (décimo terceiro) and the one-third vacation bonus (terço de férias) are mandatory in Brazil but are not modelled here, so annual pay and take-home are understated by roughly 1.33 months' salary relative to a CLT employee's real annual compensation. Employee INSS on the progressive 2026 table up to the contribution ceiling (R$8,475.55 a month). Income tax is the monthly withholding (IRRF) for calendar year 2026, annualised: the progressive monthly table less INSS, with the new reduction under Lei 15.270/2025 (no tax up to R$5,000 a month, phased out linearly to R$7,350). Employer side assumes an ordinary company outside Simples Nacional and payroll relief schemes: INSS 20%, RAT 1% (FAP 1.0), third-party contributions 5.8% and FGTS 8%.
At three salary levels
| Salary (US$ equivalent) | Japan | Brazil |
|---|---|---|
| $60,000 | Cost 1.14× Keeps 73% ¥9,408,202 | Cost 1.35× Keeps 73% R$302,787 |
| $120,000 | Cost 1.10× Keeps 66% ¥18,816,403 | Cost 1.35× Keeps 73% R$605,575 |
| $250,000 | Cost 1.05× Keeps 57% ¥39,200,840 | Cost 1.35× Keeps 73% R$1,261,614 |
Employment rules compared
| Japan | Brazil | |
|---|---|---|
| Statutory annual leave | 10 days after six months, rising to 20; 5 days must be taken | 30 calendar days + one-third vacation bonus |
| Public holidays in 2026 | 18 | 13 (São Paulo) |
| Notice of dismissal | 30 days, or pay in lieu | 30 days + 3 per year of service, max 90 |
| Severance required by law | None | No lump sum; 40% FGTS fine on dismissal without cause |
| Typical negotiated exit | Commonly 3–6 months’ pay plus unused leave | No official benchmark |
| Probation | Commonly 3–6 months; dismissal still needs grounds | Max 90 days (contrato de experiência) |
| Working hours | 40 a week; overtime capped at 45 a month and 360 a year | 8/day, 44/week; OT max 2 h/day at +50% |
| How hard is dismissal? | Very hard: needs objectively reasonable grounds | Easy: without cause allowed, at a cost |
| Women in management (ILO) | 14.5% (2023) | 38.7% (2025) |
Questions
What does a US$120,000 salary cost an employer in Japan and Brazil?
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 Brazil (R$605,575) it is 1.35 times. The employee keeps 66% of salary in Japan and 73% in Brazil.
Is it cheaper to employ someone in Japan or Brazil?
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. Brazil: notice is 30 days + 3 per year of service, max 90; severance required by law: no lump sum; 40% fgts fine on dismissal without cause; typical negotiated exit: no official benchmark.
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. Brazil: 30 calendar days + one-third vacation bonus, and 13 public holidays in 2026.
Sources: Japan (Kyokai Kenpo, Japan Pension Service, MHLW, National Tax Agency, MIC). Brazil: every rate and rule is listed with its primary source on Brazil's HR data. Exchange rates: ECB reference rates (2026-10-23); for currencies the ECB does not quote, the central bank's rate.
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