Japan
Canada
Exchange rates: European Central Bank reference rates, 2026-10-23. Japan: Tokyo, Kyokai Kenpo, salary paid evenly each month with no bonus, no dependants. Canada: Single employee in Toronto, Ontario, Canadian tax resident for the full 2026 calendar year (the Canadian tax year), no dependants, salary only paid evenly as monthly pay (no bonus, no RRSP or other deductions), claiming only the basic personal amounts and the Canada employment amount. CPP and EI at the 2026 rates; employer is a large Ontario employer (payroll over $5 million, so no Employer Health Tax exemption). Local resident case; there is no special expatriate regime.
At three salary levels
| Salary (US$ equivalent) | Japan | Canada |
|---|---|---|
| $60,000 | Cost 1.14× Keeps 73% ¥9,408,202 | Cost 1.09× Keeps 75% C$83,972 |
| $120,000 | Cost 1.10× Keeps 66% ¥18,816,403 | Cost 1.06× Keeps 68% C$167,944 |
| $250,000 | Cost 1.05× Keeps 57% ¥39,200,840 | Cost 1.04× Keeps 58% C$349,884 |
Employment rules compared
| Japan | Canada | |
|---|---|---|
| Statutory annual leave | 10 days after six months, rising to 20; 5 days must be taken | 2 weeks (3 weeks from 5 years); vacation pay 4%/6% |
| Public holidays in 2026 | 18 | 9 (Toronto) |
| Notice of dismissal | 30 days, or pay in lieu | ESA 1-8 weeks by service; common-law notice usually longer |
| Severance required by law | None | 1 week per year, max 26 weeks (5+ years, payroll $2.5M+) |
| Typical negotiated exit | Commonly 3–6 months’ pay plus unused leave | No official benchmark; common-law reasonable notice set by courts |
| Probation | Commonly 3–6 months; dismissal still needs grounds | None statutory; no ESA notice in first 3 months |
| Working hours | 40 a week; overtime capped at 45 a month and 360 a year | 8h/day, 48h/week; overtime after 44h at 1.5x |
| How hard is dismissal? | Very hard: needs objectively reasonable grounds | Moderate: no cause needed with notice, but common-law notice is costly |
| Women in management (ILO) | 14.5% (2023) | No ILO data |
Questions
What does a US$120,000 salary cost an employer in Japan and Canada?
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 Canada (C$167,944) it is 1.06 times. The employee keeps 66% of salary in Japan and 68% in Canada.
Is it cheaper to employ someone in Japan or Canada?
At this salary, the employer’s on-cost is lower in Canada. 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. Canada: notice is esa 1-8 weeks by service; common-law notice usually longer; severance required by law: 1 week per year, max 26 weeks (5+ years, payroll $2.5m+); typical negotiated exit: no official benchmark; common-law reasonable notice set by courts.
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. Canada: 2 weeks (3 weeks from 5 years); vacation pay 4%/6%, and 9 public holidays in 2026.
Sources: Japan (Kyokai Kenpo, Japan Pension Service, MHLW, National Tax Agency, MIC). Canada: every rate and rule is listed with its primary source on Canada'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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