Japan
Chile
Exchange rates: European Central Bank reference rates, 2026-10-23. Japan: Tokyo, Kyokai Kenpo, salary paid evenly each month with no bonus, no dependants. Chile: Employee in Santiago, Chilean national and tax resident, single with no dependants, indefinite contract, salary only paid evenly as monthly pay (no gratificación, bonus or benefits), October 2026 rates annualised. Pension: AFP system, 10% plus the simple average of the seven AFPs' commissions (1.1143%); health: Fonasa 7% (an Isapre plan would cost at least 7%); unemployment insurance (AFC) 0.6%. Contribution caps of 90 UF and 135.2 UF a month converted at the UF of 31 October 2026 (CLP 41,247.63), the value used for October 2026 pay. Impuesto único de segunda categoría from the SII table for October 2026 (UTM CLP 72,151), applied monthly; the UTM and UF move monthly, so peso thresholds drift by about 3%–4% a year.
At three salary levels
| Salary (US$ equivalent) | Japan | Chile |
|---|---|---|
| $60,000 | Cost 1.14× Keeps 73% ¥9,408,202 | Cost 1.07× Keeps 81% CLP$59,355,133 |
| $120,000 | Cost 1.10× Keeps 66% ¥18,816,403 | Cost 1.04× Keeps 77% CLP$118,710,265 |
| $250,000 | Cost 1.05× Keeps 57% ¥39,200,840 | Cost 1.02× Keeps 71% CLP$247,313,053 |
Employment rules compared
| Japan | Chile | |
|---|---|---|
| Statutory annual leave | 10 days after six months, rising to 20; 5 days must be taken | 15 working days |
| Public holidays in 2026 | 18 | 16 (Santiago) |
| Notice of dismissal | 30 days, or pay in lieu | 30 days for company-needs dismissal |
| Severance required by law | None | 30 days/year, max 11 years (90 UF cap) |
| Typical negotiated exit | Commonly 3–6 months’ pay plus unused leave | No official benchmark |
| Probation | Commonly 3–6 months; dismissal still needs grounds | None by law; fixed-term first contract common |
| Working hours | 40 a week; overtime capped at 45 a month and 360 a year | 42 h/week (from 26 Apr 2026) |
| How hard is dismissal? | Very hard: needs objectively reasonable grounds | Moderate: statutory grounds; company needs with severance |
| Women in management (ILO) | 14.5% (2023) | 31.6% (2022) |
Questions
What does a US$120,000 salary cost an employer in Japan and Chile?
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 Chile (CLP$118,710,265) it is 1.04 times. The employee keeps 66% of salary in Japan and 77% in Chile.
Is it cheaper to employ someone in Japan or Chile?
At this salary, the employer’s on-cost is lower in Chile. 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. Chile: notice is 30 days for company-needs dismissal; severance required by law: 30 days/year, max 11 years (90 uf cap); 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. Chile: 15 working days, and 16 public holidays in 2026.
Sources: Japan (Kyokai Kenpo, Japan Pension Service, MHLW, National Tax Agency, MIC). Chile: every rate and rule is listed with its primary source on Chile'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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