Japan
Estonia
Exchange rates: European Central Bank reference rates, 2026-10-23. Japan: Tokyo, Kyokai Kenpo, salary paid evenly each month with no bonus, no dependants. Estonia: Employee in Tallinn, Estonian tax resident and an Estonian national, below pensionable age, single with no children, salary only paid evenly as monthly pay (no bonus or fringe benefits), calendar tax year 2026. The employee has applied to the employer for the full basic exemption (€700 a month) and is in the mandatory funded pension (II pillar) at the default 2% rate. Income tax 22% on pay after the basic exemption and the employee's unemployment insurance and funded pension contributions. Employer pays social tax 33% and unemployment insurance 0.8%.
At three salary levels
| Salary (US$ equivalent) | Japan | Estonia |
|---|---|---|
| $60,000 | Cost 1.14× Keeps 73% ¥9,408,202 | Cost 1.34× Keeps 79% €53,605 |
| $120,000 | Cost 1.10× Keeps 66% ¥18,816,403 | Cost 1.34× Keeps 77% €107,210 |
| $250,000 | Cost 1.05× Keeps 57% ¥39,200,840 | Cost 1.34× Keeps 76% €223,354 |
Employment rules compared
| Japan | Estonia | |
|---|---|---|
| Statutory annual leave | 10 days after six months, rising to 20; 5 days must be taken | 28 calendar days |
| Public holidays in 2026 | 18 | 12 (Tallinn) |
| Notice of dismissal | 30 days, or pay in lieu | 15-90 days by service (employer); 30 days (employee) |
| Severance required by law | None | Redundancy: 1 month + 1-2 months from insurance fund after 5 years |
| Typical negotiated exit | Commonly 3–6 months’ pay plus unused leave | No official benchmark |
| Probation | Commonly 3–6 months; dismissal still needs grounds | Up to 4 months |
| Working hours | 40 a week; overtime capped at 45 a month and 360 a year | 40 h/week; max 48 h average |
| How hard is dismissal? | Very hard: needs objectively reasonable grounds | Moderate: good reason or redundancy required |
| Women in management (ILO) | 14.5% (2023) | 36% (2024) |
Questions
What does a US$120,000 salary cost an employer in Japan and Estonia?
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 Estonia (€107,210) it is 1.34 times. The employee keeps 66% of salary in Japan and 77% in Estonia.
Is it cheaper to employ someone in Japan or Estonia?
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. Estonia: notice is 15-90 days by service (employer); 30 days (employee); severance required by law: redundancy: 1 month + 1-2 months from insurance fund after 5 years; 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. Estonia: 28 calendar days, and 12 public holidays in 2026.
Sources: Japan (Kyokai Kenpo, Japan Pension Service, MHLW, National Tax Agency, MIC). Estonia: every rate and rule is listed with its primary source on Estonia's HR data. Exchange rates: ECB reference rates (2026-10-23); for currencies the ECB does not quote, the central bank's rate.
Spotted an error or a newer figure? Report a correction. We check every report against the source and reply within ten business days.