Japan
Germany
Exchange rates: European Central Bank reference rates, 2026-10-23. Japan: Tokyo, Kyokai Kenpo, salary paid evenly each month with no bonus, no dependants. Germany: Employee in Berlin, German tax resident and a local national (no expatriate regime), aged 30, single and childless (tax class I), not a church member, salary only paid evenly as monthly pay (no bonus), calendar year 2026. Statutory health insurance (GKV) at the official average additional contribution rate, statutory pension, unemployment and long-term-care insurance. Tax shown is the wage tax (Lohnsteuer) withheld under the official 2026 programme flowchart, with the standard employee allowances; a year-end tax return could differ slightly.
At three salary levels
| Salary (US$ equivalent) | Japan | Germany |
|---|---|---|
| $60,000 | Cost 1.14× Keeps 73% ¥9,408,202 | Cost 1.21× Keeps 64% €53,605 |
| $120,000 | Cost 1.10× Keeps 66% ¥18,816,403 | Cost 1.17× Keeps 58% €107,210 |
| $250,000 | Cost 1.05× Keeps 57% ¥39,200,840 | Cost 1.08× Keeps 56% €223,354 |
Employment rules compared
| Japan | Germany | |
|---|---|---|
| Statutory annual leave | 10 days after six months, rising to 20; 5 days must be taken | 20 days (5-day week); 25-30 common |
| Public holidays in 2026 | 18 | 10 (Berlin) |
| Notice of dismissal | 30 days, or pay in lieu | 4 weeks, rising to 7 months with service |
| Severance required by law | None | None by law; 0.5 month/year offer option (§1a KSchG) |
| Typical negotiated exit | Commonly 3–6 months’ pay plus unused leave | Settlements often 0.5-1 month's pay per year of service |
| Probation | Commonly 3–6 months; dismissal still needs grounds | Up to 6 months, 2 weeks' notice |
| Working hours | 40 a week; overtime capped at 45 a month and 360 a year | 8 h/day (max 10), 48 h/week |
| How hard is dismissal? | Very hard: needs objectively reasonable grounds | Hard: social justification after 6 months |
| Women in management (ILO) | 14.5% (2023) | 27.7% (2024) |
Questions
What does a US$120,000 salary cost an employer in Japan and Germany?
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 Germany (€107,210) it is 1.17 times. The employee keeps 66% of salary in Japan and 58% in Germany.
Is it cheaper to employ someone in Japan or Germany?
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. Germany: notice is 4 weeks, rising to 7 months with service; severance required by law: none by law; 0.5 month/year offer option (§1a kschg); typical negotiated exit: settlements often 0.5-1 month's pay per year of service.
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. Germany: 20 days (5-day week); 25-30 common, and 10 public holidays in 2026.
Sources: Japan (Kyokai Kenpo, Japan Pension Service, MHLW, National Tax Agency, MIC). Germany: every rate and rule is listed with its primary source on Germany'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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