Japan
Hong Kong
Exchange rates: European Central Bank reference rates, 2026-10-23. Japan: Tokyo, Kyokai Kenpo, salary paid evenly each month with no bonus, no dependants. Hong Kong: Single employee, no dependants, Hong Kong tax resident, monthly salary paid evenly over the year of assessment 2026/27 (1 April 2026 to 31 March 2027), no bonus, no other income, only the basic allowance and the MPF mandatory-contribution deduction. Salaries tax computed at progressive rates (the standard rate is lower only above about HK$2.15M a year; see notes). Employee is a member of an MPF scheme (local hire; expatriates covered by an overseas scheme may be exempt from MPF). Salaries tax and MPF are the same for local and expatriate employees; there is no separate expatriate regime.
At three salary levels
| Salary (US$ equivalent) | Japan | Hong Kong |
|---|---|---|
| $60,000 | Cost 1.14× Keeps 73% ¥9,408,202 | Cost 1.04× Keeps 89% HK$470,614 |
| $120,000 | Cost 1.10× Keeps 66% ¥18,816,403 | Cost 1.02× Keeps 86% HK$941,228 |
| $250,000 | Cost 1.05× Keeps 57% ¥39,200,840 | Cost 1.01× Keeps 84% HK$1,960,891 |
Employment rules compared
| Japan | Hong Kong | |
|---|---|---|
| Statutory annual leave | 10 days after six months, rising to 20; 5 days must be taken | 7-14 days by service (7 for first 2 years) |
| Public holidays in 2026 | 18 | 17 (Hong Kong) |
| Notice of dismissal | 30 days, or pay in lieu | Per contract, min 7 days; 1 month if silent |
| Severance required by law | None | 2/3 month's pay (max HK$15,000) per year; cap HK$390,000; 24 months (redundancy) / 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 | Contractual; no statutory length |
| Working hours | 40 a week; overtime capped at 45 a month and 360 a year | No statutory maximum or overtime premium |
| How hard is dismissal? | Very hard: needs objectively reasonable grounds | Easy: notice or pay in lieu, no reason needed; claims only after 24 months |
| Women in management (ILO) | 14.5% (2023) | 38.5% (2025) |
Questions
What does a US$120,000 salary cost an employer in Japan and Hong Kong?
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 Hong Kong (HK$941,228) it is 1.02 times. The employee keeps 66% of salary in Japan and 86% in Hong Kong.
Is it cheaper to employ someone in Japan or Hong Kong?
At this salary, the employer’s on-cost is lower in Hong Kong. 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. Hong Kong: notice is per contract, min 7 days; 1 month if silent; severance required by law: 2/3 month's pay (max hk$15,000) per year; cap hk$390,000; 24 months (redundancy) / 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. Hong Kong: 7-14 days by service (7 for first 2 years), and 17 public holidays in 2026.
Sources: Japan (Kyokai Kenpo, Japan Pension Service, MHLW, National Tax Agency, MIC). Hong Kong: every rate and rule is listed with its primary source on Hong Kong'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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