Japan
Hungary
Exchange rates: European Central Bank reference rates, 2026-10-23. Japan: Tokyo, Kyokai Kenpo, salary paid evenly each month with no bonus, no dependants. Hungary: Employee in Budapest on a standard employment contract, Hungarian tax resident and national, aged 25 or over (no under-25 exemption), single, no children and not a mother eligible for the new mothers' exemptions, salary only paid evenly as monthly pay (no bonus or benefits), calendar tax year 2026. Hungary has a flat personal income tax of 15% on gross employment income and an employee social security contribution of 18.5% with no ceiling; neither is deductible from the other, and there is no general personal allowance.
At three salary levels
| Salary (US$ equivalent) | Japan | Hungary |
|---|---|---|
| $60,000 | Cost 1.14× Keeps 73% ¥9,408,202 | Cost 1.13× Keeps 66% Ft19,658,537 |
| $120,000 | Cost 1.10× Keeps 66% ¥18,816,403 | Cost 1.13× Keeps 66% Ft39,317,073 |
| $250,000 | Cost 1.05× Keeps 57% ¥39,200,840 | Cost 1.13× Keeps 67% Ft81,910,569 |
Employment rules compared
| Japan | Hungary | |
|---|---|---|
| Statutory annual leave | 10 days after six months, rising to 20; 5 days must be taken | 20 days + up to 10 by age |
| Public holidays in 2026 | 18 | 11 (Budapest) |
| Notice of dismissal | 30 days, or pay in lieu | 30-90 days by service |
| Severance required by law | None | After 3 years: 1-6 months' pay |
| 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 3 months (6 by collective agreement) |
| Working hours | 40 a week; overtime capped at 45 a month and 360 a year | 40 h/week; max 48 average |
| How hard is dismissal? | Very hard: needs objectively reasonable grounds | Moderate: genuine reason required |
| Women in management (ILO) | 14.5% (2023) | 42.2% (2024) |
Questions
What does a US$120,000 salary cost an employer in Japan and Hungary?
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 Hungary (Ft39,317,073) it is 1.13 times. The employee keeps 66% of salary in Japan and 66% in Hungary.
Is it cheaper to employ someone in Japan or Hungary?
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. Hungary: notice is 30-90 days by service; severance required by law: after 3 years: 1-6 months' pay; 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. Hungary: 20 days + up to 10 by age, and 11 public holidays in 2026.
Sources: Japan (Kyokai Kenpo, Japan Pension Service, MHLW, National Tax Agency, MIC). Hungary: every rate and rule is listed with its primary source on Hungary'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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