Japan
Indonesia
Exchange rates: European Central Bank reference rates, 2026-10-23. Japan: Tokyo, Kyokai Kenpo, salary paid evenly each month with no bonus, no dependants. Indonesia: A single permanent employee (pegawai tetap) in Jakarta, no dependants (PTKP status TK/0), Indonesian national and tax resident, salary paid evenly as 12 monthly payments with no bonus and no THR, standard deductions only. Registered with BPJS Kesehatan and BPJS Ketenagakerjaan (JHT, JP, JKK, JKM) at an office (very-low-risk, 0.24%) JKK rate. Income tax is the annual PPh 21 liability for calendar 2026 under the UU HPP rates, computed with the PMK 168/2023 year-end method (monthly TER withholding sums to the same annual amount). Contribution caps as of 2026 (JP cap raised 1 March 2026).
At three salary levels
| Salary (US$ equivalent) | Japan | Indonesia |
|---|---|---|
| $60,000 | Cost 1.14× Keeps 73% ¥9,408,202 | Cost 1.05× Keeps 75% Rp1,086,467,971 |
| $120,000 | Cost 1.10× Keeps 66% ¥18,816,403 | Cost 1.05× Keeps 72% Rp2,172,935,942 |
| $250,000 | Cost 1.05× Keeps 57% ¥39,200,840 | Cost 1.04× Keeps 70% Rp4,526,949,879 |
Employment rules compared
| Japan | Indonesia | |
|---|---|---|
| Statutory annual leave | 10 days after six months, rising to 20; 5 days must be taken | 12 working days after 12 months |
| Public holidays in 2026 | 18 | 17 (Jakarta) |
| Notice of dismissal | 30 days, or pay in lieu | 14 working days' written notice of termination |
| Severance required by law | None | Up to 9 months + up to 10 months long-service pay |
| Typical negotiated exit | Commonly 3–6 months’ pay plus unused leave | No official benchmark |
| Probation | Commonly 3–6 months; dismissal still needs grounds | Max 3 months, permanent contracts only |
| Working hours | 40 a week; overtime capped at 45 a month and 360 a year | 40/week; OT max 4 h/day, 18 h/week |
| How hard is dismissal? | Very hard: needs objectively reasonable grounds | Hard: statutory grounds, formula pay, court if contested |
| Women in management (ILO) | 14.5% (2023) | 25.6% (2024) |
Questions
What does a US$120,000 salary cost an employer in Japan and Indonesia?
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 Indonesia (Rp2,172,935,942) it is 1.05 times. The employee keeps 66% of salary in Japan and 72% in Indonesia.
Is it cheaper to employ someone in Japan or Indonesia?
At this salary, the employer’s on-cost is lower in Indonesia. 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. Indonesia: notice is 14 working days' written notice of termination; severance required by law: up to 9 months + up to 10 months long-service 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. Indonesia: 12 working days after 12 months, and 17 public holidays in 2026.
Sources: Japan (Kyokai Kenpo, Japan Pension Service, MHLW, National Tax Agency, MIC). Indonesia: every rate and rule is listed with its primary source on Indonesia'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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