Japan
Israel
Exchange rates: European Central Bank reference rates, 2026-10-23. Japan: Tokyo, Kyokai Kenpo, salary paid evenly each month with no bonus, no dependants. Israel: Employee in Tel Aviv, Israeli resident and citizen, single man with no children (2.25 credit points; a woman gets 2.75, i.e. ILS 1,452 a year less tax), not a new immigrant or returning resident and not in a tax-benefit locality, no reserve-duty or degree credits, salary only paid evenly as monthly pay, calendar tax year 2026. Income tax with the 2026 brackets as widened retroactively from 1 January 2026 by Amendment 288 of the Income Tax Ordinance; National Insurance and health tax at the 2026 rates and ceilings; mandatory pension under the general extension order at the statutory minimum (employee 6%, employer 6.5% plus 6% severance) on pay up to the national average wage, with the 35% tax credit on the employee's deposit.
At three salary levels
| Salary (US$ equivalent) | Japan | Israel |
|---|---|---|
| $60,000 | Cost 1.14× Keeps 73% ¥9,408,202 | Cost 1.17× Keeps 77% ₪187,290 |
| $120,000 | Cost 1.10× Keeps 66% ¥18,816,403 | Cost 1.12× Keeps 67% ₪374,581 |
| $250,000 | Cost 1.05× Keeps 57% ¥39,200,840 | Cost 1.08× Keeps 59% ₪780,376 |
Employment rules compared
| Japan | Israel | |
|---|---|---|
| Statutory annual leave | 10 days after six months, rising to 20; 5 days must be taken | 12 working days (5-day week), rising with service |
| Public holidays in 2026 | 18 | 9 (Tel Aviv) |
| Notice of dismissal | 30 days, or pay in lieu | Up to 1 month by service |
| Severance required by law | None | 1 month/year (often via 8.33% pension) |
| Typical negotiated exit | Commonly 3–6 months’ pay plus unused leave | No official benchmark |
| Probation | Commonly 3–6 months; dismissal still needs grounds | None by law; 3-6 months by contract |
| Working hours | 40 a week; overtime capped at 45 a month and 360 a year | 42 h/week |
| How hard is dismissal? | Very hard: needs objectively reasonable grounds | Moderate: hearing and good faith required |
| Women in management (ILO) | 14.5% (2023) | 32.8% (2024) |
Questions
What does a US$120,000 salary cost an employer in Japan and Israel?
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 Israel (₪374,581) it is 1.12 times. The employee keeps 66% of salary in Japan and 67% in Israel.
Is it cheaper to employ someone in Japan or Israel?
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. Israel: notice is up to 1 month by service; severance required by law: 1 month/year (often via 8.33% pension); 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. Israel: 12 working days (5-day week), rising with service, and 9 public holidays in 2026.
Sources: Japan (Kyokai Kenpo, Japan Pension Service, MHLW, National Tax Agency, MIC). Israel: every rate and rule is listed with its primary source on Israel'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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