Japan
Italy
Exchange rates: European Central Bank reference rates, 2026-10-23. Japan: Tokyo, Kyokai Kenpo, salary paid evenly each month with no bonus, no dependants. Italy: Single employee in Milan, Italian tax resident for the full 2026 calendar year, no dependants, open-ended contract with a private commerce/services company, salary only (annual gross including the 13th/14th month, paid evenly), first insured after 1995, no bonus or other income, standard credits only. Local resident case; the impatriati regime is not modelled.
At three salary levels
| Salary (US$ equivalent) | Japan | Italy |
|---|---|---|
| $60,000 | Cost 1.14× Keeps 73% ¥9,408,202 | Cost 1.32× Keeps 64% €53,605 |
| $120,000 | Cost 1.10× Keeps 66% ¥18,816,403 | Cost 1.32× Keeps 57% €107,210 |
| $250,000 | Cost 1.05× Keeps 57% ¥39,200,840 | Cost 1.21× Keeps 55% €223,354 |
Employment rules compared
| Japan | Italy | |
|---|---|---|
| Statutory annual leave | 10 days after six months, rising to 20; 5 days must be taken | 4 weeks minimum, plus CCNL leave hours |
| Public holidays in 2026 | 18 | 14 (Milan) |
| Notice of dismissal | 30 days, or pay in lieu | Set by CCNL (about 15 days to 4 months) |
| Severance required by law | None | TFR on any exit; no statutory redundancy pay |
| Typical negotiated exit | Commonly 3–6 months’ pay plus unused leave | No official benchmark; negotiated incentive plus TFR |
| Probation | Commonly 3–6 months; dismissal still needs grounds | Up to 6 months, in writing |
| Working hours | 40 a week; overtime capped at 45 a month and 360 a year | 40h/week; max 48h average |
| How hard is dismissal? | Very hard: needs objectively reasonable grounds | Hard: unjustified dismissal costs 6-36 months' pay |
| Women in management (ILO) | 14.5% (2023) | 25.3% (2024) |
Questions
What does a US$120,000 salary cost an employer in Japan and Italy?
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 Italy (€107,210) it is 1.32 times. The employee keeps 66% of salary in Japan and 57% in Italy.
Is it cheaper to employ someone in Japan or Italy?
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. Italy: notice is set by ccnl (about 15 days to 4 months); severance required by law: tfr on any exit; no statutory redundancy pay; typical negotiated exit: no official benchmark; negotiated incentive plus tfr.
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. Italy: 4 weeks minimum, plus ccnl leave hours, and 14 public holidays in 2026.
Sources: Japan (Kyokai Kenpo, Japan Pension Service, MHLW, National Tax Agency, MIC). Italy: every rate and rule is listed with its primary source on Italy'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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