Japan
Lithuania
Exchange rates: European Central Bank reference rates, 2026-10-23. Japan: Tokyo, Kyokai Kenpo, salary paid evenly each month with no bonus, no dependants. Lithuania: Employee in Vilnius, Lithuanian permanent resident and national, single with no children, full participation capacity, permanent (open-ended) employment contract, salary only paid evenly as monthly pay (no bonus), calendar tax year 2026, not in the optional additional 3% pension accumulation. Personal income tax (GPM) at the 2026 progressive rates (20% / 25% / 32%) after the non-taxable amount (NPD); State social insurance (VSD) and compulsory health insurance (PSD) at the 2026 employee rates; employer contributions for an open-ended contract in insurer group I.
At three salary levels
| Salary (US$ equivalent) | Japan | Lithuania |
|---|---|---|
| $60,000 | Cost 1.14× Keeps 73% ¥9,408,202 | Cost 1.02× Keeps 60% €53,605 |
| $120,000 | Cost 1.10× Keeps 66% ¥18,816,403 | Cost 1.02× Keeps 59% €107,210 |
| $250,000 | Cost 1.05× Keeps 57% ¥39,200,840 | Cost 1.02× Keeps 59% €223,354 |
Employment rules compared
| Japan | Lithuania | |
|---|---|---|
| Statutory annual leave | 10 days after six months, rising to 20; 5 days must be taken | 20 working days |
| Public holidays in 2026 | 18 | 16 (Vilnius) |
| Notice of dismissal | 30 days, or pay in lieu | 1 month (2 weeks if under 1 year); employee 20 days |
| Severance required by law | None | 2 months' pay (0.5 if under 1 year) + 1-3 months from fund after 5 years |
| Typical negotiated exit | Commonly 3–6 months’ pay plus unused leave | Employer's-will exit: at least 6 months' pay (art. 59) |
| Probation | Commonly 3–6 months; dismissal still needs grounds | Up to 3 months (6 if pay ≥ 2x average) |
| Working hours | 40 a week; overtime capped at 45 a month and 360 a year | 40 h/week; max 48 h average |
| How hard is dismissal? | Very hard: needs objectively reasonable grounds | Moderate: listed reasons, or employer's-will exit at 6+ months' pay |
| Women in management (ILO) | 14.5% (2023) | 37.4% (2024) |
Questions
What does a US$120,000 salary cost an employer in Japan and Lithuania?
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 Lithuania (€107,210) it is 1.02 times. The employee keeps 66% of salary in Japan and 59% in Lithuania.
Is it cheaper to employ someone in Japan or Lithuania?
At this salary, the employer’s on-cost is lower in Lithuania. 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. Lithuania: notice is 1 month (2 weeks if under 1 year); employee 20 days; severance required by law: 2 months' pay (0.5 if under 1 year) + 1-3 months from fund after 5 years; typical negotiated exit: employer's-will exit: at least 6 months' pay (art. 59).
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. Lithuania: 20 working days, and 16 public holidays in 2026.
Sources: Japan (Kyokai Kenpo, Japan Pension Service, MHLW, National Tax Agency, MIC). Lithuania: every rate and rule is listed with its primary source on Lithuania'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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