Japan
Malaysia
Exchange rates: European Central Bank reference rates, 2026-10-23. Japan: Tokyo, Kyokai Kenpo, salary paid evenly each month with no bonus, no dependants. Malaysia: A single Malaysian citizen under 60, no dependants, tax resident, working in Kuala Lumpur, salary paid evenly over 12 months, no bonus, only the automatic reliefs (individual RM9,000, EPF up to RM4,000, SOCSO/EIS up to RM350). Statutory EPF rate (11% employee); SOCSO first category (Employment Injury + Invalidity) and EIS. Employer is registered with HRD Corp because it has 10 or more Malaysian employees (1% levy). Employer EPF modelled at 12%, the rate for monthly wages above RM5,000 (all example salaries are above that). Year of assessment 2026 = calendar year 2026.
At three salary levels
| Salary (US$ equivalent) | Japan | Malaysia |
|---|---|---|
| $60,000 | Cost 1.14× Keeps 73% ¥9,408,202 | Cost 1.14× Keeps 72% RM245,130 |
| $120,000 | Cost 1.10× Keeps 66% ¥18,816,403 | Cost 1.13× Keeps 68% RM490,260 |
| $250,000 | Cost 1.05× Keeps 57% ¥39,200,840 | Cost 1.13× Keeps 64% RM1,021,375 |
Employment rules compared
| Japan | Malaysia | |
|---|---|---|
| Statutory annual leave | 10 days after six months, rising to 20; 5 days must be taken | 8 / 12 / 16 days by service (<2 / 2-5 / 5+ years) |
| Public holidays in 2026 | 18 | 11 (Kuala Lumpur) |
| Notice of dismissal | 30 days, or pay in lieu | Contract; default 4 / 6 / 8 weeks by service |
| Severance required by law | None | None by statute above RM4,000/month; 10-20 days' pay per year at or below |
| Typical negotiated exit | Commonly 3–6 months’ pay plus unused leave | No official benchmark |
| Probation | Commonly 3–6 months; dismissal still needs grounds | Not statutory; 3-6 months by contract |
| Working hours | 40 a week; overtime capped at 45 a month and 360 a year | 45 hours a week, 8 a day |
| How hard is dismissal? | Very hard: needs objectively reasonable grounds | Hard: just cause needed; Industrial Court can reinstate or award up to 24 months' back wages |
| Women in management (ILO) | 14.5% (2023) | 22.2% (2014) |
Questions
What does a US$120,000 salary cost an employer in Japan and Malaysia?
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 Malaysia (RM490,260) it is 1.13 times. The employee keeps 66% of salary in Japan and 68% in Malaysia.
Is it cheaper to employ someone in Japan or Malaysia?
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. Malaysia: notice is contract; default 4 / 6 / 8 weeks by service; severance required by law: none by statute above rm4,000/month; 10-20 days' pay per year at or below; 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. Malaysia: 8 / 12 / 16 days by service (<2 / 2-5 / 5+ years), and 11 public holidays in 2026.
Sources: Japan (Kyokai Kenpo, Japan Pension Service, MHLW, National Tax Agency, MIC). Malaysia: every rate and rule is listed with its primary source on Malaysia'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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