Japan
Philippines
Exchange rates: European Central Bank reference rates, 2026-10-23. Japan: Tokyo, Kyokai Kenpo, salary paid evenly each month with no bonus, no dependants. Philippines: A single employee in Metro Manila, no dependants, Filipino citizen and tax resident, purely compensation income, salary paid evenly as 12 monthly payments, no bonus and no allowances, mandatory SSS, PhilHealth and Pag-IBIG contributions only. The statutory 13th-month pay (PD 851, one-twelfth of annual basic pay, tax-exempt with other benefits up to ₱90,000) is NOT included: real annual cash pay for most Manila employees is 13 months, so take-home here understates it by about 8%. Rates for calendar 2026 (Philippine tax year = calendar year); income tax uses the TRAIN schedule for 2023 onwards.
At three salary levels
| Salary (US$ equivalent) | Japan | Philippines |
|---|---|---|
| $60,000 | Cost 1.14× Keeps 73% ¥9,408,202 | Cost 1.02× Keeps 74% ₱3,818,547 |
| $120,000 | Cost 1.10× Keeps 66% ¥18,816,403 | Cost 1.01× Keeps 72% ₱7,637,095 |
| $250,000 | Cost 1.05× Keeps 57% ¥39,200,840 | Cost 1.00× Keeps 69% ₱15,910,614 |
Employment rules compared
| Japan | Philippines | |
|---|---|---|
| Statutory annual leave | 10 days after six months, rising to 20; 5 days must be taken | 5 days' service incentive leave (10–15 common) |
| Public holidays in 2026 | 18 | 20 (Manila) |
| Notice of dismissal | 30 days, or pay in lieu | 1 month to employee and DOLE (authorised causes) |
| Severance required by law | None | 0.5–1 month per year (authorised causes) |
| Typical negotiated exit | Commonly 3–6 months’ pay plus unused leave | No official benchmark |
| Probation | Commonly 3–6 months; dismissal still needs grounds | Max 6 months |
| Working hours | 40 a week; overtime capped at 45 a month and 360 a year | 8/day; OT +25% |
| How hard is dismissal? | Very hard: needs objectively reasonable grounds | Hard: just or authorised cause and due process |
| Women in management (ILO) | 14.5% (2023) | 43.5% (2024) |
Questions
What does a US$120,000 salary cost an employer in Japan and Philippines?
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 Philippines (₱7,637,095) it is 1.01 times. The employee keeps 66% of salary in Japan and 72% in Philippines.
Is it cheaper to employ someone in Japan or Philippines?
At this salary, the employer’s on-cost is lower in Philippines. 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. Philippines: notice is 1 month to employee and dole (authorised causes); severance required by law: 0.5–1 month per year (authorised causes); 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. Philippines: 5 days' service incentive leave (10–15 common), and 20 public holidays in 2026.
Sources: Japan (Kyokai Kenpo, Japan Pension Service, MHLW, National Tax Agency, MIC). Philippines: every rate and rule is listed with its primary source on Philippines'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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