Japan
Portugal
Exchange rates: European Central Bank reference rates, 2026-10-23. Japan: Tokyo, Kyokai Kenpo, salary paid evenly each month with no bonus, no dependants. Portugal: Employee in Lisbon (mainland rates), Portuguese tax resident and national, single with no dependants, salary only (category A), calendar tax year 2026. Salaries in Portugal are paid in 14 instalments (12 months plus the statutory holiday and Christmas allowances); all figures here are annual totals, and because IRS is settled on total annual income and social security is a flat uncapped 11%, the year-end result is the same whether the annual salary is paid in 12 or 14 instalments (only monthly withholding differs). Income tax on the 2026 general rates as cut retroactively to 1 January 2026 by Decree-Law 212/2026, with the specific deduction for employment income (the higher of 8.54 × IAS = €4,587.09 and the employee's social security), the solidarity surcharge, and the general family expenses deduction of €250 (reached by almost every taxpayer through e-invoices). IRS Jovem (under-35 relief), the NHR regime and its successor IFICI are not applied. The Lisbon municipal IRS rebate is not applied (see notes).
At three salary levels
| Salary (US$ equivalent) | Japan | Portugal |
|---|---|---|
| $60,000 | Cost 1.14× Keeps 73% ¥9,408,202 | Cost 1.24× Keeps 66% €53,605 |
| $120,000 | Cost 1.10× Keeps 66% ¥18,816,403 | Cost 1.24× Keeps 57% €107,210 |
| $250,000 | Cost 1.05× Keeps 57% ¥39,200,840 | Cost 1.24× Keeps 50% €223,354 |
Employment rules compared
| Japan | Portugal | |
|---|---|---|
| Statutory annual leave | 10 days after six months, rising to 20; 5 days must be taken | 22 working days (+ holiday allowance) |
| Public holidays in 2026 | 18 | 14 (Lisbon) |
| Notice of dismissal | 30 days, or pay in lieu | Employer 15-75 days by service; employee 30/60 days |
| Severance required by law | None | 14 days' pay per year (objective grounds) |
| Typical negotiated exit | Commonly 3–6 months’ pay plus unused leave | No official benchmark; mutual-agreement exits common |
| Probation | Commonly 3–6 months; dismissal still needs grounds | 90 days; 180 or 240 for senior roles |
| Working hours | 40 a week; overtime capped at 45 a month and 360 a year | 40 h/week, 8 h/day |
| How hard is dismissal? | Very hard: needs objectively reasonable grounds | Hard: just cause or objective grounds with formal procedure |
| Women in management (ILO) | 14.5% (2023) | 39.4% (2025) |
Questions
What does a US$120,000 salary cost an employer in Japan and Portugal?
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 Portugal (€107,210) it is 1.24 times. The employee keeps 66% of salary in Japan and 57% in Portugal.
Is it cheaper to employ someone in Japan or Portugal?
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. Portugal: notice is employer 15-75 days by service; employee 30/60 days; severance required by law: 14 days' pay per year (objective grounds); typical negotiated exit: no official benchmark; mutual-agreement exits common.
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. Portugal: 22 working days (+ holiday allowance), and 14 public holidays in 2026.
Sources: Japan (Kyokai Kenpo, Japan Pension Service, MHLW, National Tax Agency, MIC). Portugal: every rate and rule is listed with its primary source on Portugal'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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