Japan
Saudi Arabia
Exchange rates: European Central Bank reference rates, 2026-10-23. Japan: Tokyo, Kyokai Kenpo, salary paid evenly each month with no bonus, no dependants. Saudi Arabia: A single expatriate (non-Saudi) employee in Riyadh on an indefinite-term contract under the Saudi Labour Law, no dependants, salary paid evenly as 12 monthly payments with no bonus. The main white-collar hiring case for a foreign employer is an expatriate, so this is modelled instead of a Saudi national: expatriates pay no social insurance and no income tax. Salary structure assumed: basic pay 60% of total monthly salary, housing allowance 15% (25% of basic), other allowances 25%. These shares are an assumption, not a legal rule. The employer pays GOSI occupational hazards at 2% of the contributory wage (basic + housing, capped at SAR 45,000 a month) and accrues the end-of-service award (half a month's wage per year for the first 5 years) on the full salary, basic plus fixed allowances, the wage the Labour Law uses for the award. 2026 calendar year.
At three salary levels
| Salary (US$ equivalent) | Japan | Saudi Arabia |
|---|---|---|
| $60,000 | Cost 1.14× Keeps 73% ¥9,408,202 | Cost 1.06× Keeps 100% SAR 225,001 |
| $120,000 | Cost 1.10× Keeps 66% ¥18,816,403 | Cost 1.06× Keeps 100% SAR 450,003 |
| $250,000 | Cost 1.05× Keeps 57% ¥39,200,840 | Cost 1.05× Keeps 100% SAR 937,506 |
Employment rules compared
| Japan | Saudi Arabia | |
|---|---|---|
| Statutory annual leave | 10 days after six months, rising to 20; 5 days must be taken | 21 days (30 after 5 years) |
| Public holidays in 2026 | 18 | 10 (Riyadh) |
| Notice of dismissal | 30 days, or pay in lieu | 60 days from employer, 30 from employee (indefinite contract) |
| Severance required by law | None | End-of-service award: 0.5 month/year (first 5 years), 1 month/year after |
| Typical negotiated exit | Commonly 3–6 months’ pay plus unused leave | No official benchmark; art. 77 minimum for unjustified termination: 15 days/year, at least 2 months |
| Probation | Commonly 3–6 months; dismissal still needs grounds | Up to 180 days |
| Working hours | 40 a week; overtime capped at 45 a month and 360 a year | 8/day, 48/week (6/36 in Ramadan) |
| How hard is dismissal? | Very hard: needs objectively reasonable grounds | Moderate: legitimate reason and notice, or pay statutory compensation |
| Women in management (ILO) | 14.5% (2023) | No ILO data |
Questions
What does a US$120,000 salary cost an employer in Japan and Saudi Arabia?
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 Saudi Arabia (SAR 450,003) it is 1.06 times. The employee keeps 66% of salary in Japan and 100% in Saudi Arabia.
Is it cheaper to employ someone in Japan or Saudi Arabia?
At this salary, the employer’s on-cost is lower in Saudi Arabia. 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. Saudi Arabia: notice is 60 days from employer, 30 from employee (indefinite contract); severance required by law: end-of-service award: 0.5 month/year (first 5 years), 1 month/year after; typical negotiated exit: no official benchmark; art. 77 minimum for unjustified termination: 15 days/year, at least 2 months.
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. Saudi Arabia: 21 days (30 after 5 years), and 10 public holidays in 2026.
Sources: Japan (Kyokai Kenpo, Japan Pension Service, MHLW, National Tax Agency, MIC). Saudi Arabia: every rate and rule is listed with its primary source on Saudi Arabia'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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