Japan
Spain
Exchange rates: European Central Bank reference rates, 2026-10-23. Japan: Tokyo, Kyokai Kenpo, salary paid evenly each month with no bonus, no dependants. Spain: Single employee in Madrid city, Spanish tax resident for the full 2026 calendar year (the IRPF tax year), under 65, no dependants, open-ended (indefinido) contract in an office job, salary only paid evenly (12 payments, or 14 with the two extra payments prorated for social security), no bonus, no other income. Only the general deductions apply: employee social security, the €2,000 'otros gastos', the reduction for earned income and the personal minimum. Local resident case; the 'Beckham' inbound-worker regime (flat 24%) is not modelled.
At three salary levels
| Salary (US$ equivalent) | Japan | Spain |
|---|---|---|
| $60,000 | Cost 1.14× Keeps 73% ¥9,408,202 | Cost 1.32× Keeps 72% €53,605 |
| $120,000 | Cost 1.10× Keeps 66% ¥18,816,403 | Cost 1.19× Keeps 65% €107,210 |
| $250,000 | Cost 1.05× Keeps 57% ¥39,200,840 | Cost 1.10× Keeps 61% €223,354 |
Employment rules compared
| Japan | Spain | |
|---|---|---|
| Statutory annual leave | 10 days after six months, rising to 20; 5 days must be taken | 30 calendar days (about 22 working days) |
| Public holidays in 2026 | 18 | 14 (Madrid) |
| Notice of dismissal | 30 days, or pay in lieu | 15 days for objective dismissal; none for disciplinary |
| Severance required by law | None | 20 days/year (max 12 months); unfair 33 days/year (max 24 months) |
| Typical negotiated exit | Commonly 3–6 months’ pay plus unused leave | No official benchmark; settlements often near 33 days/year |
| Probation | Commonly 3–6 months; dismissal still needs grounds | Up to 6 months (graduates/technicians), 2 months others |
| Working hours | 40 a week; overtime capped at 45 a month and 360 a year | 40h/week annual average; overtime max 80h/year |
| How hard is dismissal? | Very hard: needs objectively reasonable grounds | Moderate: employer can pay unfair-dismissal compensation instead of reinstating |
| Women in management (ILO) | 14.5% (2023) | 37% (2024) |
Questions
What does a US$120,000 salary cost an employer in Japan and Spain?
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 Spain (€107,210) it is 1.19 times. The employee keeps 66% of salary in Japan and 65% in Spain.
Is it cheaper to employ someone in Japan or Spain?
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. Spain: notice is 15 days for objective dismissal; none for disciplinary; severance required by law: 20 days/year (max 12 months); unfair 33 days/year (max 24 months); typical negotiated exit: no official benchmark; settlements often near 33 days/year.
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. Spain: 30 calendar days (about 22 working days), and 14 public holidays in 2026.
Sources: Japan (Kyokai Kenpo, Japan Pension Service, MHLW, National Tax Agency, MIC). Spain: every rate and rule is listed with its primary source on Spain's HR data. Exchange rates: ECB reference rates (2026-10-23); for currencies the ECB does not quote, the central bank's rate.
Spotted an error or a newer figure? Report a correction. We check every report against the source and reply within ten business days.