Japan
Sweden
Exchange rates: European Central Bank reference rates, 2026-10-23. Japan: Tokyo, Kyokai Kenpo, salary paid evenly each month with no bonus, no dependants. Sweden: Employee registered (folkbokförd) in Stockholm municipality, Swedish tax resident and a Swedish national (no expert tax relief), aged 40 (under 66), single with no children, not a member of the Church of Sweden, salary only paid evenly as monthly pay (no bonus), income year 2026. Final tax on employment income: municipal and regional income tax at Stockholm's 2026 rate of 30.55%, state income tax, Stockholm's burial fee and the public service fee, after the basic deduction (grundavdrag), less the earned-income tax credit (jobbskatteavdrag), the tax reduction for the general pension contribution and the tax reduction for earned income. The employee's 7% general pension contribution is shown as a contribution; it is fully offset by an equal tax reduction, so its net effect on take-home pay is nil. No collective-agreement occupational pension is included.
At three salary levels
| Salary (US$ equivalent) | Japan | Sweden |
|---|---|---|
| $60,000 | Cost 1.14× Keeps 73% ¥9,408,202 | Cost 1.31× Keeps 79% kr 596,676 |
| $120,000 | Cost 1.10× Keeps 66% ¥18,816,403 | Cost 1.31× Keeps 65% kr 1,193,353 |
| $250,000 | Cost 1.05× Keeps 57% ¥39,200,840 | Cost 1.31× Keeps 57% kr 2,486,152 |
Employment rules compared
| Japan | Sweden | |
|---|---|---|
| Statutory annual leave | 10 days after six months, rising to 20; 5 days must be taken | 25 days (semesterlagen) |
| Public holidays in 2026 | 18 | 13 (Stockholm) |
| Notice of dismissal | 30 days, or pay in lieu | 1-6 months by service (employer) |
| Severance required by law | None | None by law; TRR-type schemes via agreements |
| Typical negotiated exit | Commonly 3–6 months’ pay plus unused leave | No official benchmark |
| Probation | Commonly 3–6 months; dismissal still needs grounds | Up to 6 months, no reason needed |
| Working hours | 40 a week; overtime capped at 45 a month and 360 a year | 40 h/week; overtime capped |
| How hard is dismissal? | Very hard: needs objectively reasonable grounds | Moderate: objective grounds; seniority order |
| Women in management (ILO) | 14.5% (2023) | 44.7% (2024) |
Questions
What does a US$120,000 salary cost an employer in Japan and Sweden?
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 Sweden (kr 1,193,353) it is 1.31 times. The employee keeps 66% of salary in Japan and 65% in Sweden.
Is it cheaper to employ someone in Japan or Sweden?
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. Sweden: notice is 1-6 months by service (employer); severance required by law: none by law; trr-type schemes via agreements; 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. Sweden: 25 days (semesterlagen), and 13 public holidays in 2026.
Sources: Japan (Kyokai Kenpo, Japan Pension Service, MHLW, National Tax Agency, MIC). Sweden: every rate and rule is listed with its primary source on Sweden'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.