Japan
Taiwan
Exchange rates: European Central Bank reference rates, 2026-10-23. Japan: Tokyo, Kyokai Kenpo, salary paid evenly each month with no bonus, no dependants. Taiwan: A single employee in Taipei, no dependants, Taiwan national and tax resident, salary paid evenly as 12 monthly payments with no bonus, standard deduction (not itemised). Employer in an office industry (occupational-accident rate 0.15%). Rates for calendar 2026; income tax uses the Ministry of Finance amounts for income year 2026 (filed May 2027).
At three salary levels
| Salary (US$ equivalent) | Japan | Taiwan |
|---|---|---|
| $60,000 | Cost 1.14× Keeps 73% ¥9,408,202 | Cost 1.13× Keeps 90% NT$1,952,570 |
| $120,000 | Cost 1.10× Keeps 66% ¥18,816,403 | Cost 1.09× Keeps 83% NT$3,905,141 |
| $250,000 | Cost 1.05× Keeps 57% ¥39,200,840 | Cost 1.05× Keeps 73% NT$8,135,710 |
Employment rules compared
| Japan | Taiwan | |
|---|---|---|
| Statutory annual leave | 10 days after six months, rising to 20; 5 days must be taken | 3–30 days by seniority (15 after 5 years) |
| Public holidays in 2026 | 18 | 16 (Taipei) |
| Notice of dismissal | 30 days, or pay in lieu | 10/20/30 days by service (3 months/1 year/3 years) |
| Severance required by law | None | 0.5 month's pay per year, max 6 months |
| Typical negotiated exit | Commonly 3–6 months’ pay plus unused leave | No official benchmark |
| Probation | Commonly 3–6 months; dismissal still needs grounds | None in law; ~3 months by agreement |
| Working hours | 40 a week; overtime capped at 45 a month and 360 a year | 8/day, 40/week; OT max 46 h/month |
| How hard is dismissal? | Very hard: needs objectively reasonable grounds | Moderate: listed statutory grounds only |
| Women in management (ILO) | 14.5% (2023) | No ILO data |
Questions
What does a US$120,000 salary cost an employer in Japan and Taiwan?
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 Taiwan (NT$3,905,141) it is 1.09 times. The employee keeps 66% of salary in Japan and 83% in Taiwan.
Is it cheaper to employ someone in Japan or Taiwan?
At this salary, the employer’s on-cost is lower in Taiwan. 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. Taiwan: notice is 10/20/30 days by service (3 months/1 year/3 years); severance required by law: 0.5 month's pay per year, max 6 months; 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. Taiwan: 3–30 days by seniority (15 after 5 years), and 16 public holidays in 2026.
Sources: Japan (Kyokai Kenpo, Japan Pension Service, MHLW, National Tax Agency, MIC). Taiwan: every rate and rule is listed with its primary source on Taiwan'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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