Japan
Thailand
Exchange rates: European Central Bank reference rates, 2026-10-23. Japan: Tokyo, Kyokai Kenpo, salary paid evenly each month with no bonus, no dependants. Thailand: A single employee in Bangkok, no dependants, Thai national and tax resident, salary paid evenly as 12 monthly payments with no bonus, standard deductions only (50% employment-income expense deduction capped at ฿100,000, ฿60,000 personal allowance, and Social Security Fund contributions as paid). Insured under Section 33 of the Social Security Act. Rates for calendar 2026 (Thai tax year = calendar year 2026, filed by March 2027).
At three salary levels
| Salary (US$ equivalent) | Japan | Thailand |
|---|---|---|
| $60,000 | Cost 1.14× Keeps 73% ¥9,408,202 | Cost 1.01× Keeps 83% ฿2,024,712 |
| $120,000 | Cost 1.10× Keeps 66% ¥18,816,403 | Cost 1.00× Keeps 77% ฿4,049,424 |
| $250,000 | Cost 1.05× Keeps 57% ¥39,200,840 | Cost 1.00× Keeps 71% ฿8,436,299 |
Employment rules compared
| Japan | Thailand | |
|---|---|---|
| Statutory annual leave | 10 days after six months, rising to 20; 5 days must be taken | 6 days after 1 year (10–15 common) |
| Public holidays in 2026 | 18 | 13 (Bangkok) |
| Notice of dismissal | 30 days, or pay in lieu | One pay period (≈1 month), max 3 months |
| Severance required by law | None | 30–400 days' pay by service |
| 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; usually 119 days |
| Working hours | 40 a week; overtime capped at 45 a month and 360 a year | 8/day, 48/week; OT max 36 h/week |
| How hard is dismissal? | Very hard: needs objectively reasonable grounds | Moderate: no reason needed if severance paid; unfair-dismissal claims |
| Women in management (ILO) | 14.5% (2023) | 34.5% (2025) |
Questions
What does a US$120,000 salary cost an employer in Japan and Thailand?
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 Thailand (฿4,049,424) it is 1.00 times. The employee keeps 66% of salary in Japan and 77% in Thailand.
Is it cheaper to employ someone in Japan or Thailand?
At this salary, the employer’s on-cost is lower in Thailand. 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. Thailand: notice is one pay period (≈1 month), max 3 months; severance required by law: 30–400 days' pay by service; 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. Thailand: 6 days after 1 year (10–15 common), and 13 public holidays in 2026.
Sources: Japan (Kyokai Kenpo, Japan Pension Service, MHLW, National Tax Agency, MIC). Thailand: every rate and rule is listed with its primary source on Thailand'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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