Japan
United Arab Emirates
Exchange rates: European Central Bank reference rates, 2026-10-23. Japan: Tokyo, Kyokai Kenpo, salary paid evenly each month with no bonus, no dependants. United Arab Emirates: A single expatriate (non-GCC national) employee in Dubai on the federal labour law (Federal Decree-Law No. 33 of 2021), outside the DIFC and ADGM free zones, full-time unlimited contract, no dependants, salary paid evenly as 12 monthly payments with no bonus. The UAE levies no personal income tax on employment income. Expatriates are not covered by the GPSSA pension scheme, so the only employee deduction is the compulsory involuntary loss of employment (ILOE) insurance premium. The employer cost includes an accrual for the statutory end-of-service gratuity (21 days' basic wage per year of service for the first five years), assuming basic wage is 60% of total monthly salary, with the rest paid as housing, transport and other allowances. The basic share is an assumption, not a legal rule: contracts set it and it varies widely. Calendar year 2026. Expatriates are the main white-collar case in Dubai; UAE nationals are covered by GPSSA instead (see notes).
At three salary levels
| Salary (US$ equivalent) | Japan | United Arab Emirates |
|---|---|---|
| $60,000 | Cost 1.14× Keeps 73% ¥9,408,202 | Cost 1.03× Keeps 100% AED 220,348 |
| $120,000 | Cost 1.10× Keeps 66% ¥18,816,403 | Cost 1.03× Keeps 100% AED 440,697 |
| $250,000 | Cost 1.05× Keeps 57% ¥39,200,840 | Cost 1.03× Keeps 100% AED 918,118 |
Employment rules compared
| Japan | United Arab Emirates | |
|---|---|---|
| Statutory annual leave | 10 days after six months, rising to 20; 5 days must be taken | 30 calendar days |
| Public holidays in 2026 | 18 | 13 (Dubai) |
| Notice of dismissal | 30 days, or pay in lieu | 30–90 days, per contract |
| Severance required by law | None | Gratuity: 21 days' basic pay a year (30 after 5 years) |
| Typical negotiated exit | Commonly 3–6 months’ pay plus unused leave | No official benchmark |
| Probation | Commonly 3–6 months; dismissal still needs grounds | Max 6 months; 14 days' notice by employer |
| Working hours | 40 a week; overtime capped at 45 a month and 360 a year | 8/day, 48/week; OT max 2 h/day |
| How hard is dismissal? | Very hard: needs objectively reasonable grounds | Easy: notice for a legitimate reason; unlawful-dismissal award max 3 months |
| Women in management (ILO) | 14.5% (2023) | 19% (2025) |
Questions
What does a US$120,000 salary cost an employer in Japan and United Arab Emirates?
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 United Arab Emirates (AED 440,697) it is 1.03 times. The employee keeps 66% of salary in Japan and 100% in United Arab Emirates.
Is it cheaper to employ someone in Japan or United Arab Emirates?
At this salary, the employer’s on-cost is lower in United Arab Emirates. 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. United Arab Emirates: notice is 30–90 days, per contract; severance required by law: gratuity: 21 days' basic pay a year (30 after 5 years); 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. United Arab Emirates: 30 calendar days, and 13 public holidays in 2026.
Sources: Japan (Kyokai Kenpo, Japan Pension Service, MHLW, National Tax Agency, MIC). United Arab Emirates: every rate and rule is listed with its primary source on United Arab Emirates'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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