Japan
United Kingdom
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 Kingdom: Employee in London (England), UK resident and a UK national (no expatriate regime), single with no dependants, salary only paid evenly as monthly pay (no bonus, no benefits in kind), standard personal allowance, no student loan or salary sacrifice. Tax year 6 April 2026 - 5 April 2027 (income tax rates for England, Wales and Northern Ireland; Scottish rates do not apply in London). National Insurance category A (employee aged 21 or over). Employer side assumes a large employer (pay bill over £3 million, so the Apprenticeship Levy applies and the Employment Allowance is ignored) paying the statutory minimum auto-enrolment pension contribution.
At three salary levels
| Salary (US$ equivalent) | Japan | United Kingdom |
|---|---|---|
| $60,000 | Cost 1.14× Keeps 73% ¥9,408,202 | Cost 1.16× Keeps 80% £44,882 |
| $120,000 | Cost 1.10× Keeps 66% ¥18,816,403 | Cost 1.16× Keeps 70% £89,765 |
| $250,000 | Cost 1.05× Keeps 57% ¥39,200,840 | Cost 1.16× Keeps 59% £187,010 |
Employment rules compared
| Japan | United Kingdom | |
|---|---|---|
| Statutory annual leave | 10 days after six months, rising to 20; 5 days must be taken | 5.6 weeks (28 days), may include bank holidays |
| Public holidays in 2026 | 18 | 8 (London) |
| Notice of dismissal | 30 days, or pay in lieu | 1 week per year of service, max 12 weeks (contracts usually 1-3 months) |
| Severance required by law | None | Statutory redundancy pay after 2 years, max £22,530 |
| Typical negotiated exit | Commonly 3–6 months’ pay plus unused leave | No official benchmark; settlement agreements common |
| Probation | Commonly 3–6 months; dismissal still needs grounds | Not statutory; typically 3-6 months |
| Working hours | 40 a week; overtime capped at 45 a month and 360 a year | 48-hour weekly average, opt-out allowed |
| How hard is dismissal? | Very hard: needs objectively reasonable grounds | Moderate: fair reason and procedure after 2 years (6 months from 2027) |
| Women in management (ILO) | 14.5% (2023) | 40.5% (2025) |
Questions
What does a US$120,000 salary cost an employer in Japan and United Kingdom?
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 Kingdom (£89,765) it is 1.16 times. The employee keeps 66% of salary in Japan and 70% in United Kingdom.
Is it cheaper to employ someone in Japan or United Kingdom?
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. United Kingdom: notice is 1 week per year of service, max 12 weeks (contracts usually 1-3 months); severance required by law: statutory redundancy pay after 2 years, max £22,530; typical negotiated exit: no official benchmark; settlement agreements common.
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 Kingdom: 5.6 weeks (28 days), may include bank holidays, and 8 public holidays in 2026.
Sources: Japan (Kyokai Kenpo, Japan Pension Service, MHLW, National Tax Agency, MIC). United Kingdom: every rate and rule is listed with its primary source on United Kingdom'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.