Japan
Vietnam
Exchange rates: European Central Bank reference rates, 2026-10-23. Japan: Tokyo, Kyokai Kenpo, salary paid evenly each month with no bonus, no dependants. Vietnam: A single employee in central Ho Chi Minh City (minimum-wage Region I), no dependants, Vietnamese national and tax resident, indefinite-term labour contract, salary paid evenly as 12 monthly payments with no bonus and no 13th-month pay, contribution salary equal to the full salary. Compulsory social, health and unemployment insurance at 2026 rates and caps (the social and health insurance cap rose with the base salary on 1 July 2026). Personal income tax on salary for tax period 2026 under the new Law on Personal Income Tax No. 109/2025/QH15 (5-bracket table and ₫15.5m monthly personal deduction, applied to salaries from 1 January 2026).
At three salary levels
| Salary (US$ equivalent) | Japan | Vietnam |
|---|---|---|
| $60,000 | Cost 1.14× Keeps 73% ¥9,408,202 | Cost 1.09× Keeps 78% ₫1,542,574,645 |
| $120,000 | Cost 1.10× Keeps 66% ¥18,816,403 | Cost 1.04× Keeps 71% ₫3,085,149,290 |
| $250,000 | Cost 1.05× Keeps 57% ¥39,200,840 | Cost 1.02× Keeps 68% ₫6,427,394,354 |
Employment rules compared
| Japan | Vietnam | |
|---|---|---|
| Statutory annual leave | 10 days after six months, rising to 20; 5 days must be taken | 12 working days (+1 per 5 years) |
| Public holidays in 2026 | 18 | 12 (Ho Chi Minh City) |
| Notice of dismissal | 30 days, or pay in lieu | 45 days (indefinite contract) |
| Severance required by law | None | 0.5–1 month per year, UI years excluded |
| Typical negotiated exit | Commonly 3–6 months’ pay plus unused leave | No official benchmark |
| Probation | Commonly 3–6 months; dismissal still needs grounds | Max 60 days for graduates, 180 for managers |
| Working hours | 40 a week; overtime capped at 45 a month and 360 a year | 8/day, 48/week; OT max 40 h/month |
| How hard is dismissal? | Very hard: needs objectively reasonable grounds | Hard: statutory grounds and procedure only |
| Women in management (ILO) | 14.5% (2023) | 26.1% (2024) |
Questions
What does a US$120,000 salary cost an employer in Japan and Vietnam?
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 Vietnam (₫3,085,149,290) it is 1.04 times. The employee keeps 66% of salary in Japan and 71% in Vietnam.
Is it cheaper to employ someone in Japan or Vietnam?
At this salary, the employer’s on-cost is lower in Vietnam. 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. Vietnam: notice is 45 days (indefinite contract); severance required by law: 0.5–1 month per year, ui years excluded; 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. Vietnam: 12 working days (+1 per 5 years), and 12 public holidays in 2026.
Sources: Japan (Kyokai Kenpo, Japan Pension Service, MHLW, National Tax Agency, MIC). Vietnam: every rate and rule is listed with its primary source on Vietnam'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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