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TAKE-HOME PAY COMPARISON —
What You Actually Take Home: Deductions in Each Country
This is where the comparison gets interesting — and where many OFW aspirants make the mistake of choosing a country based on gross salary alone.
Japan — Deductions
- Income tax: ¥5,000 – ¥10,000/month
- Health insurance: ¥8,000 – ¥12,000/month
- Pension: ¥8,000 – ¥15,000/month (partially refundable when you leave Japan)
- Employment insurance: ¥1,000 – ¥2,000/month
- Housing: ¥0 – ¥30,000/month (many employers provide free or subsidized housing)
Total deductions: approximately ¥22,000 – ¥69,000/month
Estimated take-home: ¥120,000 – ¥190,000 (₱45,000 – ₱71,000)
The big advantage in Japan: many manufacturing employers provide free dormitory housing, which eliminates your single largest expense. If your housing is free, your effective take-home is significantly higher.
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Also important: when you leave Japan, you can apply for a Lump-Sum Withdrawal Payment to get back a portion of your pension contributions. This can be ¥500,000 – ¥1,500,000 depending on how long you worked — essentially a large bonus at the end of your contract.
South Korea — Deductions
- Income tax: approximately ₩50,000 – ₩80,000/month
- National health insurance: approximately ₩70,000 – ₩90,000/month
- National pension: approximately ₩90,000 – ₩100,000/month (refundable upon departure for citizens of countries with pension agreements)
- Employment insurance: approximately ₩15,000 – ₩20,000/month
- Housing: ₩200,000 – ₩400,000/month (employer-provided dormitories are common but not always free)
Total deductions: approximately ₩425,000 – ₩690,000/month
Estimated take-home: ₩1,460,000 – ₩1,730,000 (₱59,000 – ₱70,000)
Korea’s deductions are heavier than Japan’s in percentage terms. However, like Japan, the pension contributions are partially refundable when you leave the country. The key variable is housing — if your employer provides a dormitory (common in manufacturing), your savings potential jumps significantly.
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Canada — Deductions
- Federal income tax: approximately 15% on the first bracket
- Provincial income tax: varies by province (5% – 10%)
- CPP (Canada Pension Plan): approximately 5.95% of earnings
- EI (Employment Insurance): approximately 1.63% of earnings
- Housing: CAD $800 – $2,000+/month (this is the killer — Canada does NOT typically provide employer housing for most workers)
Total deductions (tax + mandatory contributions): approximately CAD $500 – $800/month
Plus housing: CAD $800 – $2,000/month
Estimated take-home after taxes: CAD $1,800 – $2,400 (₱76,000 – ₱101,000)
Estimated take-home after taxes AND housing: CAD $600 – $1,600 (₱25,000 – ₱67,000)
Here’s the brutal truth about Canada: the gross salary looks amazing, but the cost of housing destroys your savings potential unless you’re in a rural area or your employer provides accommodation (which is mainly common in agriculture). Rent in cities like Toronto or Vancouver can easily consume 40-60% of your income.
The real comparison is not salary — it’s savings potential. And that changes everything.
[NEXT PAGE: Cost of Living Breakdown — Where Your Money Goes →]
