Average Salary in Japan

Table of Contents

How much money does a person who works in Japan make?

Generally speaking, a worker working in Japan makes around 515,000 JPY each month. Salary is usually based on the number of years you have worked in your current company, and also how qualified you are.

A person who works for a company for five years or more makes about 550,000 JPY per month on average; whereas, if you’ve only been working at your company for less than 5 months, then you would make roughly 430,000 JPY per month.

For highly qualified employees (e.g., engineers) who have graduated from a prestigious university and have experience in their field, the salary can go up to 700,000 to 840,000 JPY per month.

In Japan’s declining population where young people are less motivated to work hard compared to the older generation–workers receive bonuses when they turn 60 and 70 years old.

When it comes to the working population, there aren’t as many people as before; which is why those who are still employed receive a monthly bonus for their service to the company.

Salary Distribution in Japan

Salary Scale

Salaries in Japan vary from 130,000 JPY per month to 200,000 JPY per month.

Japanese corporations pay workers based on seniority and performance.

For example, a company may offer 150,000 JPY to a new employee with no experience. A worker that has been an employee for five years will receive 200,000 JPY per month.

This number increases exponentially as employees gain more experience and time at the organization.

Salary on a Median Basis

The median monthly income in Japan is 545,000 JPY, which implies that half of the population earns less than 545,000 JPY and the other half earns more than 545,000 JPY. The median wage in Japan is 545,000 JPY per month.

The numbers for the median wage are adjusted every year, reflecting changes in income due to inflation.

For example, if an employee receives 545,000 JPY per month this year and the price of goods goes up next year, her salary might increase to 550,000 JPY per month.

Percentiles

One-quarter of the population earns less than 304,000 JPY, but seven-fifths of the population earn more than 304,000 JPY.

The median income is 304,000 JPY. The lower quartile (25% percentile) is 128,000 JPY and the upper quartile (75% percentile) is 561,000 JPY.

Percentiles are numbers on a list that splits the list into 100 equal parts.

For example, if there are six numbers on a list and the first number on the list says it represents 20% of people with certain characteristics while the last number on the list says it represents 80% of people with those characteristics, then all six numbers would represent specific percentiles.

What is the difference between the median income and the average pay in terms of profitability?

In terms of profitability, the median income is a much better measure than the average pay because it has half the people above and below it.

In other words, when you calculate what people in Japan earn each year there are many variables that go into this – education level being one of them.

If we were to look at just the averages then we would have a skewed perspective of how well somebody does financially when compared with the rest of society as a whole.

Average pay is calculated by adding up all the money that everybody earns and then dividing it by the number of people employed.

Because of this skewed perspective, average pay can often be misleading about how successful somebody actually is because there are always going to be outliers who earn vastly more than other members within the set group.

Comparing Salaries Based on Years of Experience

How does an individual’s income increase significantly in Japan?

In Japan, salary is based on years of experience and company type.

Salary increases by 0.7% for every year worked and 0.2% for small and medium-sized companies and 1.5% for large companies.

This would result in an increase of income that is more than double the number of working years if one works at a foreign company compared to working at a Japanese company.

According to Japan’s Ministry of Health, Labor and Welfare, salary increases significantly after working at the same company for 10 years.

After this period, each additional year results in a 1.7% increase in salary for men and 0.6% for women. This is more than twice the number of years worked compared to those who have been employed less than 2 years with their current employer.

Income can be increased through promotion as well as salary adjustments.

This difference in increase between those who have worked at the same company for 10+ years versus those who have worked at different companies can be observed when looking at Japan’s average annual income

Comparison Of Salaries Based On Education

How does your degree of education affect your salary in Japan?

This question has no simple answer. What one must consider is the type of degree, age, experience, work environment, and industry.

In Japan, the salary of an individual depends on the degree they have attained, their age, experience, work environment, and industry.

The difference between engineers and researchers is very big.

In Japan, the salary of a researcher is not very high compared to an engineer. There may be some exceptions but generally, engineers make more money than researchers do in Japan.

However, a researcher does their job with a lot of dedication and enthusiasm, while an engineer usually has to work hard for their salary even though it is higher.

If one receives a good education from university then that person’s future can be bright.

In addition, if they get experience from working at a company before going out into the world on their own then this could change how high of a salary they will receive when starting out in life after university/college however it doesn’t always mean that someone without experience will receive lower pay than someone who has experience.

If one receives an MBA (Master’s Degree in Business Administration) then their salary will likely go up depending on how good the graduate school they went to was.

It is usually only one year so it does not delay the person’s career.

Salary Comparisons According to Gender

Male workers earn 6% more than female employees in Japan on average across all industries.

One reason for this pay gap is that more women opt out of full-time work to take on part-time jobs so they can be at home with their children.

Men do not have that same option due to cultural expectations held within Japanese society. Men who ask for paternity leave could be seen as unmasculine or weak by other men or even employers. This discount on male social status is what holds men back.

Japanese women typically receive less pay than their male counterparts due to the lack of opportunity for qualified women of child-bearing age to balance work and family life.

Women with children often opt out of full-time employment so they can be home raising their children rather than at a job, leading to a lower salary since part-time jobs pay considerably less, on average than full-time positions.

Low numbers of Japanese women employed in high levels of leadership roles further illustrate that there are fewer opportunities for higher-paying career paths and these career paths require more time and dedication than traditional careers.

Men do not experience this same issue as cultural expectations held within Japanese society place them into a unique kind of ‘glass ceiling’ that keeps them from reaching the same level of success as women.

Japan’s Average Annual Income Increase Percentage

How much do Japanese employees get in yearly wage increases? How often do workers get compensation increases?

Employees in Japan may expect an estimated 8% wage raise every 16 months.

However, the amount depends on the industry and profession. If you work in an office or business environment, it’s common to get a bonus at the end of the year which can be anywhere from six months to one year’s pay.

Also, these bonuses are hefty depending on your company size and its success over the previous fiscal year. Workers in the telecom and banking industry can expect a 10%-15% increase in their salaries every year.

Annual Growth Rates by Industry in Japan

Energy – 7%
Healthcare – 5%
Education – 2%
Tourism – 1.5%
Retail – 1.2%
Manufacturing – 0.7%
Information Technology – 0.4%

Businesses operating in strong sectors often grant larger and more regular increases.

While exceptions occur, the economic status of each corporation is inextricably linked to the economic state of the nation or area.

These data are subject to change on a regular basis.

Salary Increase Rates on an Average Basis by Level of Experience

Currently, salary increase rates on an average basis in Japan are about 2% yearly. The percentage of salary increase depends directly on the level of experience one has with the company or organization.

For example, for any new hire, starting salaries are usually at 0%-5% depending on seniority.

However, after completing three years with the company/organization, the standard raise is 5%-7%.

Complete five years with the company/organization and a salary increase rate of 7%-8% is standard.

When a person has 10 years of service for a company/organization, then that employee can expect their yearly raise to be around 8% or more depending on individual performance within the organization.

After 20+ years of service, salaries tend to rise between 8%-10% per year based on performance as well as age and time served with the company/organization.

In Japan, it is common for employees to change companies every few years in order to receive higher pay raises and competitive fringe benefits.

Japan’s Bonus & Incentive Rates

How much money is granted as a bonus to the Japanese workers and how often does it occur?

Japanese workers receive a bonus each year as a reward to them for their hard work and dedication.

The usual rate of pay is around 15 to 20% of the monthly salary, but if an employee reaches certain milestones or meets specific conditions then they can expect more money as a reward for their efforts.

This usually ranges from 25 to 50%, but higher bonuses (upwards of 100%) can be awarded based on company profits and performance relative to other companies within its industry sector.

Sometimes these rewards are given out upon an employee’s personal discretion, while other times it is dependent on company policy.

Different Types of Bonuses

Bonuses for Individual Performance

To motivate employees, many companies give bonuses to their workers for good performance. Similar to salary and hourly wages, bonuses are a form of financial compensation given to employees.

There are different types of bonuses; some companies give sales-based bonuses, production-based bonuses, and so on. In terms of individual performance, the most common type of bonus is commission-based or sales-based bonuses.

Sales-based or commission-based bonuses are when an employee earns a percentage from the sales made from the company’s products/services.

Bonuses for Company Performance

These are common occurrences in the business world and can be given for various reasons.

One example of bonuses for company performance is the use of profit-sharing to increase team morale and invest workers in their own company’s success.

This compensation method involves distributing a portion of company revenue back to employees with the intention that this investment motivates them to work harder, increasing company productivity and output.

Bonuses Based on Performance

These are becoming more common in the current day workforce. Many employees are receiving annual performance bonuses, not only at large corporations but also at small businesses or even a sole proprietorship.

It is generally expected that a bonus will be awarded for work well done and exceeding the goals set forth by management. However, if a bonus is a contingent upon specific tasks being met, it may not be possible to give an employee a bonus until those tasks have been completed.

In some cases, an employee may receive bonuses based on their individual contributions to the company as well as overall team efforts throughout the year.

Bonuses Based on Performance can motivate employees to perform better each day. If someone knows they have the opportunity of receiving additional money from their employer for going above and beyond, they are more likely to try harder.

Holiday / Year-End Bonuses

These are some of the most common forms of bonuses in the business industry. It is often referred to as an end-of-the-year bonus, year-end bonus, year-end sum.

However, it should be noted that one must check their contract or employment terms before receiving any form of bonus.

This is due to the fact that some employers may not offer bonuses if an employee has broken rules set by them; for example, drinking with a customer.

Furthermore, contracts may specify what percentage of bonus an employee may receive if multiple employees work on one project or assignment; this percentage varies depending on how much effort each individual puts into said project/assignment.

Comparing Bonus Rates by Career Field

What qualifies a job as deserving of substantial incentives and a high salary in Japan?

Incentives and high salaries are not always awarded to those who receive the most praise from society.

In fact, those incentivized the most in Japan are those working jobs that have been passed over by a majority of people, such as working at a nuclear power plant or a job requiring security clearance.

One example of a job that has great incentives but is overlooked is waste disposal, which requires workers to work in extremely dangerous environments with minimal protection.

However, students looking for their first job do not really look into these “shameful” jobs because they think it does not contribute anything back to society.

In addition, civil service jobs generally offer high salaries with many benefits. If you compare the bonuses given to employees at different career fields, the civil service field was the one with the highest average bonus.

Comparing Bonuses Based on Seniority

When you are working for a company in Japan, if you have worked there long enough, you will be given bonuses based on your seniority.

These bonuses are usually given after New Year, which is called “shunto”. The amount of money depends on how long you have been at the company and what position you hold.

However, these bonuses are just one part of one’s salary that is fixed during the year. This may seem unfair to foreigners whose culture gives all workers equal pay regardless of the length of service.

For Japanese people, however, this is completely normal because it not only rewards workers who have stayed with the company for a long time but also keeps them focused on their work by paying them every year instead of every five years which is more common in another country.

Salary Information For Popular Jobs

Administration / Reception / Secretarial

Administrative Assistant – 291,000 JPY
Office Manager – 479,000 JPY
Office assistant – 269,000 JPY

Accountant / Auditing

Staff accountant – 393,000 JPY
Senior staff accountant – 488,000 JPY
Accounting supervisor – 534,000 JPY
Staff accountant – 291,000 JPY
Auditing Supervisor – 451,400 JPY
Tax account specialist – 479,200 JPY

Medical / Healthcare / Nursing

Staff nurse / Assistant nurse – 339,000 JPY
Nursing Specialist – 407,000 JPY
Pharmaceutical Affairs Expert – 539,300 JPY
Office Nurse – 281,000 JPY
Mental Health Counselor – 534,200 JPY
Dental Hygienist – 381,800 JPY
Physical Therapist – 507,500 JPY

Business Management

Loan officer – 579,500 JPY
Customer service manager – 427,000 JPY
Project leader – 398,000 JPY
Marketing manager – 620,000 JPY
Marketing executive – 375,700 JPY
Sales executive – 360,000 JPY

Engineering / Technical

Electrical engineer – 519,700 JPY
Mechanical engineer – 469,200 JPY
Industrial engineering specialist – 505,400 JPY
Production Engineer – 549,000 JPY
Business Development Manager – 451,500 JPY

Japan’s Average Hourly Wage

In Japan, the average hourly salary (pay per hour) is 2,970 JPY. This equates to an average hourly wage of around 2,970 JPY in Japan.

Japan’s minimum hourly salary is 1,397 JPY. This means that companies must pay their employees at least 1,397 JPY per hour to meet national law requirements.

The average annual wage in Japan is around 438,300 JPY and the average monthly income (after taxes) is 267,000 JPY. The Japanese government sets a cap on how much money people can earn.

Salary Comparisons Between the Public and Private Sectors

In Japan, public sector workers earn on average 4% more than their private-sector colleagues across all industries.

In addition, Japanese women employed in the private sector earn on average 21% less than their counterparts in the public sector.

Many related factors beyond salary exist when considering a career path, especially in Japan’s competitive job market.

For example, the public sector offers benefits such as a defined benefit pension system and low unemployment rates which are not available to private-sector employees.

Also mitigating against relatively high salaries in comparison to other developed economies is Japan’s tax structure that leads to an overall lower disposable income level for many people.