What Is the average salary in Japan? and Economic Outlook

average salary in Japan

Japan, known for its technological advancements and rich cultural heritage, also presents a unique economic landscape. Japan is also the third largest economy in the world after the US and China.

The average salary in Japan is around 516,000 JPY per month which is 61,92,000 JPY per year. The salaries in Japan may range from 130,000 JPY (lowest average) to 2,300,000 JPY which is the highest average, the actual maximum salary is higher than this maximum average.

 

Japan, a key player in the global economy, is widely known for its thriving automobile industry and its ability to adapt to changing market trends. This vibrant nation, with its unique blend of tradition and modernity, offers a rich cultural experience and a high standard of living. For individuals considering a move to Japan or those already residing there, understanding the nation’s salary landscape can be immensely beneficial.

This article delves into the average salary in Japan for 2023, delivering valuable insights that can help you plan your life in this fascinating nation more efficiently.

Statistics on the average salary in Japan

Generally, the average salary in Japan varies continuously from year to year based on factors affecting as city or region you work, education qualifications, work experience, and specific industry.

 

So, by taking all these factors into consideration, the average salary in Japan according to SalaryExplorer is around 5,16,000 JPY per month or 3428.43 USD. 

 

Let’s have a quick look at the other aspects of the average salary in Japan such as the salary range in Japan, Japan’s median salary and the minimum wage in Japan. 

1. Salary Range in Japan

 

According to the Salary Survey by SalaryExplorer, the Japanese monthly average salaries range from 130,000 JPY or  958 USD being the lowest recorded salary to 2,300,000 JPY or 16,944 USD which is the maximum average income, is only the maximum average the actual maximum salary is higher than this. 

 

2. The median salary in Japan

 

The median salary offers a more accurate picture of earnings, representing the middle salary value in the salary collection of the workforce of a nation. This figure helps in understanding the standard of living for the average Japanese worker.

 

The Japanese median salary is 472,000 JPY, which means that 50% of the population in Japan earns above 472,000 JPY while the other half earns less than that.

 

3. What is the minimum wage in Japan?

The minimum wage in Japan is a legally mandated lowest hourly wage that employers must pay their workers. Unlike many countries where a national minimum wage is set, in Japan, the minimum wage varies by region. This variation is due to the differing cost of living and economic conditions across the regions of the country.

 

Each region has a Regional Minimum Wage Council that sets the minimum wage for each prefecture based on that region’s economic strength.

 

Japan’s weighted national minimum hourly wage has been increased from 961 JPY/Hour in 2022 to 1002 JPY/Hour up by 41 JPY/Hour for the financial year 2023 which took effect from October 1, 2023. It is the highest recorded National minimum wage per hour.

 

Tokyo has the highest minimum wage in the country, as its minimum wage got a hike of 41JPY to 1,113 JPY/Hour and the lowest minimum wage is recorded in Tottori prefecture with 790 JPY/Hour

 

4 factors that influence salaries in Japan

 

Salaries in Japan vary based the influencing factors like location, industry, education and work experience. Let us see the role of these parameters in determining Japanese Salaries.

 

1. Region 

 

As discussed above, the salaries of employees in Japan are influenced by the region of their work. Being the capital city of Japan and having the highest density of business organizations, Tokyo has the highest average salary in Japan followed by Yokohama.

Here is the list of average salaries in Japan by region:

Region Average Salary/Month
Tokyo
576,000 JPY
Yokohama
566,000 JPY
Osaka
557,000 JPY
Nagoya
547,000 JPY
Sapporo
537,000 JPY
Fukuoka
528,000 JPY
Kobe
517,000 JPY
Kyoto
507,000 JPY
Saitama
487,000 JPY
Hiroshima
477,000 JPY
Sendai
467,000 JPY

Source: SalaryExplorer

2. Industry

The industry sector plays a vital role in determining salary levels. Different industries offer varying salary scales. Sectors like IT and finance might offer higher salaries compared to others.

Here is a breakdown of salaries based on industry.

Industry Average Annual Salary
Medical and Health Care
9,220,000 JPY (67,921 USD)
Science and Technical Services
8,270,000 JPY (60,923 USD)
Real Estate
6,990,000 JPY (51,494 USD)
Education
6,550,000 JPY (48,252 USD)
Finance and Accounting
6,360,000 JPY (46,853 USD)

Source: Salary Explorer

 

Note: The industry average is not necessarily the direct indication of  each role’s salary.

3. Education level

 

The level of education plays a critical role in determining salaries in Japan. Higher educational qualifications often lead to better-paying jobs.

 

  • Employees with a certificate or diploma earned 17% more money on average than those who only finished high school.

  • Employees who completed a Bachelor’s Degree made 24% more money than people with a certificate or diploma.

  • Individuals with a Master’s Degree earned 29% more than those with a Bachelor’s Degree.

  • Finally, professionals with a PhD made 23% more money than those with a Master’s Degree, even if they did the same job.

Source: Salary Explorer 

4. Work Experience level

Experience Matters! Your salary is mainly based on how much experience you have, and more experience generally means higher pay.

 

So, another key factor influencing an employee’s net income in Japan is their work experience levels. Here’s the data on how the average salary increases with experience:

 

  1. 2-5 Years Experience: Employees with 2 to 5 years of experience usually earn about 32% more than new or junior employees in all kinds of jobs.

  2. Over 5 Years Experience: If an employee has more than 5 years of experience, he can expect to earn an average of 36% more than those with less experience.

  3. 10+ Years of Work: After working for 10 years, salaries typically increase by 21%.

  4. Over Years 15 of Work: There is a 14% increase for those who’ve been working for over 15 years.

Note: These numbers are general estimates. For a more accurate picture, it’s essential to consider specific job titles and roles.

 

Conclusion

In conclusion, comprehending the salary climate in Japan necessitates a keen understanding of numerous elements such as location, education, tenure, and field. The average income in Japan encompasses a broad spectrum, revealing distinct gaps among various industries and areas. Despite this, Japan’s economic future appears optimistic, driven by a strong commitment to creativity and adjustment to worldwide economic patterns.

 

In this context, TimeChamp employee monitoring software emerges as a crucial tool for businesses, especially in managing outsourced employees. TimeChamp offers insights into productivity and work patterns, helping optimize efficiency and align employee efforts with organizational goals. For anyone navigating Japan’s job market or managing a workforce within its economy, TimeChamp is an invaluable asset for enhancing productivity and success in this unique and vibrant market.