What Is The Average Salary In Japan For Foreigners?
Japan is one of the world’s leading economies, with companies primarily focused on automotive, technology, and innovation. It is an excellent environment for business development and an emerging market for process outsourcing.
Wondering How Much It Costs To Hire Japanese Labor?
The average salary in Japan in 2023 will be 6,180,000 yen (JPY) or $53,583 per year (based on February 2023 exchange rates, 1 yen = $0.0087).
In this article, we will explore more details about the average salary in Japan and the factors that influence it. We’ll also cover annual growth, the highest and lowest-paying jobs, and the country’s economic outlook.
Average Salary Statistics in Japan
Average wages in Japan vary by region. It also depends on factors such as work location, work experience, education level, etc.
So, taking all these aspects into contemplation, the average monthly salary for an employee in Japan is around 515,000 yen (JPY). That’s about $4,467 (USD).
This average salary includes additional benefits such as accommodation and transportation.
Now let’s look at other aspects of the average salary in Japan.
A. Japanese salary range
The average monthly salary for Japanese employees ranges from 130,000 yen ($1,128) to 2,300,000 yen ($19,963).
Note: The maximum salary range is the most increased average, not the highest salary for Japanese.
B. Median Salary
According to Salary Explorer, the average salary in Japan in 2023 will be 545,000 yen ($4,730) per month.
What does the average content say?
This value represents the midpoint that divides the Japanese workforce. For example, 50% of Japanese have above-the-middle incomes, while the other half have lower incomes.
The mids are less sensitive to the high or low end of the note spectrum, which greatly affects the mids.
In general, employers should strive to offer recruiting packages close to the median salary for specific job categories.
C. Minimum wage
Japan generally works 40 hours per week, and the hourly minimum wage for workers is set by the regional minimum wage committee in each region.
On average, the hourly minimum wage for workers in the country will increase from 902 yen/hour in 2023 to 930 yen/hour in 2022.
However, if workers work overtime, they are entitled to higher wages in addition to hourly earnings under the Labour Standards Act of 1947.
Compared with other high-income international cities such as Hong Kong and Seoul, workers in Tokyo have the highest minimum wage in Japan at about 985 yen ($8.50) an hour. What sets Tokyo apart from the rest of Japan is that it has more businesses and better infrastructure.
Note: All salary data presented in this article are averages and are intended to be general guidelines rather than precise values.
Next, let’s explore the different factors that affect wages in Japan.
Average wages in Tokyo are among the highest in Japan due to the many large companies and larger business markets here. Cities such as Yokohama and Osaka followed.
2. Educational level
- The average salary in Japan increases with the level of education. The higher an employee’s rating, the more money they make. E.g: Employees with a college degree or diploma earn about 17% more than high school graduates.
- Workers with a bachelor’s grade earn 24% additionally than those with a college degree or diploma.
- Related to Ph.D. They earn 23% more than employees with a master’s degree.
Another key factor in selecting the net earnings of Japanese foreign employees is their work experience. Generally, more experienced employees earn higher salaries.
Average wages in Japan are also affected by the active sector. Different industries offer different salaries for working professionals.
Note: Medical professionals do not necessarily earn the highest salaries in Japan. Industry averages are not a direct indicator of salary for each position. For example, a head financial officer may earn a much higher salary, but an accountant’s lower salary will lower the industry average.
Average wage growth in Japan
The average salary of Japanese employees increases by about 9% every 15 months. The 16-month period is mainly due to the fact that valuations are rarely done on an annual basis.
This growth may vary by industry and experience level. Experienced salary increases are mainly due to companies encouraging experienced employees to retain their services.
Japan Economic Outlook
At $5.39 trillion, Japan is the world’s third-largest economy after the United States and China.
There are many big companies, especially Japanese companies like Sony, Honda, Nikon, etc. In fact, 53 Fortune 500 companies are headquartered in Japan.
However, the Japanese market has suffered during the pandemic. But as of 2023, the market seems to be recovering. As a result, job prospects in Japan are good and growing.
This presents a great opportunity for job seekers who are proficient in Japanese to earn higher salaries. However, fluency in Japanese is not required if they have advanced skills such as English communication and technical knowledge.
The country also has a growing number of call center offshore operations.
Should you outsource to Japan?
Japan does not have extremely low wages.
But they have one of the highest per capita university stipends in the world and are known for their meticulous work ethic. In Japanese society, it is well known that white-collar workers work long hours and work hard.
All these factors make Japan an attractive outsourcing destination.
Hiring young professionals in Japan is relatively affordable. The minimum wage is 30,400 yen to 39,600 yen ($265 to $344) per month. But for more skilled specialists and more complex roles, personnel costs can increase significantly.
Yet, Japan is a possible opportunity for your outsourcing necessities.
You can browse this article to find the average income in Japan based on various factors. This can help you decide if outsourcing to Japan is right for your business.