What Is The Average Salary in Japan? (Updated For 2025)

Are you thinking about starting a new career in Japan? Understanding the country’s job market (and finding a better job) demands insight into industry trends. But your most important question is probably, what is the average salary in Japan?

Data from Japan’s National Tax Agency and the Ministry of Health, Labor and Welfare suggest that, in 2025, the average salary in Japan is ¥4.60 million, approximately $29,374. However, the median is likely closer to ¥3.96 million, equivalent to $25,313.

But how do salaries differ across various sectors? Do factors like age or gender influence earnings? Let’s dive into the specifics, from English teaching to IT and finance.

Average Annual Salary in Japan

According to the NTA Survey on Private Sector Salary 2023, full-time workers in Japan earn a monthly salary of around ¥318,300 before taxes, assuming we follow the average of ¥4.60 million. Several factors influence actual incomes, including age and experience.

If any of these salaries feel too low for you, that’s because they probably are. You should absolutely evaluate your skills and not let anyone lowball you.

Keep in mind that workers in major cities like Tokyo typically earn more than those in rural areas, reflecting the higher cost of living in urban centers. Salaries also depend heavily on industry and role, with fields like tech, finance and engineering offering some of the highest paychecks.

Average Salary By Industry

Let’s examine Japan’s average and median annual salaries across various industries, using data from the National Tax Agency’s 2021 Private Sector Salary Statistics Survey and the Ministry of Health, Labor and Welfare’s Overview of Basic Wage Structure Survey for 2021.

What Is The Median Salary in Japan?

When it comes to understanding salaries in Japan, it’s important to look beyond averages to get a clearer picture. While the average annual income of Japanese workers is around ¥4.60 million, according to the National Tax Agency’s 2023 survey, the median annual income—the midpoint of all salaries—comes in lower at ¥3.96 million. This means the median is approximately 86% of the average, reflecting the influence of high earners on the national average.

The “average salary” is calculated by dividing the total salaries by the number of people, but it can be skewed by high earners, like a CEO, inflating the figure. Job sites often use averages, but these can be misleading due to outliers—often to trick or entice potential job seekers. The median figure is a more realistic benchmark for what a typical worker in Japan earns, particularly when planning your career or negotiating your salary.

It’s also important to note that a chunk of the median data takes into account a yearly bonus. In another report by the Ministry of Health, Labor and Welfare’s Overview of the Basic Survey on Wage Structure in 2022, the median monthly wage in Japan is about ¥270,000, which amounts to ¥3.24 million annually. Adding the average bonus of ¥720,000, the total median annual income comes to approximately ¥3.96 million.

Note: Many websites report that the median salary in Japan is ¥472,000. I have no idea where this figure is coming from, but it is simply too high for the vast majority of people living in Japan.

Average Salary By Age in Japan

Many Japanese companies have a traditional seniority-based pay system, in which employees are compensated based on their years of service rather than their individual performance or qualifications. As employees age and accumulate more experience within the company, they typically receive salary increases and bonuses, leading to higher annual incomes. This system often results in older employees earning higher salaries than younger colleagues. 

However, you’ll notice the salary decreases around retirement. As employees approach retirement age, their salaries may decrease to offset the costs of providing retirement benefits, or employees may accept lower wages if their pension alone isn’t sufficient to support them.

Why Are There Gender Pay Gaps in Japan?

You’ll also notice gender gaps. Women in Japan often face challenges such as occupational segregation, limited career advancement opportunities and traditional gender roles that prioritize family responsibilities over career advancement. 

According to the Organization for Economic Cooperation and Development (OECD), Japan’s gender wage gap stood at 22.1% as of 2022, ranking it fourth lowest among 38 OECD countries.

Likewise, Japan’s work culture has traditionally stressed long working hours and dedication to the job, particularly for men. This can result in higher salaries for male employees willing to commit significant time and effort to their careers. Thus, women may face challenges balancing work and family responsibilities, impacting their earning potential.

What Is The Average Salary For Foreign Workers in Japan?

When it comes to salaries for foreign workers in Japan, the numbers tell an important story. According to the Ministry of Health, Labor and Welfare’s 2023 Basic Survey on Wage Structure, the average monthly salary for foreigners in Japan is ¥232,600—significantly lower than the national average of ¥318,300. This difference of ¥85,700 highlights a gap between foreign and Japanese workers.

The main reason for this disparity lies in the demographics and career patterns of foreign workers. Many foreigners in Japan are young professionals, often in their 30s or younger, who come to gain skills, advance their careers, or earn higher incomes than in their home countries. With shorter average tenure and age compared to Japanese workers, foreign employees typically fall into lower salary brackets. Since Japan’s salary structure rewards longevity and experience, this creates a noticeable difference in average income levels.

If you’re a foreign worker, your salary in Japan will often depend on your visa status and job type. For example:

• Specialized or Technical Work Visas: These roles, like language teachers, offer average monthly salaries of around ¥297,000.
• Technical Intern Training Program: Participants in this program earn significantly less, with an average monthly pay of about ¥182,000.

It’s worth noting that foreign workers in specialized roles often earn competitive salaries, especially if they bring unique skills or advanced degrees. However, those in entry-level or manual labor jobs may find wages lower than the national average.

How Bonuses Affect Salary in Japan

In Japan, companies often give out bonuses twice yearly, called the 13th and 14th month pay. These bonuses usually come around in the summer and winter. Unfortunately, they aren’t always guaranteed or even fixed amounts. Instead, they depend on how well the company is doing financially, how you and your team are performing, what industry you’re in, and the type of work you do. For example, if the sales team doesn’t meet their target, it might mean a substantially lower bonus amount.

According to a 2016 survey by The Japanese Ministry of Labor, the nationwide average annual salary bonus in Japan was ¥671,800 ($4,327). The median was ¥576,000 ($3,698).

 Below are the top 15 jobs with the highest bonuses in Japan:

What Is The Minimum Wage in Japan?

In Japan, the minimum wage is determined by each prefecture and revised annually by the Minimum Wage Council. Depending on the prefecture, the minimum wage is ¥952 to ¥1,163. The Minimum Wage Council, composed of representatives from the public, labor, and employers (with RENGO representing labor), deliberates on raising the minimum wage each year.

There are two types of minimum wages: regional minimum wages, set by prefectures, and specific minimum wages, set for certain industries. As of October 2024, the national average was ¥1,055 per hour.

What’s The Average English Teacher’s Salary in Japan?

• The average annual salary for English conversation teachers is ¥3.46 million.
• English teaching salaries tend to be low compared to national averages.
• Average monthly salary: ¥290,000; starting salary: ¥230,000.
• Part-time: ¥1,597/hour; temporary: ¥1,444/hour.
• Consider higher education, private school, or freelance work for higher earning aspirations.

If you’re working in an eikawa (English language school) or as an ALT (Assistant Language Teacher) and wondering why your salary falls short of the median in the education industry, I feel you. Teacher salaries, in general, are not good, but English teaching salaries are below the national average.

On average, English conversation teachers earn around ¥3.46 million annually. The typical monthly salary is ¥290,000. Part-time and temporary employees earn an average hourly wage of ¥1,597 and ¥1,444, respectively.

Annual bonuses aren’t typically part of the package for English teachers and ALTs. However, a bonus might be given upon completion of your contract, usually equivalent to one month’s pay.

While many individuals may not view English teaching as a long-term career, if you’re passionate about and aspire to earn a higher salary, you should consider higher education, working directly at private schools or even freelance.

Salary Trends in Japan For 2025

Wages in Japan are slowly on the rise. In recent years, major companies have been increasing pay to combat decades of stagnant wages and rising inflation. For instance, large firms are expected to raise salaries by an average of 4.74% in 2025, signaling a shift toward better compensation. However, the majority of workers are still struggling. In fact, the majority of workers haven’t seen a pay increase in 30 years.

Nevertheless, Japan is actively implementing policies to attract foreign talent, aiming to address labor shortages and stimulate economic growth. The government plans to welcome 820,000 skilled foreign workers over the next five years. This initiative includes expanding the list of qualified occupations for the Working Holiday Visa program and introducing new visas for skilled workers.

Tokyo and other metropolitan areas are hot spots for higher-paying jobs, especially in industries like tech and finance. If you’re aiming for a career with good pay, consider opportunities in these urban centers. That said, rural areas can offer a lower cost of living, which might balance out slightly lower salaries—especially if you are vying for remote work.

What do you think of salaries in Japan? Too low? What needs to improve? Let us know in the comments!

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• RICHARD NYONI says:

  September 14, 2024 at 8:39 am

  Hello,i want to know the chances of an African getting a teaching job in Japan and the requirements