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Japan has a unique salary structure, and understanding the average Japanese salary in yen is crucial for anyone considering a move to the country.
The average monthly salary in Japan is around ¥270,000 to ¥300,000, depending on factors such as age, experience, and industry.
In terms of hourly wages, the average hourly salary in Japan is approximately ¥1,500 to ¥2,000, although this can vary significantly depending on the type of job and industry.
Many Japanese employees receive bonuses, known as "en-kuri", which can add up to 30% of their annual salary, further increasing their overall compensation.
Key Statistics
The average salary in Japan is a fascinating topic, and there are some key statistics to keep in mind.
The average annual salary in Japan is 4,553,218 JPY per year, which translates to around 37,292 USD.
Average monthly salaries vary, but the Ministry of Health, Labour and Welfare reports that it's around 335,116 JPY.
You'll also find that the median salary in Japan is 472,000 JPY, which is a good benchmark for understanding the middle ground of salaries.
Consider reading: Japan Yen to Chf
Minimum wages in Japan are set at 1,004 JPY per hour, which is a relatively low rate compared to other countries.
Here's a quick rundown of some key salary figures in Japan:
Total cash earnings for all industries in Japan come out to 498,884 JPY, which is a significant figure to consider.
The average monthly income per household in Japan is 957,457 JPY, which is a good indicator of the country's overall economic health.
Salary by Category
In Japan, salaries can vary greatly depending on the industry and job role. For instance, the average total cash earnings for all industries in Japan is 498,884 JPY per month as of June 2024.
Here are some average salary ranges by category:
Some specific job roles and their average salaries include: Applications Engineer (¥452,000), Big Data Architect (¥606,000), and Doctor (¥1,350,000).
Take a look at this: 300000 Japanese Yen to Usd
By Education Level
Salary by education level is a significant factor in Japan, with average salaries varying greatly depending on the level of education. The Ministry of Health, Labour and Welfare reports that the average contractual salary for all industries and employees is 346,700 JPY per month.
For those with lower levels of education, the average salary is relatively low. Graduates of junior high schools earn an average of 308,100 JPY per month, while graduates of senior high schools earn 312,000 JPY.
Professional training colleges and upper secondary specialized training schools and junior colleges also have average salaries below 400,000 JPY. Graduates of these institutions earn 325,800 JPY and 318,700 JPY, respectively.
Higher education levels, on the other hand, lead to significantly higher average salaries. Graduates of universities earn an average of 398,300 JPY per month, while those with graduate degrees earn a whopping 511,500 JPY.
Here's a breakdown of the average salaries by education level:
It's worth noting that these figures are averages, and actual salaries can vary significantly depending on the industry, company, and individual performance.
By Age
If you're considering a job in Japan, understanding how salaries change with age is crucial.
In Japan, the concept of lifetime employment and seniority-based salary is deeply ingrained. This means that salaries increase gradually with experience and age.
The average starting salary for young job seekers in Japan is relatively low, around 206,000 JPY per month for those 19 and under.
As employees gain experience, their salaries increase, with 20-24 year olds earning an average of 247,700 JPY per month and 25-29 year olds earning 289,800 JPY per month.
Here's a breakdown of average salaries in Japan by age:
In the 20s, Japanese employees can expect to earn around 3.4 million JPY per year, with men earning slightly more than women.
Income by Industry
Japan's job market is highly competitive, and salaries can vary greatly depending on the industry. The average total cash earnings for all industries in Japan is 498,884 JPY per month, but this number can fluctuate based on the specific industry.
In Japan, certain industries tend to offer higher salaries than others. According to the data, the top industries for salaries in Japan are:
- Medical and Health Care: The average annual salary in this industry is 10,300,000 JPY (66,218 USD).
- Science and Technical Services: The average annual salary in this industry is 8,990,000 JPY (57,796 USD).
- Real Estate: The average annual salary in this industry is 7,580,000 JPY (48,731 USD).
- Education: The average annual salary in this industry is 7,220,000 JPY (46,417 USD).
- Finance and Accounting: The average annual salary in this industry is 7,150,000 JPY (45,967 USD).
Here is a breakdown of the average salaries in Japan based on industry:
These numbers can provide a general idea of what to expect in terms of salary based on industry. However, it's essential to consider the specific dynamics and demands of the industry when evaluating salary expectations.
Full-Time Workers
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In Japan, the average salary for full-time workers varies greatly depending on their education level. According to the Ministry of Health, Labour and Welfare 2023 data, graduates of universities earn an average of 398,300 JPY per month, while those with a graduate degree earn 511,500 JPY per month.
The number of years of experience also plays a significant role in determining salaries. Generally, individuals with more experience in a particular field are rewarded with higher salaries. For example, employees with 5-10 years of experience can expect a 36% higher salary than those with 0-5 years of experience.
As employees gain more experience, their salaries continue to increase. In fact, the average salary for employees in Japan peaks at 402,800 JPY per month for those between 55-59 years old. However, after that, salaries start to decrease, with employees between 60-64 years old earning an average of 324,400 JPY per month.
Here's a breakdown of the average salary in Japan by age:
Salary Trends and Growth
Salary growth in Japan has been steady over the past few years, with average contractual salary increasing by around 1.3% annually.
The trend is expected to continue in 2024 as Japan’s biggest companies have agreed to a 5.28% wage increase, the highest in 33 years. This big increase is to address economic challenges and to compensate workers for inflation and other financial burdens.
Employees in Japan receive an average salary increment of about 8% every 16 months, which may vary based on industry and experience level.
The average pay in Japan exhibits regional disparities influenced by factors such as job location, work experience, and education level. The monthly salary (average) in Japan is around 515,000 Japanese Yen (JPY), equivalent to approximately 3,794 US Dollars (USD), which includes the basic salary and additional benefits such as housing and transport.
The average income trend in Japan shows that the average salary in 2019 was ¥4,364,000 ($40,426), which was the first decrease in seven years.
Growth
In Japan, salary growth has been steady over the past few years, with average contractual salary increasing by around 1.3% annually.
This steady growth is evident in the numbers, where the average salary went up from 330,600 JPY in 2021 to 334,800 JPY in 2022, and then to 340,100 JPY in 2023.
The trend is expected to continue in 2024, with Japan's biggest companies agreeing to a 5.28% wage increase, the highest in 33 years.
This significant increase is a response to economic challenges and to compensate workers for inflation and other financial burdens.
Annual Incremental Rate
In Japan, the annual incremental rate is a crucial aspect of salary growth. On average, employees receive a salary increment of about 8% every 16 months.
This 16-month period is due to the fact that performance evaluations don't always happen exactly once a year. The increment may vary based on industry and experience level.
Companies in Japan have agreed to a 5.28% wage increase, the highest in 33 years, to address economic challenges and compensate workers for inflation and other financial burdens. This big increase is expected to continue in 2024.
The annual increment rate can be affected by experience and industry. For instance, employees with more experience may receive a higher salary increment to encourage them to stay with the company.
Here's a breakdown of the annual increment rates across different industries and experience levels in Japan:
Note that these rates are based on industry and experience level, and actual increments may vary.
Income Trend
The income trend in Japan is a story of steady growth, with some fluctuations along the way. The average salary in Japan has been steadily increasing over the past few years, with a 1.3% annual growth rate.
In 2021, the average contractual salary was 330,600 JPY, which rose to 334,800 JPY in 2022, and 340,100 JPY in 2023. This trend is expected to continue in 2024 with a significant 5.28% wage increase, the highest in 33 years.
Japan's National Tax Agency reports that the average salary in 2019 was ¥4,364,000 ($40,426), marking the first decrease in seven years. This drop was attributed to decreasing salaries at companies with 100 and fewer employees.
Related reading: 100 Japanese Yen to Myr
After a decade-long "salary slump" that reached its low point in 2009, salaries have now more or less recovered to their pre-crisis levels.
Here's a breakdown of the average income in Japan by age:
Japanese graduates start their first job in their early 20s, with a strong increase in income of around 30% in the late 20s. The income distribution among employees in their 20s is highly concentrated around ¥3,000,000 per year.
Factors Affecting Salaries
Factors affecting salaries in Japan are complex and multifaceted. Education level is a significant factor, with university graduates earning an average of 398,300 JPY per month, while those with advanced degrees make around 511,500 JPY.
Industry and occupation also play a crucial role, with employees in the electricity, gas, heat supply, and water sectors earning the highest average monthly salary at 1,111,379 JPY. In contrast, workers in accommodations and food services earn significantly less, averaging 152,243 JPY per month.
Work experience and age are closely tied to salary increases, with younger workers earning lower salaries compared to their more seasoned counterparts. In large companies, the peak monthly wage is 483,800 JPY for males aged 55-59 and 305,200 JPY for female workers aged 50-54.
Company size and employment type also influence salary levels, with employees in large corporations typically receiving higher salaries and more benefits than those in smaller firms. Full-time workers earn more than part-time employees, with the peak hourly wage for part-time male workers being 2,438 JPY (ages 35-39).
Regional differences in Japan also impact salary levels, with salaries being generally higher in major cities like Tokyo due to the higher cost of living and the presence of well-paying industries.
Here's a breakdown of average salaries by education level:
Lifetime employment (Shūshin Koyō) and seniority-based pay systems also affect salary progression and job stability, with initial salaries often being lower but rising as employees advance through the ranks.
The average salary increment in Japan is typically about 8% every 16 months, though this can vary based on industry and experience.
Salary Comparison
The average Japanese salary in yen can vary greatly depending on factors like location, industry, and experience.
In Tokyo, the average salary is around ¥5 million per year, which is significantly higher than the national average.
The salary for a new graduate in Japan is typically around ¥2.5 million per year.
In contrast, a senior manager in Tokyo can earn upwards of ¥15 million per year.
The highest paying industries in Japan are finance and technology, with average salaries ranging from ¥6 million to ¥10 million per year.
Overall, salaries in Japan tend to be higher in major cities like Tokyo and Osaka.
Salary Details
The lowest minimum wage in Japan is around ¥663 per hour, but this varies by industry and location. The highest minimum wage is in Tokyo, with an hourly wage of around ¥1,113.
The average monthly salary for people working in Japan can range from around 130,000 Japanese Yen (958 USD) to 2,300,000 JPY (16,944 USD). This is a significant range, with the upper end representing the highest average salary, not the maximum that someone can earn.
Here is a breakdown of the top 10 prefectural minimum wages in Japan:
Some of the lowest-paying jobs in Japan include waiters, customer service representatives, and retail cashiers, with average monthly salaries ranging from ¥163,000 to ¥207,000.
More Details
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If you're trying to figure out your net income in Japan, it's essential to look into the tax system. Taxes have been rising, but they're still relatively low.
The median salary in Japan is around 472,000 JPY (3,226.90 USD), which is a good benchmark to understand salary expectations. This figure is based on data from SalaryExplorer.
The average monthly salary for employees in Japan can range from approximately 130,000 JPY (835 USD) to 2,300,000 JPY (14,771 USD). Keep in mind that the upper range represents the highest average salary, not the maximum that someone can earn.
To get a better understanding of salaries at specific companies, you can check out Japanese company review sites like OpenWork. On these sites, users share their positions, income, and additional information about their experiences.
Here's a rough breakdown of the salary range in Japan:
Minimum
The minimum wage in Japan is a crucial aspect to consider when budgeting or hiring employees. The national average minimum wage is 1,004 JPY per hour as of 2023.
The minimum wage is adjusted annually, and in 2024, it will see its highest-ever increase of 50 JPY, raising the national average from 1,004 JPY to 1,054 JPY.
The new minimum hourly wage will vary by prefecture, ranging from 1,076 JPY in Chiba to 1,163 JPY in Tokyo. Twelve prefectures in the Tōhoku, Kyūshū/Okinawa, and Shikoku regions will still have minimum wages below 950 JPY.
Here is a breakdown of the new minimum hourly wage in Japan by prefecture:
The minimum wage in Japan is not decided at a national level but is set by each prefecture, resulting in varying rates across the country.
Salary by Type of Worker
Software engineers in Japan can expect an average annual salary of ¥6,170,000, or ¥2,970 per hour.
Healthcare professionals, on the other hand, tend to earn more, with an average annual salary of ¥9,210,000, or ¥4,430 per hour.
In the IT industry, information technology professionals earn an average annual salary of ¥6,360,000, or ¥3,060 per hour.
Human resources professionals in Japan earn an average annual salary of ¥5,950,000, or ¥2,860 per hour.
Here's a breakdown of average salaries for various job profiles in Japan:
Keep in mind that these figures are averages, and actual salaries can vary depending on factors such as location, experience, and industry.
Frequently Asked Questions
Is 6M yen a good salary in Japan?
While 6M yen can be considered a normal salary for an engineer in a traditional Japanese software company, its competitiveness is decreasing as more people become unwilling to accept it. The salary's value depends on various factors, including individual circumstances and industry standards.
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