Average Salary in Japan 2024
In 2024, the average annual salary in Japan is 4,553,218 JPY, which equals to 30,993 USD, while the average Japanese salary per month is 335 116 JPY h, which equals to about 2,230 USD.
This article will break down how average salary in Japan varies by industry, region, age or gender so you can get a full picture of earnings in Japan.
Key takeaways
- Average annual salary in Japan: 4,553,218 JPY per year (37,292 USD), source: OECD.
- Average monthly salary in Japan: 335 116 JPY, source: Ministry of Health, Labour and Welfare.
- Median salary in Japan: 472,000 JPY (3,226.90 USD)
- Minimum wages in Japan: 1,004 JPY per hour (6.86 USD)
- Total cash earnings, all industries: 498,884 JPY (3,412 USD), source: Ministry of Health, Labour and Welfare.
- The average monthly income per household: 957,457 JPY (3,409 USD)
- Average income per household: 5,457,000 JPY (37,292 USD), source: Ministry of Health, Labour and Welfare.
Average wage in Japan
As of May 2024, the average monthly wage in Japan is 335,116 JPY (approximately $2,275), according to the Ministry of Health, Labour and Welfare. This is the overall figure but varies by industry, region, age, and gender.
For example, the average salary in the electricity, gas, heat supply, and water industry is the highest, and the lowest in the accommodations and food services industry. Regional differences also apply; urban areas like Tokyo have higher wages.
Salary range
Understanding the salary range is crucial, as it can vary from approximately 130,000 JPY to 2,300,000 JPY, with the upper limit reflecting the highest average salary rather than the maximum potential earnings.
Also, educational attainment and seniority affect the earnings, higher degree means higher salary. Despite overall modest salary growth, Japan still has a big gender pay gap and region-specific wage disparities.
(Source: SalaryExplorer.com)
Minimum salary in Japan
In Japan, the Minimum Wage Law sets both a national and regional rates, adjusted every year. As of 2023, the national average minimum wage is 1,004 JPY per hour. Understanding the minimum salary ranges is crucial for budgeting and hiring decisions, as these ranges can vary significantly based on experience and role complexity.
According to Mercer’s 2023 Total Remuneration Survey, Japan’s projected salary increase for 2024 is lower than average at 2.6%.
However, the minimum wage in Japan will see its highest-ever increase of 50 JPY around October 2024. It will be raised from the national average of 1,004 JPY to 1,054 JPY (Source: Nippon.com).
- The new rates will vary by prefecture: 1,163 JPY in Tokyo, 1,162 JPY in Kanagawa, 1,114 JPY in Osaka, 1,078 JPY in Saitama, 1,077 JPY in Aichi, and 1,076 JPY in Chiba. Twelve prefectures in Tōhoku, Kyūshū/Okinawa, and Shikoku regions will still have minimal wages below 950 JPY.
The new minimum hourly wage in Japan:
| New minimum hourly wage | Prefecture |
| 1,163 JPY | Tokyo |
| 1,162 JPY | Kanagawa |
| 1,114 JPY | Osaka |
| 1,078 JPY | Saitama |
| 1,077 JPY | Aichi |
| 1,076 JPY | Chiba |
Median salary in Japan
According to SalaryExplorer, the median salary in Japan is 472,000 JPY (3,226.90 USD).
The median salary represents the midpoint of the salary distribution, where half of the working population earns more and half earns less. Understanding salary expectations and hiring practices is crucial.
(Source: SalaryExplorer.com)
Various factors affecting average salary in Japan
- Education level: In Japan, educational attainment significantly influences salary levels. University graduates earn an average salary of 398,300 JPY per month, while those with advanced degrees make on average about 511,500 JPY. In contrast, junior high school graduates earn around 308,100 JPY, and high school graduates earn approximately 312,000 JPY per month. The job-hunting process known as Shūkatsu emphasizes academic credentials, often resulting in higher starting salaries for graduates from prestigious institutions (Source: Basic Survey on Wage Structure).
- Industry and occupation: Salaries vary widely across industries and occupations due to differing skill demands and industry profitability. Japan employees in the electricity, gas, heat supply, and water sectors earn the highest average monthly salary at 1,111,379 JPY, followed by those in finance and insurance with 1,012,585 JPY. Conversely, workers in accommodations and food services earn significantly less, averaging 152,243 JPY per month.
- Work experience and age: In Japan, salary increases are closely tied to work experience and age. For example, 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, reflecting the impact of seniority. Generally, younger workers with less experience earn lower salaries compared to their more seasoned counterparts.
- Company size and employment type: Salary levels are influenced by company size and employment type. Employees in large corporations typically receive higher salaries and more benefits than those in smaller firms. Additionally, full-time workers earn more than part-time employees; for instance, the peak hourly wage for part-time male workers is 2,438 JPY (ages 35-39), and 1,457 JPY for part-time females (ages 30-34).
- Lifetime employment (終身雇用, Shūshin Koyō): The Japanese practice of Shūshin Koyō, or lifetime employment, affects salary progression and job stability. While initial salaries may be lower, long-term employment with the same company usually leads to higher wages and greater job security. Salary increases are often based on length of service, with pay rising as employees advance through the ranks.
- Regional differences: Geographic location significantly impacts salary levels in Japan. Salaries are generally higher in major cities like Tokyo due to the higher cost of living and the presence of well-paying industries. Metropolitan regions exhibit higher average salaries compared to rural regions, reflecting the economic disparity between urban and rural locations.
- Average salary increment: The average salary increment in Japan is typically about 8% every 16 months, though this can vary based on industry and experience. Yearly appraisals are infrequent, and salary increases often correlate with experience levels, incentivizing employee retention.
Average salary in Japan by region
In Japan, the average salary varies significantly by region due to differences in cost of living, economic activities, and industry concentration. When considering the average salary Japan offers, here’s a general breakdown:
| Region | Overview |
| Tokyo Metropolitan Area | This region, including Tokyo and its surrounding prefectures like Kanagawa, Saitama, and Chiba, has the highest salary in Japan. The concentration of multinational corporations, financial institutions, and high-tech industries drives up the wages. Cost of living is also the highest here, which affects the salary as well. |
| Osaka-Kobe-Kyoto Area | The Kansai region, with major cities like Osaka, Kobe, and Kyoto, has relatively high salary. This area is a major economic hub with strengths in manufacturing, commerce, and tourism. Salary here is lower than Tokyo but still competitive compared to other regions. |
| Nagoya | Located in the Chubu region, Nagoya is known for its automotive industry, with companies like Toyota having a significant presence. Salary here is generally high, reflecting the economic strength of the region. |
| Hokkaido | In northern Japan, Hokkaido tends to have lower average salary compared to the major metropolitan areas. The region’s economy is driven by agriculture, tourism, and some light manufacturing, which affects the overall salary. |
| Kyushu | Located in the Chubu region, Nagoya is known for its automotive industry, with companies like Toyota having a significant presence. Salary here is generally high, reflecting the economic strength of the region. |
| Okinawa | Okinawa, located in the southernmost part of Japan, has the lowest average salary among the major regions. The local economy is heavily dependent on tourism, which tends to offer lower wages than other sectors. |
Average salary by education level
According to the Ministry of Health, Labour and Welfare 2023 data, salary in Japan varies greatly according to education. For all industries and all employees, contractual salary is 346,700 JPY per month.
| Average salary | Education level |
| 308,100 JPY | Graduates of junior high schools |
| 312,000 JPY | Graduates of senior high schools |
| 325,800 JPY | Graduates of professional training colleges |
| 318,700 JPY | Graduates of Upper Secondary Specialized Training Schools and junior colleges |
| 398,300 JPY | Graduates of universities |
| 511,500 JPY | Graduates of graduate schools |
Gender differences are also seen: Male employees with all education levels earn 385,400 JPY, and female employees earn 280,700 JPY. This shows the financial benefit of higher education in Japan and the ongoing gender pay gap.
Additionally, the actual maximum salary for those with advanced degrees can significantly exceed these averages, highlighting the potential for substantial financial opportunities beyond the listed figures.
| Average salary | Education salary and gender |
| 385,400 JPY | Male employees – Total for all school careers |
| 280,700 JPY | Female employees – Total for all school careers |
- Interesting to know:
Shūkatsu (就活), the Japanese job-hunting process, is crucial as it largely determines a graduate’s career trajectory and long-term professional success. For many students, securing a job through Shūkatsu is not just about finding employment but about establishing a stable career path and gaining entry into reputable companies, which can significantly influence future opportunities and salary potential.
The process is highly competitive and formal, often creating significant stress and pressure. Students face intense scrutiny through rigorous interviews, extensive networking, and the challenge of differentiating themselves in a crowded field.
The emphasis on academic credentials and the need to secure a job offer before graduation adds to the pressure, making Shūkatsu a high-stakes and stressful experience that can impact both mental well-being and career prospects.
Average salary in Japan by age
Japan’s labor market is known for the concept of lifetime employment (終身雇用, shūshin koyō) and seniority-based salary. This cultural system affects salary growth throughout one’s career.
- Starting salary for young job seekers is relatively low, those 19 and under earn 206,000 JPY per month. As employees gain experience, salary increases gradually, 247,700 JPY for 20-24 and 289,800 JPY for 25-29.
- Salary continues to increase with age and experience, peaks at 399,200 JPY for 50-54 and 402,800 JPY for 55-59, after years of dedication and seniority.
- After that, salary starts to decrease, 324,400 JPY for 60-64, 284,600 JPY for 65-69 and 265,900 JPY for 70 and over.
This is usually when Japanese workers start to reduce their responsibilities and gradually transition to retirement. This is because of Japan’s culture of job stability and the increase in salary tied to long-term loyalty and tenure with one company.
(Source: Ministry of Health, Labour and Welfare)
Average salary in Japan by age
| Average salary | Age |
| 206 000 JPY | ～19 age |
| 247 700 JPY | 20～24 |
| 289 800 JPY | 25～29 |
| 319 400 JPY | 30～34 |
| 349 300 JPY | 35～39 |
| 370 400 JPY | 40～44 |
| 385 700 JPY | 45～49 |
| 399 200 JPY | 50～54 |
| 402 800 JPY | 55～59 |
| 324 400 JPY | 60～64 |
| 284 600 JPY | 65～69 |
| 265 900 JPY | 70 age～ |
Average salary in Japan by industry
As of June 2024, Japan’s average total cash earnings for all industries in Japan is 498,884 JPY per month. But varies greatly by industry (Source: MHLW):
Highest paying professions
The higher salaries are to be found in Electricity, Gas, Heat Supply and Water with average monthly salary of 1,111,379 JPY. Followed by Finance and Insurance 1,012,585 JPY and Information and Communications 932,805 JPY. Other high paying fields are Scientific Research, Professional and Technical Services 742,160 JPY and Real Estate and Goods Rental and Leasing 625,864 JPY.
Highest average salary industries:
| Average salary | Industry |
| 1,111,379 JPY | Electricity, Gas, Heat Supply and Water |
| 1,012,585 JPY | Finance and Insurance |
| 932,805 JPY | Information and Communications |
| 742,160 JPY | Scientific Research, Professional and Technical Services |
| 625,864 JPY | Real Estate and Goods Rental and Leasing |
Lowest paying professions
On the other hand, lowest average salary are in Accommodations, Eating and Drinking Services with average monthly salary of 152,243 JPY. Followed by Living-Related and Personal Services and Amusement Services 292,235 JPY and Wholesale and Retail Trade 386,031 JPY. Medical, Health Care and Welfare sector, despite being essential, has an average salary of 417,176 JPY, which means while important, it’s not as high as the other industries.
Lowest average salary are found in:
| Average salary | Industry |
| 152,243 JPY | Accommodations, Eating and Drinking Services |
| 292,235 JPY | Living-Related and Personal Services and Amusement Services |
| 386,031 JPY | Wholesale and Retail Trade |
| 417,176 JPY | Medical, Health Care and Welfare |
Gender gap in the Japanese job market
Japan is ranked 118th in the World Economic Forum’s Global Gender Gap Report 2024 with an overall gender parity score of 66.3, up from the previous year.
Although there is some progress, the gender pay gap is 21.35%. Women hold only 14.6% of top management positions and 15.5% of board seats, which means there is still a long way to go to achieve gender equality in top positions.
Japan has moved up 7 places from 2023. The country still has a 56.8% economic gender gap, which means there are still big obstacles to equal pay and career advancement.
Compared to neighboring countries, China (106th) and South Korea (100th) are slightly better, while the US is 43rd, which means there is still a lot of work to be done to address gender gap in the Japanese labor market.
Salary growth in Japan
Salary growth in Japan has been steady over the past few years, with average contractual salary increasing by around 1.3% annually. Salary went up from 330,600 JPY in 2021 to 334,800 JPY in 2022, 340,100 JPY in 2022 and 346,700 JPY in 2023 (Source).
This trend is expected to continue in 2024 as Japan’s biggest companies has agreed to a 5.28% wage increase, the highest in 33 years according to Reuters.
This big increase is to address economic challenges and to compensate workers for inflation and other financial burdens.
Comparison to other countries
Japan’s average monthly salary is 346,700 JPY (around $2,400 USD). Japan is in the middle of the pack in the global market. Compared to high-income countries like the US where average weekly salary is $1,200.50 (around $62,426 annually) and Germany where average annual salary is €50,250 (around $55,000 USD), Japan’s average salary is lower.
On the other hand, Japan’s average salary is higher than many emerging markets like China where average monthly salary is around ¥6,750 CNY (around $950 USD).
In South Korea, average monthly salary is around ₩3,500,000 KRW (around $3,000 USD) which is slightly higher than Japan. Japan’s salary structure is based on long-term employment and seniority-based pay increases, which is different from the more flexible and diverse wage system in countries like US and Germany.
Also, Japan’s low wage growth even with recent record high pay and big gender pay gap is what makes Japan unique in the global labor market.
FAQ
What is the average income in Japan?
The average monthly salary in Japan is 335,116 JPY, which is approximately 2,275.40 USD.
What is considered a good salary in Japan?
A good salary in Japan is typically considered to be above the average. For instance, the electricity, gas, heat supply, and water sectors have a high average salary of 1,111,379 JPY per month, while individuals in finance and insurance earn about 1,012,585 JPY per month.
What is the highest paid job in Japan?
The highest-paid jobs are in the electricity, gas, heat supply, and water sectors, with an average monthly salary of 1,111,379 JPY.
How much is Japan salary per hour?
The average salary per hour is determined by the minimum wage, which is 1,004 JPY per hour as of 2023. However, rates vary by region, with Tokyo having the highest minimum wage of 1,163 JPY per hour starting October 2024.
What is the minimum wage in Japan in USD?
The national average minimum wage is 1,004 JPY per hour, which converts to approximately $6.85 USD based on the exchange rate. Note that this value can vary slightly depending on the current exchange rate.
Is 6 million yen a good salary in Tokyo?
While 6 million yen is a decent salary and would be considered good in many parts of Japan, it may not stretch as far in Tokyo given the city’s high living costs and competitive salary market.
What is the average salary in Japan?
As of May 2024, the average monthly salary in Japan is 335,116 JPY, which is approximately $2,275.40 USD.
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