What is the average salary in Japan for foreigners? (2023)

The most important consideration when deciding where to work is how much can you earn? For those thinking of working in Japan, you must be thinking “What is the average salary in Japan for foreigners?”

In this article, we answer that question and more including “What is the minimum wage in Japan?” “How much does the average Japanese earn?” and “How to read Japanese salary slips? What do all these Kanji mean?”. 

First Published : 2022/11/22
Updated : 2023/07/19

Table of Contents

1. Average Salary in Japan for Foreigners (2023)
2. Average Annual Income in Japan Overall (2023)
3. Minimum Wage in Japan (2023)
4. What affects your salary in Japan?
5. How to Read Salary Slips in Japan
6. Find a Job in Japan with WeXpats

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Average Salary in Japan for Foreigners (2023)

According to the Ministry of Health, Labor and Welfare's latest “Basic Wage Structure Statistical Survey 2022 (released 26 July, 2023)”, the average salary in Japan for foreigners is 2,980,800 yen annual income, or 248,400 yen per month. 

Compared to the average annual income of 2,737,200 yen, or 228,100 yen per month, in the previous year (2022), the average annual income in 2022 has increased a great amount. 

There is quite a big difference in average annual income as compared to Japanese workers who have an average annual income of 3,741,600 yen. The reason for this is because the average age of foreign workers is lower, and their length of service is shorter than that of Japanese workers. 

What is the average age and length of service in Japan?

• For Japanese workers, the average age is 43.7 years old, and their average length of service is 12.3 years.

• For foreign workers in Japan, the average age of foreign workers in Japan is 34.1 years old, and their average length of service is 3.6 years. 

In Japan, promotions called 社内昇進 (shanai shoushin), are largely based on seniority. This means that the longer you’ve been at a company, the higher your position, and therefore the better your income. At the same time, your age also usually becomes a factor, resulting in a gap in average annual income between foreigners and Japanese workers as shown in the survey. 

By Status of Residence

The average salary in Japan for foreigners by status of residence is as follows.

【Average Salary in Japan for Foreigners by Status of Residence】

(average annual income amounts are approximate figures)

• Professional / Technical (excluding SSW) : 3,595,200 yen (299,600 yen per month)
• Permanent Resident / Spouse of Japanese National, etc. : 3,368,400 yen (280,700 yen per month)
• Specified Skilled Worker : 2,468,400 yen (205,700 yen per month)
• Technical Intern : 2,133,600 yen (177,800 yen per month)
• Others (permission to engage in other activities) : 2,6450,800 yen (220,900 yen per month)

Compared to the previous year 2022, aside from Professional/Technical visa holders whose average salary has dropped significantly (previously 326,500 yen per month), the other types of status of residence have shown a considerable rise in average salary. Especially for Technical Interns whose annual income now exceeds 2 million yen and Specified Skilled Workers whose average monthly salary increased by over 10,000 yen a month. 

※ MHLW, “令和3・4年賃金構造基本統計調査” 

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Average Annual Income in Japan (2023)

According to the Ministry of Health, Labor and Welfare's latest “Basic Wage Structure Statistical Survey 2022 (released 26 July, 2023)”, the average annual income of full-time workers in Japan in 2022 is approximately 3,741,600 yen, or 311,800 yen per month. 

Compared to the average annual income of 3,688,800 yen yen, or 307,400 yen per month in the previous year (2022), the average annual income in 2022 has shown an increase. In 2021, the average annual income had actually decreased slightly from 2020 because of the stagnation of economic activity due to the pandemic. As the situation post-coranivurs improves, there is hope for the average annual income to go towards an upward trend.

What is a full-time worker in Japan? 

In Japan, as defined by the Ministry of Health, Labour and Welfare, a full-time worker (一般労働者 ippan roudousha) means regular workers who are employed for an indefinite period of time, or for a period of 1 month or longer, but excludes short time workers (短時間労働者 tanjikan roudousha). 

※ MHLW, “令和３・４年賃金構造基本統計調査　結果の概況：主な用語の定義” 

Below, we will further introduce and explain the data on the average annual income in Japan divided by category. 

By Gender

The average annual income in Japan by gender in 2022 is 4,104,000 yen (342,000 yen per month) for men, and approximately 3,106,800 yen (258,900 yen per month) for women.

In Japan, many women choose to have irregular employment for the sake of marriage and childcare. In addition, the percentage of women in managerial positions is lower than that of men resulting in lower income. 

By Educational Background

The average annual income in Japan by educational background in 2022 is as follows. 

【Average Annual Income according to Highest Educational Attainment】

(amounts are approximate figures)

• High School：3,285,600 yen (273,800 yen per month)
• Vocational School：3,4530,400 yen (294,200 yen per month)
• Technical College / Junior College：3,4510,000 yen (292,500 yen per month)
• University： 4,353,600 yen (362,800 yen per month)
• Graduate School：5,570,400 yen (464,200 yen per month)

The same situation as in other countries, which is the higher education you’ve achieved, the higher your annual income tends to be. Of course, there are many people who have low educational backgrounds but high incomes as well. It is not uncommon for high school graduates to be recognized for their abilities and achievements, who earn annual incomes that are higher than university graduates. 

Note that, in Japan, more than 50% of Japanese students go to university, and as for university, the attendance rate rises to over 90%. 

Not sure about the higher education system in Japan, our article The Confusing University Education System in Japan explains all you need to know about the different types of higher education establishments in Japan. 

By Age

The average annual income in Japan by age in 2022 is as follows. 

【Average Annual Income in Japan by Age Group】

(amounts are approximate figures)

• Up to 19 years old：2,210,400 yen (184,200 yen per month)
• 20-24 years old：2,622,000 yen (218,500 yen per month)
• 25-29 years old：3,014,400 yen (251,200 yen per month)
• 30-34 years old：3,372,000 yen (281,000 yen per month)
• 35-39 years old：3,750,000 yen (312,500 yen per month) 
• 40-44 years old：4,004,400 yen (333,700 yen per month)
• 45-49 years old：4,190,400 yen (349,200 yen per month)
• 50-54 years old：4,376,400 yen (364,700 yen per month)
• 55-59 years old：4,440,000 yen (370,000 yen per month)
• 60-64 years old：3,547,200 yen (295,600 yen per month)
• 65-69 years old：3,091,200 yen (257,600 yen per month)
• 70 years and older：2,857,200 yen (238,100 yen per month)

In Japan, the prime working generation is considered to be around the age of 35~59. Looking at the data from MHLW’s survey, it can be observed that the average annual income increases steadily as age increases. The average annual income peaks at 55~59 years old, last year the peak was age range of 50~54 years old. At this age range, most people are in positions of higher responsibility, and are promoted to management positions in companies. It is noteworthy that majority of the average income up to the age range of 60~64 has increased in 2022, but for age range 65 to 70~ the average income has reduced compared to last year (2021). 

※ MHLW, “令和3年賃金構造基本統計調査”

Minimum Wage in Japan (2023)

As of October 1, 2022, the minimum wage (最低賃金 saitei chingin) in Japan was revised. In Japan, the minimum wage is different from area to area. The minimum wage is based on hourly wage (時給 jikyuu). For those whose salaries are calculated by the hour, usually part-timers and contract workers, it is important to know what your area’s minimum wage is. 

New Minimum Hourly Wage in Japan (as of October 2022)

To summarise the above table: 

• The average minimum wage in Japan (nationwide 47 prefectures) is 961 yen per hour. 
• The prefectures with minimum wage above the national average are Saitama, Chiba, Tokyo, Kanagawa, Aichi, Kyoto, and Osaka. 
• The prefecture with the highest minimum wage is Tokyo (1072 yen per hour).
• Prefectures with the lowest minimum wage are Aomori, Akita, Ehime, Kochi, Saga, Nagasaki, Kumamoto, Miyazaki, Kagoshima, and Okinawa (853 yen per hour). Previously, the prefectures with the lowest minimum wage were Kochi and Okinawa.

※ MHLW, “地域別最低賃金の全国一覧”

What affects your salary in Japan?

Looking at the Ministry of Health, Labour, and Welfare’s annual “Basic Wage Structure Statistical Surveys (賃金構造基本統計調査)”, the results are published in several categories. These categories can be said to be the biggest factors affecting salary in Japan. 

Factors that Affect Salary in Japan

• Gender
• Educational Background
• Company / Corporation Size
• Industry
• Employment Type
• Position
• Location

You can check the average annual income in Japan by the factors/categories above in the link below. 

※ e-Stat, “賃金構造基本統計調査”

How to Read Salary Slips in Japan

Salary slips or payslips are called「給与明細 kyuuyo meisai」in Japanese. In Japan, payslips are issued on paper or electronically whenever salary is paid. Not only the amount of salary paid, but other information such as amount deducted and number of days worked are written down in detail and separated into many categories, so many people find it difficult to understand their payslip. 

In this part, we will explain how to read Japanese salary slips. Note that the format of salary slips may differ from company to company. 

Categories for Days Worked and Overtime 

The「勤怠 kintai」section is where the number of days and hours worked, paid leave, absents, etc. are written. Kintai means “attendance and absence” in relation to work. 

• 就業日数 / shuugyou nissu / working days : number of working days in the month as determined by the company

• 出勤日数 / shukkin nissu / days worked : number of actual days worked in the month

• 欠勤日数 / kekkin nisuu / days absent : number of days absent in the month (unpaid leave)

• 遅刻日数 / chikoku nissu / days late : number of days late to work in the month

• 早退日数 / soutai nissu / days left early : number of days when left work early in the month

• 有給消化日数 / yuukyuu shouka nissu / paid leave used : number of paid leave taken in the month

• 有給残 / yuukyuu zan / remaining paid leave : remaining number of usable paid leave 

• 勤務時間 / kinmu jikan / working hours : number of hours worked in the month

• 普通残業時間 / futsuu zangyou jikan / overtime hours : number of hours of overtime in the month 

• 休日出勤時間 / kyuujitsu shukkin jikan / holiday work : number of hours worked on a statutory holiday in the month

[Important] Be sure to check that you have been paid for any overtime done, as well as no deductions for days you took paid leave! 

Categories for Salary Payment 

The「支給 shikyuu」section is where the base salary, allowances, overtime, etc. are written. Shikyuu can mean many things in Japanese, including payment, grant and allowance. 

• 基本給 / kihonkyuu / base salary : the basic wage paid by the company for the month

• 通勤手当 / tsuukin teate / commute allowance : allowance for commute to work (bus fare, train fare, commute pass, etc.)

• 住宅手当 / juutaku teate / housing allowance : allowance for rent, mortgage, etc. 

• 役職手当 / yakushoku teate / executive allowance : allowance for performance of certain roles and responsibilities in the company

• 残業手当 / zangyou teate / overtime pay : pay for overtime work in the month

• 資格手当 / shikaku teate / qualification allowance : allowance for acquiring qualification / certification

• 深夜勤務手当 / shinya kinmu teate / late-night work pay : additional pay for working between 22:00~05:00 of the next day (additional 25% or more of base salary as stipulated by law )

• 法定休日手当 / houtei kyuujitsu teate / statutory holiday pay: additional pay for working on legal holidays (additional 35% or more of base salary as stipulated by law)

The type of allowance provided varies from company to company. In addition to the allowances introduced above, some companies also provide “quit smoking allowance (禁煙手当 kinen teate)” to encourage employees to practise healthy lifestyles, or “meal allowance (食事手当 shokuji teate)” to subsidise lunch expenses. 

Categories for Salary Deductions

The「控除 koujo」section is where salary deductions are written. In Japan, pension, health insurance premiums, and income taxes are generally deducted from company employees’ salaries. The take-home pay is salary payments after deductions. 

• 健康保険 / kenkou hoken / health insurance : insurance payments to receive medical benefits in cases of illness or injury

• 厚生年金 / kousei nenkin / welfare pension : pension contributions for retirement

• 介護保険 / kaigo hoken / nursing insurance : payment to receive long-term care services in the future (applicable for those aged 40 and above)

• 雇用保険 / koyou hoken / unemployment insurance : insurance payments to receive benefits if become unemployed

• 所得税 / shotokuzei / income tax : tax on income

• 住民税 / juuminzei / resident tax : tax to maintain administrative services in the area you live 

The amount of deductions depends on the amount of salary received and the previous year’s income. 

Find a Job in Japan with WeXpats

The average salary in Japan for foreigners and locals is expected to fluctuate. There are many factors at play including commodity prices, the pandemic, and global economic conditions. If you are considering working in Japan, we recommend checking the economic trends before making a decision.

If you are not pleased with your current salary or want better employee benefits, then you can try changing jobs. And, WeXpats can help you with that.

WeXpats operates a service for foreign nationals who want to work in Japan. There are jobs in a variety of industries.

① Search Jobs Yourself 

WeXpats Jobs is a job site for foreign nationals who want to work in Japan. You can search for jobs in 11 languages (English, Vietnamese, Korean, Indonesian, Traditional Chinese, Simplified Chinese, Burmese, Thai, Spanish, Portuguese), including Japanese. Find jobs that suit you by specifying your Japanese language level, occupation, location, and etc. 

② Receive Job Offers from Companies 

Complete this short questionnaire on WeXpats Jobs to receive updates about jobs that match your desired work conditions. It’s completely free to use, so register as a member using the button below to find a job that suits you! 

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③ Speak to a Career Advisor

WeXpats Agent is a career support service brought to you by WeXpats Jobs. Speak to our bilingual career advisors in English or Japanese, and get introductions for full time positions to companies that best fit you. As we receive job ads with the intention of introducing them to foreign nationals in Japan, we can suggest jobs to you right away.

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