Japan is one of the world’s top five largest economies, and its labor market is undergoing a major shift. Japanese labor leaders aim to secure 5% pay raises for the third year in a row in 2026. Despite a low unemployment rate at 2.6%, there hasn’t been any real wage growth (down -1.5% year-over-year in 2025), research shows.
Japan’s tech talent is highly competent in hardware-driven sectors like robotics, automotive technology, semiconductors, and telecommunications. For employers interested in recruiting Japanese talent, an important question is: what does competitive pay look like here?
What is the average salary in Japan?
For full-time professional roles, the average annual salary in Japan in 2026 is approximately ¥6.18 million (around US$39,800). Monthly, that breaks down to roughly ¥515,000 (about US$3,320) before taxes and social insurance deductions.
For employers focused on technology and digital talent, the numbers climb considerably. According to Robert Half, software engineers and IT workers can make between ¥7.5 million and ¥15 million per year (US$48,400-96,800), depending on their role and level of experience.
Remote and internationally hired developers are usually at the top of that range. According to self-reported data from platforms that track global tech pay, the average salary for remote developers in Japan is about US$68,000 per year. The Digital Nomad Visa in Japan, for skilled workers from around the world, has an income limit of ¥10 million. This shows where the market values top tech talent.
While nominal wages rose by 2.4% in 2025, real wages fell for the fourth consecutive year, catalyzed by high inflation. These trends have propelled the country’s push to boost wage expectations.
Average salary by job type in Japan (2026)
In Japan, salaries vary widely by job, industry, and whether a company operates in Japan’s domestic market or as part of a global organization. Technical and managerial jobs pay a lot more than the national average, while support and education jobs generally pay less than the average.
- Software Engineer. ¥8.5M (US$54,800)
- IT Project Manager. ¥9.4M (US$60,600)
- HR Manager. ¥7M (US$45,100)
- Accountant. ¥4.5M (US$29,000)
- Customer Support Specialist. ¥4.7M (US$30,300)
- English Teacher. ¥3.3M (US$21,300)
- Game Developer. ¥6.7M (US$43,200)
- Data Engineer. ¥10.5M (US$67,700)
- Engineering Manager / Tech Lead. ¥12.5M (US$80,600)
Average salary by major city in Japan
There isn’t just one job market in Japan. It’s more like a group of economies in different parts of the world, each with its own industries, skilled workers, and pay scales. Tokyo
Tokyo is the clear leader in Japan when it comes to salaries. Across all sectors, the average salary for professionals is between ¥6.5M and ¥7.5M (US$41,900 to US$48,400). The city is home to Japan’s biggest finance, technology, and multinational businesses.
Tokyo represents the upper echelon in tech jobs. Senior engineers and tech leads often make ¥12M or more. Employers also need to take into account that the cost of living is the highest in the country when setting pay.
Osaka
Osaka is Japan’s second-largest city in terms of economy, and on average, professional pay is about 10% to 15% lower than in Tokyo. The city has a strong base of industry and manufacturing, as well as many retail and logistics businesses.
Osaka is an attractive destination for global companies to hire Japanese talent because it has a large, experienced workforce that’s cheaper than in Tokyo. It’s also becoming a more important center for people with skills in life sciences and healthcare.
Nagoya
Nagoya is the Chubu region’s economic engine, and automotive manufacturing is a big part of what makes it unique. Companies like Toyota and their large networks of suppliers always need engineers, operations specialists, and supply chain professionals.
The average salary here is about the same as in Osaka, usually between ¥5M and ¥6M (US$32,200 and US$38,900). However, specialized automotive engineers can earn much more. Nagoya is a place where global companies in manufacturing or mobility tech can find good workers.
Fukuoka
Fukuoka is at the lower end of Japan’s salary range, with average salaries around ¥4.5M (US$29,000). However, that gap is starting to close. The city has invested heavily in building a startup ecosystem, which has attracted a younger, more global dynamic.
The Japanese government has actively supported Fukuoka as a startup hub, attracting both Japanese and foreign companies seeking cheaper places to do business outside Tokyo. Fukuoka has a lot of tech and creative talent that employers can hire for less money if they are open to remote-first or hybrid arrangements.
Kyoto
Kyoto’s economy is shaped by its schools, tourism, traditional crafts, and the service sector. This means that the average salary is lower, around ¥4.5M to ¥5M (US$29,000 to US$32,000). There are many top universities in the city, so it’s a great place to find research, engineering, and design talent at the start of their careers.
Companies from around the world working in advanced manufacturing, materials science, or semiconductors will find people here who are highly knowledgeable in these areas. That being said, salaries in Kyoto are lower than in Tokyo because the cost of living is lower there. This means that people expect to be paid differently.
Key factors that influence salary in Japan
Japan’s job market pays more for some things than others. It’s just as helpful to know what makes pay go up or down as it is to know the average numbers.
Job function and industry
Jobs in tech, finance, and pharmaceuticals are always above the national average, while jobs in education, retail, and hospitality are always below it. There can be a big difference between sectors. For example, a software engineer in the same city can make two to three times as much money as an English teacher.
Skills in both English and Japanese
In Japan, being fluent in both English and Japanese can get you a much higher salary, especially in multinational settings. TokyoDev’s 2025 developer survey found that bilingual engineers at global companies often earn 20% to 30% more than their monolingual counterparts in similar roles.
Experience and age
Japan’s traditional pay system, based on seniority, still affects pay at many companies in the country, where raises are based on both tenure and performance. Merit and market rate tend to matter more at companies that are based in other countries. This can speed up pay growth for high performers early in their careers.
Cost of living and region
People who work in Tokyo earn much more than those in Fukuoka or Kyoto. However, the higher cost of living in the capital is offset by higher pay. Employers who hire people from across Japan should take these regional differences into account when setting pay scales rather than using a single national standard.
Foreign vs. domestic company
Employees are aware that they’ll likely make more money working for a company based in another country or a multinational company. According to Robert Half, global companies usually pay higher base salaries and offer better total compensation packages than Japanese companies. This makes them better at attracting talent in a tight job market.
Size of the company
Japanese big businesses usually have more structured pay scales and better benefits packages. Small and medium-sized businesses, on the other hand, often offer flexibility or equity as compensation. This means that global companies hiring in Japan need to be clear about the total value of the job offer, not just the base salary.
FAQs
These are the questions employers and HR teams ask most often when they start thinking seriously about hiring in Japan. Here are direct answers.
What is the minimum wage in Japan?
As of 2025, the national weighted average minimum wage in Japan is about ¥1,055 per hour, which comes to about ¥2M per year (US$12,900) for full-time workers. The highest minimum wage in Japan is about ¥1,163 per hour in Tokyo. For employers looking to fill professional or skilled positions, the actual market pay is well above these levels.
What is the average salary in Japan in USD?
At the current exchange rate of about ¥155 per dollar, the average full-time professional in Japan makes a little over US$40,000 a year. That works out to about US$3,330 per month before taxes. It’s important to remember that changes in exchange rates can have a big effect on how these numbers look to employers around the world who are planning pay.
What is the average salary in Tokyo?
The average salary for professionals in Tokyo is between ¥6.5 million and ¥7.5 million per year (US$42,000 to US$48,400), which is well above the national average. In Tokyo, tech and finance jobs push those numbers up, and senior engineers and managers often make ¥12M or more. The higher pay is due to the capital’s abundance of global companies and its higher cost of living.
What is considered a good salary in Japan?
A salary of ¥7M to ¥8M (US$45,100 to US$51,600) per year is usually enough for a single person living in Tokyo. In a large city, ¥10M (US$64,500) or more is the usual amount a family or someone in a senior position needs to feel financially secure. Outside of Tokyo, these limits go down in line with the cost of living in each area.
Is the cost of living in Japan high?
It depends on where in Japan you’re looking. Housing and transportation are the main things that make Tokyo one of the most expensive cities in Asia. Fukuoka and Kyoto are two cities that have a much lower cost of living. This is one reason why they are good places for employers to build distributed teams across Japan. That gap in the region is an important factor to consider when designing pay packages that seem competitive in that area.
Are salaries in Japan increasing?
Yes and no. In 2025, wages went up by 2.4%. Leaders in Japan are asking for raises of 5% or more in 2026 negotiations, which is the third year in a row they have set that goal. But in 2025, real wages fell for the fourth year in a row as inflation outpaced nominal gains.
Hire Japanese talent with Pebl
Japan has a competitive job market and strict rules about compliance, so it’s important to get payroll right from the start. You can hire people in Japan without having to set up a local subsidiary because Pebl’s global EOR services take care of the legal entity, local payroll, and Japan-compliant employment contracts for you. Pebl makes it easy to hire a software engineer in Tokyo or a data expert in Fukuoka quickly and stay within the law.
Get in touch or learn more about Pebl as your EOR in Japan.
This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.
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Topic:
HR Strategies
