Average and median salary in Japan (2026)
- Average monthly wages in Japan reached ¥336,485 in February 2026, per the MHLW Monthly Labour Survey. That is approximately $2,130 per month.
- This figure is affected by Japan’s biannual bonus system. Companies pay bonuses worth two to four months of base salary annually, split across summer (June) and winter (December) cycles. Monthly figures spike significantly in those months.
- The more reliable benchmark is the NTA’s Survey on Private-Sector Wages. It puts the average annual salary for private-sector workers at approximately ¥4,780,000 ($30,250).
- This breaks down as roughly ¥4,030,000 in base salary and ¥750,000 in average annual bonuses.
- The median annual salary sits at approximately ¥3,500,000 ($22,150). The ¥1,280,000 gap between mean and median is driven by high earners at major corporations and long-tenured employees whose pay rises significantly under Japan’s seniority-based system.
If you are benchmarking a hire in Japan, always quote and budget on total annual compensation, base plus bonus, not monthly base alone. A candidate quoting ¥350,000 per month may be expecting total annual compensation of ¥4,900,000 to ¥5,600,000 once bonuses are included.
Average salary in Japan by industry (2026)
Salary expectations shift significantly with seniority.
For international employers building teams in Japan, these ranges reflect what candidates in Tokyo and Osaka will benchmark against, where competition for experienced professionals is strongest.
| Seniority level | Estimated annual salary | Notes |
|---|---|---|
| Entry-level (0 to 2 years) | ¥3,000,000 to ¥4,000,000 ($18,990 to $25,320) | Graduate starting salaries rising sharply in 2025 to 2026 |
| Mid-level (3 to 7 years) | ¥4,000,000 to ¥6,000,000 ($25,320 to $37,975) | Strong demand in tech and finance |
| Senior (8 to 15 years) | ¥6,000,000 to ¥9,000,000 ($37,975 to $56,962) | Seniority premium significant at traditional firms |
| Executive / leadership | ¥9,000,000 to ¥20,000,000+ ($56,962 to $126,580+) | Large variation by company size and sector |
Year-over-year salary growth
- Nominal wages rose 3.3% year on year in February 2026, per MHLW data.
- Base pay is rising at the fastest pace in nearly 34 years.
- Real wages turned positive in January 2026 for the first time in 13 months. The 2024 and 2025 spring wage negotiations (shunto) delivered base pay increases exceeding 5% at major corporations, the strongest wage growth Japan has seen in over three decades.
- Broader professional market growth is running at 3% to 5% annually, with technology and financial services leading the growth.
Average salary in Japan by industry (2026)
In Japan, finance and utilities are the sectos that pay the most. Technology follows closely. Accommodation, food services, and retail sit well below the national mean.
Average annual salary by industry
| Industry | Average annual salary | vs National average |
|---|---|---|
| Finance and insurance | ¥6,380,000 to ¥8,100,000 ($40,380 to $51,265) | +33% to +69% |
| Utilities (electricity, gas, energy) | ¥6,080,000 to ¥7,700,000 ($38,480 to $48,735) | +27% to +61% |
| Information and communications technology | ¥5,680,000 to ¥7,300,000 ($35,950 to $46,202) | +19% to +53% |
| Legal and professional services | ¥5,480,000 to ¥7,100,000 ($34,684 to $44,937) | +15% to +49% |
| Manufacturing (precision / automotive) | ¥4,660,000 to ¥6,080,000 ($29,494 to $38,481) | -2% to +27% |
| Construction and engineering | ¥4,460,000 to ¥5,680,000 ($28,228 to $35,950) | -7% to +19% |
| Healthcare and social services | ¥4,050,000 to ¥5,270,000 ($25,633 to $33,354) | -15% to +10% |
| Education | ¥3,850,000 to ¥5,070,000 ($24,367 to $32,088) | -19% to +6% |
| Retail trade | ¥3,240,000 to ¥4,050,000 ($20,506 to $25,633) | -32% to -15% |
| Accommodation and food services | ¥2,840,000 to ¥3,540,000 ($17,975 to $22,405) | -41% to -26% |
Information technology, financial services, engineering and advanced manufacturing, and healthcare are where international employers most commonly hire in Japan. Japan’s Specified Skilled Worker visa program has expanded access to overseas talent in several of these sectors, particularly healthcare and manufacturing.
Within these sectors too, however, there is some pay variance depending on where your employee is located.
Average salary in Japan by city and region
Tokyo pays roughly 35% above the national average. Other major cities sit closer to the mean. Regional cities and rural prefectures typically run 15% to 25% below.
Average annual salary by city and region
| City / region | Average annual salary | vs National average |
|---|---|---|
| Tokyo (Kanto) | ¥6,450,000 ($40,823) | +35% |
| Kanagawa / Yokohama (Kanto) | ¥5,530,000 ($35,000) | +16% |
| Osaka (Kansai) | ¥5,260,000 ($33,291) | +10% |
| Nagoya / Aichi (Chubu) | ¥5,100,000 ($32,278) | +7% |
| Fukuoka (Kyushu) | ¥4,290,000 ($27,152) | -10% |
| Tohoku / rural prefectures | ¥3,800,000 to ¥4,050,000 ($24,051 to $25,633) | -16% to -20% |
Tokyo’s premium comes from its concentration of corporate headquarters, financial institutions, technology companies, and professional services firms. Rural prefectures in Tohoku, Shikoku, and Kyushu tend to sit 10% to 20% below the national average.
One thing worth noting for hiring decisions: Tokyo’s cost of living is substantially higher than the rest of Japan. Cities like Fukuoka and Nagoya offer 30% to 40% lower living costs with only a 10% to 20% salary discount. For employees who can work remotely or are open to location, the difference in disposable income can be comparable.
These cost of living variations affect average salaries for a number of reasons. Understanding how region impacts minimum wages in Japan, is one of them.
Minimum wage in Japan: What employers need to know
Japan does not have a single national minimum wage. Rates are set at the prefectural level by the Central Minimum Wages Council under the MHLW, reflecting differences in cost of living and economic conditions across Japan’s 47 prefectures.
The national weighted-average minimum wage reached ¥1,121 per hour in October 2025. That is a record increase of ¥66, or approximately 6.3%, from the previous year’s average of ¥1,055. It is the largest annual minimum wage increase in Japan’s history since the current system was introduced in 1978.
For the first time, all 47 prefectures now exceed ¥1,000 per hour. At ¥1,121 per hour ($7.10), a full-time employee on a standard 40-hour week earns approximately $1,136 per month.
Key points for employers:
- Effective date: Between October 2025 and early 2026, depending on prefecture.
- Previous national average: ¥1,055 per hour (October 2024).
- Regional variation: Tokyo leads at ¥1,226/hour ($7.76); Kanagawa at ¥1,225; Osaka above ¥1,100. The lowest-rate prefectures (Okinawa, Kochi, Miyazaki) sit at ¥1,023/hour ($6.47).
- Annual review: The Central Minimum Wages Council reviews rates each summer. New rates take effect in October. Employers must apply each prefecture’s rate from its effective date.
- Sector-specific minimums: Some industries carry minimum wage rates set above the prefectural floor. Verify the applicable rate via the MHLW before setting pay.
- Government target: Japan has committed to raising the national average to ¥1,500 per hour by the late 2020s. Budget for continued increases of 5% or more per year.
For companies hiring in Japan, next step is understanding what sits on top of gross salary to impact the total employer costs.
What does it actually cost to employ someone in Japan?
Gross salary is only part of what you pay. Japan’s social insurance system requires employers to contribute to four separate schemes from the first month of employment. These contributions are not optional.
Japan calculates employer contributions on the employee’s standard monthly remuneration (hyojun hoshu geppu), which is reviewed each September. Welfare pension contributions are capped at ¥650,000 monthly standard remuneration. Above that level, no further pension contributions apply.
This reduces the effective on-cost rate for high earners.
Mandatory employer cost components
| Cost component | Rate | Example: ¥336,485/month gross ($2,130) |
|---|---|---|
| Welfare pension insurance | 9.15% of standard monthly remuneration | ¥30,788 ($195)/month |
| Health insurance (Kyokai Kenpo) | 4.99% to 5.67% depending on prefecture | ¥16,790 to ¥19,074 ($106 to $121)/month |
| Employment insurance | 0.95% of gross salary | ¥3,197 ($20)/month |
| Workers’ accident compensation | Risk-rated (0.25% to 8.8%) | Varies by industry |
| Total estimated on-cost | 15% to 16% above gross | ¥50,473 to ¥53,837 ($319 to $341)/month above gross |
Worked example
An employee in Tokyo earning ¥336,485 ($2,130) per month gross costs the employer approximately ¥386,958 to ¥390,322 ($2,449 to $2,471) per month total. That is before commuter allowances, which are near-universal in Japan and add ¥20,000 to ¥50,000 ($127 to $316) per month depending on commute distance.
Commuter allowances are technically discretionary but expected by every candidate. Employers who do not provide them are at a significant disadvantage when hiring. Budget for approximately $127 to $316 per employee per month.
Accurate payroll in Japan requires tracking social insurance contributions that recalibrate each September, income tax withholding based on individual employee circumstances, and year-end tax adjustment (nenmatsu chosei) obligations.
| Social insurance contributions, the September recalibration, and commuter allowance obligations all affect your total employment outlay in Japan. Use Multiplier’s employee cost calculator to get an exact total employment cost for your specific hire before you make an offer. |
How to hire in Japan without setting up a local entity
To employ someone in Japan, you need a registered legal entity there.
The usual options for entity setup in Japan are a Kabushiki Kaisha (KK, joint-stock company), a Godo Kaisha (GK, LLC equivalent), or a registered branch office. Setting up a KK takes six to ten weeks. After that, you still need to manage ongoing compliance with the Ministry of Justice, Japan Pension Service, Japan Health Insurance Association, and local tax authorities.
If you want to hire without that setup, an Employer of Record in Japan is the faster route.
The EOR handles contracts under the Labour Standards Act and Labour Contract Act, social insurance enrollment and contributions, income tax withholding (gensen choshu), year-end adjustment obligations, and all statutory leave. You manage the work.
For most international teams, an EOR like Multiplier is the more practical starting point. Many companies find that using an EOR rather than setting up a local entity saves months of setup time and significantly reduces ongoing administrative overhead, particularly when building a small team to start.
Hire and pay employees in Japan with Multiplier
Multiplier is a global employment infrastructure combining EOR services, COR, and global payroll. Designed for global teams, Multiplier is built on owned entities, native payroll engines, in-house compliance expertise, and integrated payments operating as one system across 160+ countries.
That gives companies one chain of accountability, local experts in every market, and complete visibility across their global workforce.
For companies expanding into Japan, that means:
- Entity-free hiring: Employ Japanese talent through Multiplier’s owned local entity. No KK setup, no Japan Pension Service registration, no entity maintenance overhead.
- Social insurance handled end to end: Welfare pension, health insurance, employment insurance, and workers’ accident compensation are calculated and remitted accurately every month, with 99.95% payroll accuracy. The September recalibration is managed automatically.
- Labour Standards Act compliance fully owned: Multiplier’s 160+ in-house legal and compliance experts handle Japan’s Labour Standards Act and Labour Contract Act obligations directly. There is no third-party handoff between your question and the answer.
- Year-end adjustment managed: Nenmatsu chosei obligations are handled in full each December, with no manual burden on your team.
- Full cost visibility before you hire: Model total Japan employment cost, including social insurance, commuter allowances, and statutory entitlements, before making an offer. Compensation decisions reflect actual outlay, not just gross salary.
- One accountable system across every market: Whether you are hiring in Japan or across 160+ countries, Multiplier provides a single chain of accountability across payroll, compliance, and employment, with no split responsibility across vendors.
Trusted by 2,700+ companies with $2B+ in wages processed and 99.95% payroll accuracy, Multiplier gives you the visibility, control, and peace of mind to build Japanese teams compliantly from day one.
Because Multiplier owns the full infrastructure stack, including a direct entity in Japan, every hire is backed by infrastructure Multiplier controls, not a third-party partner you have never spoken to. Talk to our team to get started.
FAQs
What is the average salary in Japan in 2026?
The average is approximately ¥4,780,000 ($30,250) annually per NTA data, including base salary and bonuses. The median of approximately ¥3,500,000 ($22,150) is a better benchmark for most hiring decisions. High earners at major corporations and long-tenured employees skew the mean upward. Always budget on total annual compensation, not monthly base salary alone.
How much does it cost to employ someone in Japan?
Approximately 15% to 16% above gross salary. This covers welfare pension at 9.15%, health insurance at approximately 5%, and employment insurance at 0.95%. For an employee earning ¥336,485 ($2,130) per month gross, total monthly employer cost is approximately ¥386,958 to ¥390,322 ($2,449 to $2,471), before commuter allowances. Use Multiplier's employee cost calculator for an exact figure.
What is a good salary in Japan?
Above ¥6,000,000 ($37,975) annually places an employee above the national average and in roughly the top 30% of private-sector earners. In Tokyo, ¥7,000,000 to ¥8,000,000 ($44,304 to $50,633) is the benchmark for experienced professional roles in technology and financial services.
Can I hire employees in Japan without setting up a company there?
Yes, via an Employer of Record in Japan. Multiplier employs workers in Japan through its owned local entity. It handles contracts, social insurance, income tax withholding, year-end adjustment, and Labour Standards Act compliance. You direct the work. Multiplier handles the legal obligations. See EOR services for more detail.
How does payroll in Japan work for foreign employers?
Japan uses a monthly payroll cycle. Employers withhold income tax at source (gensen choshu) and remit social insurance contributions monthly. A year-end tax adjustment (nenmatsu chosei) is required in December for most employees. Social insurance contribution rates are recalibrated each September based on updated standard monthly remuneration. For a full breakdown, see the payroll in Japan guide.
What is Japan's minimum wage in 2026?
The national weighted-average is ¥1,121 per hour ($7.10), effective October 2025. Rates are set at the prefectural level. Tokyo leads at ¥1,226/hour. The lowest-rate prefectures sit at ¥1,023/hour. The government has committed to raising the national average to ¥1,500 per hour by the late 2020s. Budget for annual increases of 5% or more.
What are the Japan-specific costs employers often miss?
Two come up regularly. First, commuter allowances: they are near-universal and expected by candidates, adding ¥20,000 to ¥50,000 per employee per month. Second, the biannual bonus: most employees expect summer and winter bonuses worth two to four months of base salary. Neither appears in gross salary figures but both affect your total employment cost significantly.
