Average Salary in Japan 2025: Latest Insights on Tokyo and Beyond

Japan’s average salaries have been on the rise, reaching their highest levels in years as of early 2025. In this blog, we’ll explore how much workers in Japan earn on average – annually and monthly – and how salaries differ between bustling Tokyo and other regions like Osaka, Fukuoka, and Hokkaido. We’ll also break down earnings by industry (IT, finance, manufacturing, healthcare, education, etc.) to see which sectors pay the most. Finally, we’ll look at recent trends and how 2025 compares to 2024, drawing on the latest data from Japanese sources such as the Ministry of Health, Labour and Welfare and major career surveys. The goal is to give an up-to-date, comprehensive picture of Japan’s salary landscape in an approachable way.

Key Takeaways

• National Average Salary (2025): Japan’s national average annual salary is around ¥4.6 million (approximately $32,000 USD). This works out to roughly ¥380,000 per month. This is a general figure including all workers; full-time regular employees tend to earn more, while part-timers earn less on average.
• Tokyo vs Other Regions: Tokyo remains the top-paying area. Tokyo’s average is about ¥4.7–5.1 million per year (around ¥471万円 according to one survey), roughly $33k USD. This is significantly higher than in other regions – for example, Osaka averages around ¥4.07 million (約407万円), and regional centers like Fukuoka and Hokkaido are about ¥3.8–3.9 million (約380万～390万円). The Kanto area (Tokyo/Yokohama region) generally tops the list, while Kyushu, Tohoku, and other rural regions sit lower.
• Industry & Occupation Differences: Salary levels vary widely by industry. High-paying sectors include finance and high-tech fields. For instance, the finance industry’s average is about ¥4.91 million, and IT/telecom is around ¥4.60 million. Manufacturing is also high at ¥4.8 million. In contrast, service-oriented sectors pay less – e.g. retail/food service averages only ¥3.66 million. Occupation matters too: highly specialized roles like medical doctors earn around ¥10–11 million on average, and certain finance professionals (e.g. analysts, fund managers) often average above ¥8–9 million. Meanwhile, teachers in public schools earn a respectable ¥6–7 million on average, which is above the national mean, and jobs like nursing or entry-level office work tend to be in the lower millions.
• Trends from 2024 to 2025: Salaries in Japan have been trending upward. The average pay in 2024 was higher than 2023, and 2025 continues this rise. For example, one major survey found the overall average in 2024 was ¥4.26 million, up ¥120,000 from the previous year. Government data similarly showed an increase – the National Tax Agency reported an average of ¥4.60 million (up from ~¥4.43 million the year before). Driving this trend are significant wage hikes: in the 2024 spring labor negotiations, large companies agreed to raises averaging 5.33%, the biggest jump in 33 years. Wage growth has been boosted by economic recovery, labor shortages, and inflation, marking a clear shift from the stagnation of previous decades.
• Regional and Industry Outlook: Virtually all regions and industries saw salary increases from 2023 into 2024. In fact, 44 of 47 prefectures had higher average incomes than the prior year. Kanagawa and Nagasaki led with the biggest jumps ( ¥170,000). Industries like finance, manufacturing, construction, and IT are at record-high average pay levels as of 2024. This broad-based growth is a positive sign for workers, though Japan’s overall average pay still remains lower than some other G7 nations when converted to dollars (partly due to exchange rates and a higher proportion of part-time workers).

Now, let’s dive deeper into each of these points for a clearer understanding of Japan’s salary landscape in 2025.

National Average Salary in Japan (Annual & Monthly)

Understanding the national average salary gives a baseline for what typical workers earn in Japan. According to the latest data from the National Tax Agency (国税庁) for 2023, the average annual income of a worker in Japan is about ¥4.60 million. In monthly terms, ¥4.60 million per year comes out to roughly ¥383,000 per month. For reference, that’s approximately $32–33k USD per year in early 2025 exchange rates.

It’s important to note what goes into this “average.” Japan’s figure covers all full-time employees who worked the entire year, across all industries and regions. The median income (the middle value) is a bit lower – around ¥3.51 million – indicating that a large portion of workers earn in the ¥3–4 million range, with fewer people pulling the average up into the ¥4–5 million range. The average age of salary earners in this data is about 47 years, with an average of 12.5 years at their company.

To put Japan’s average in perspective: ¥4.60 million is lower than the average in the United States or Western Europe in dollar terms, but Japan also has a relatively low unemployment rate and a high proportion of part-time or contract workers which brings the average down. If we look only at full-time regular employees, other surveys show a higher average (for example, one bank analysis put full-time workers’ average around ¥5.30 million.

Additionally, many Japanese companies pay generous bonuses seasonally rather than in monthly salary, which can affect annual income calculations.

Monthly vs Annual Salary: In Japan, people often discuss salaries in annual terms (“年収”) since it includes the bonuses that come in summer and winter. The average monthly base salary might be around ¥300,000, but with bonuses the total annual reaches the figures above. For instance, an employee might have a base salary of ¥250k–¥300k per month and receive the equivalent of 2–4 months’ salary as bonuses across the year. So if you are planning to work in Japan or negotiate pay, keep in mind whether figures are being quoted as monthly salary (月給) or total annual package including bonuses.

Minimum Wage Context: While discussing averages, it’s worth noting the minimum wage as a floor. Japan’s minimum wage varies by prefecture. As of late 2024, the national average minimum wage was about ¥961 per hour (roughly $6.70 USD/hour) and Tokyo’s was the highest at ¥1,113/hour (about $7.70 USD/hour). These minimums saw a significant hike in 2024 as well, reflecting government efforts to boost workers’ income. However, most full-time workers earn well above these hourly minimums; a full-time minimum wage job would be around ¥1.9–2.0 million per year, far below the national average we discussed.

In summary, the typical Japanese worker in 2025 earns around ¥4 to ¥5 million a year, which affords a middle-class lifestyle in most parts of Japan. But this national average conceals a lot of variation – especially between major cities and rural areas. Next, we’ll compare different regions, starting with Japan’s megacity, Tokyo.

Salary Breakdown by Industry and Occupation

It’s not just where you work, but what you do that determines your paycheck. Japan has a wide variance in salaries across industries and professions. Here, we’ll break down some key sectors and jobs:

• Finance and Banking: Jobs in finance are among the highest paying in Japan. Broadly, the finance industry averages around ¥4.91 million, topping the charts among major industry categories. Within finance, certain roles go much higher. For instance, the niche field of venture capital/private equity had an average of ¥8.16 million in 2024 – reflecting the hefty pay in investment firms. Other finance jobs like securities brokers and trust bankers average around ¥6.1–¥6.2 million. In terms of occupations, financial specialists dominate the top earnings: Corporate analysts average about ¥9.11 million, fund managers/dealers around ¥8.73 million, and investment bankers around ¥8.23 million. These figures show that if you have the skills for high finance, Japan rewards you very well.

• IT and Technology: The IT/communications sector is another high-paying field, with an average around ¥4.60 million. Tech salaries in Japan are healthy, though not as sky-high as finance. Experienced software engineers, project managers, or IT consultants can definitely earn above the average – for example, IT consultants in their 40s can earn in the ¥8–9 million range. There’s also high demand for specialized tech roles (AI engineers, data scientists), which can command premium pay. Overall, tech salaries have been rising due to talent shortage; the IT industry average is noticeably higher than the all-industry average. So, while Japan’s tech pay isn’t Silicon Valley level, it’s one of the better fields in the country.

• Manufacturing and Engineering: Japan’s many manufacturers (automotive, electronics, machinery, etc.) offer solid salaries. The broad “manufacturer” category averaged ¥4.81 million. Within this, there are variations: high-tech manufacturing (like electronics or automotive) tends to pay more, especially at big firms. Large manufacturers often pay in the ¥5–7 million range for mid-career engineers. For example, a pharmaceutical manufacturer had an average around ¥6.76 million, and major automotive companies often report average salaries around or above ¥7 million. Traditional manufacturing roles (plant managers, R&D engineers) are respected and can lead to good earnings over a career.

• Medical and Healthcare: The healthcare field is a bit polarized. Medical doctors are at the very top of the personal income scale – averaging about ¥10.89 million annually, which is roughly $75k USD. This is for employed doctors; those in senior positions (chief physicians, hospital directors) can earn more (¥13–20 million). However, not all healthcare jobs pay that well. Nurses, medical technicians, and care workers earn much less, often in the ¥3–5 million range depending on experience. Pharmacists average around ¥5.6 million. So the healthcare sector ranges from some of the highest-paid individuals (doctors) to some lower-than-average roles (elderly care workers can be in the ¥2–3 million range). Overall, the category “medical/pharmaceutical” tends to rank high in industry pay because of the inclusion of doctors and pharma companies. Many of the top-paying industries in 2024 were medical-related manufacturers – such as makers of medical devices or clinical testing equipment (commonly around ¥5.5–¥5.9 million average).

• Education: One might assume education is low-paid, but in Japan teachers are relatively well-compensated, especially in the public sector. The average for school teachers was around ¥6.6–¥7.4 million (primary school ~¥6.6M, middle ~¥7.4M, high school ~¥6.8M). These figures include bonuses and reflect that many teachers are older (it’s a career with pay increasing by seniority). Education as a sector doesn’t drag the average down – in fact, it’s above the national mean. Entry-level teachers start lower (around ¥2.5–¥3M), but the steady raises and bonuses make it a stable-income career. Private sector education jobs (like cram school instructors or university lecturers) vary widely, but prestigious universities also pay professors quite well. In contrast, academic research positions (PhDs working as researchers) often rely on grants and can be more modestly paid unless one becomes a professor.

• Retail, Food Service, and Hospitality: At the lower end of the pay scale, we have sectors like retail, restaurants, and hospitality. These jobs often have many part-time workers and lower wages. The combined category of “retail/food service” has an average annual salary of about ¥3.66 million, the lowest among major industry groupings. Many such jobs hover around the minimum wage or slightly above for hourly pay, especially at entry level. A convenience store manager or restaurant supervisor might earn in the ¥3–4 million range. Even at the high end, a retail corporate worker (in head office) might earn ¥4–5 million at mid-career, which is still below other industries’ averages. The good news is this sector has seen wage increases, but comparatively, these fields remain the least lucrative in Japan.

• Services and Others: There’s a broad “service” sector which includes consulting, marketing, HR, travel, etc. This category’s average is around ¥3.88 million. However, within services, there are some high-paying niches. For example, consulting firms and think-tanks had averages above ¥5.3 million, and financial advisory services (FAS) were about ¥6.22 million, pulling up the overall category. On the other hand, fields like tourism or hospitality in the service sector are much lower (travel agencies might be ~¥3.5M). So “service” is a mixed bag. Another field is construction/real estate, which averaged ¥4.41 million – these jobs (architects, project managers, realtors) pay around or slightly above the national average, especially boosted by a construction boom in recent years.

In summary, industry matters a lot: Choose finance or tech, and you’ll likely earn 20–50% above the national average. Go into retail or food service, and you might earn 10–20% below average (at least in early career). Of course, personal factors like your experience, education, and company size also play a huge role. For example, an engineer at a large auto company could out-earn a junior banker, and a senior civil servant might earn more than a startup tech employee. But looking at broad trends, it’s clear that financial services, technology, trading companies, and certain manufacturing industries are the top payers, while hospitality, retail, and some caregiving roles are on the lower end.

One more note: Japan historically had a tradition of raises with tenure – meaning if you stay in the same company, your pay rises steadily each year and peaks in your 50s. From the age data, we indeed see average incomes rise from ~¥2.67M in early 20s to ~¥5.45M at 55–59 years. After 60 it drops as many switch to lower-paid reemployment. This seniority-based pay is changing slowly (with more performance-based pay for younger workers), but it still influences how salaries are distributed across age and position.

Trends and Changes: 2024 vs 2025

The landscape of salaries in Japan has been changing, especially in the past two years. After a long period of stagnation, there are signs of real improvement in wages around 2024 and into 2025. Let’s discuss the trends and what’s new compared to a year ago:

• Upward salary momentum: Multiple data points confirm that salaries rose from 2023 to 2024 and are at their highest in recent memory. Doda’s large-scale survey reported the average annual salary in 2024 was ¥4.26 million, up ¥120,000 from the previous year. Similarly, official tax data showed a climb from about ¥4.43M (2022) to ¥4.60M (2023). In percentage terms, that’s roughly a 3–4% increase in one year – quite significant for Japan. It indicates that companies are finally responding to pressures to increase pay.

• Historic wage hikes: A big driver was the 2024 Shuntō (spring wage negotiations). Major companies, under pressure from both the government and the tight labor market, granted substantial raises. The average raise at major firms was ¥17,415 per month, or 5.33% year-on-year — the first time in 33 years that average raises exceeded 5%. Even smaller companies, which traditionally give smaller raises, showed improvement. Surveys indicated that even at firms with fewer than 100 employees, average raises were around 4% in 2024. This widespread bump in base pay is a primary reason the 2024 and 2025 averages are up.

• Inflation and cost of living: One context for these raises is that the cost of living in Japan has been rising after a long deflationary period. Energy and food prices increased in 2022–2023, so real wages (inflation-adjusted) were actually under pressure. The government has repeatedly called for businesses to raise salaries to help workers cope and to spur domestic consumption. These calls seem to have had some effect. By 2025, many workers are finally seeing higher paychecks, which may improve real income if inflation stabilizes. Still, despite nominal wage increases, real wage growth remains mild when adjusted for inflation (which was around 3% in 2023).

• Labor shortages: Another factor in rising pay is Japan’s labor shortage. The unemployment rate is about 2.6% (very low), and with an aging population, employers are struggling to fill positions. Sectors like construction, IT, healthcare, and even retail are facing worker shortages. This competition for talent is forcing companies to offer higher starting salaries or better raises. Convenience store chains have boosted wages for store staff, and IT companies are offering more to hire engineers. This is a stark change from a decade ago, and it bodes well for continued wage growth if the economy stays robust.

• Comparison to 2024: Based on early indicators, 2025 is continuing the trend. Many companies announced in early 2025 that they will again raise salaries or bonuses. The ongoing spring wage negotiations are expected to also result in sizable raises, though perhaps not as high as the 2024 record. Some forecasts predict wage growth of around 3–4% for 2025. If that holds, by the end of 2025 the national average could inch closer to ¥4.8M. Revisions to the minimum wage in late 2024 (which raised it by a record average of ¥43 nationwide) will also feed into slightly higher averages, especially in lower-paid sectors.

• Sector-specific trends: In 2024, some industries saw bigger jumps than others. Finance had a big year, with an average ¥220k increase, likely due to hot markets and competition for talent. Manufacturing and construction also saw above-average raises (around ¥150k), helped by a weak yen benefiting exporters. Even retail and food service, which typically lag, saw about ¥70k on average — modest, but notable. Regionally, Kanagawa and some other areas had large jumps (e.g., Kanagawa’s average rose by ¥170k to ¥4.52M), possibly reflecting big tech and pharma activity in Yokohama. This suggests that while everyone got a lift, the biggest gains were in already high-paying areas and industries, which could slightly widen inequality between top and bottom earners. The government is watching this and encouraging raises at the low end to ensure balance.

Looking ahead, the outlook for salaries in Japan is cautiously optimistic. Many experts believe that sustained wage growth is needed to cement economic recovery. The Bank of Japan has indicated it might adjust monetary policy if wages continue to rise, aiming for stable 2% inflation. Companies are also realizing that to secure talent — especially younger workers — they need to offer competitive pay. There’s also more job hopping in Japan’s younger generation than before, which pressures employers to move faster on pay raises.

In comparison to 2024, 2025 salaries are on track to be higher across the board. It’s an encouraging sign for employees. However, challenges remain: Japan’s average pay is still lower than in some other developed countries, and with the yen’s exchange rate, international purchasing power has declined. This could affect foreign professionals considering Japan, or companies trying to hire internationally. On the other hand, Japan has become relatively more affordable for many foreign businesses or remote workers.

Conclusion

The data as of April 2025 paints a clear picture: Japan’s salaries are rising, and the country is emerging from a long period of wage stagnation. The national average salary is about ¥4.5–¥4.6 million per year (≈$32k), and likely a bit higher by the end of 2025. Tokyo leads with averages around ¥5 million, while Osaka and Nagoya are slightly lower (~¥4 million), and regions like Kyushu or Hokkaido are in the ¥3.7–¥3.9 million range. Your earnings potential in Japan will greatly depend on the industry: high-end finance or tech jobs can pay double the national average, while retail or food service jobs may pay only around two-thirds. Occupation and skills also matter — advanced degrees or specialized certifications (IT, finance, medical, etc.) often translate into higher pay.

Compared to 2024, workers in 2025 are generally better off, thanks to substantial raises implemented across many companies. The trend is supported by government policy, corporate profits, and labor market dynamics. If you’re considering a career move in Japan or negotiating a salary, it’s a good time to do so.

From an employee’s perspective, it’s wise to research your specific field and region. Tokyo might offer the highest pay, but also comes with the highest cost of living. Some regional cities like Fukuoka offer a growing tech scene with slightly lower pay but also lower expenses — the trade-off may be worthwhile. For industries, if salary is your priority, fields like finance, consulting, tech, or pharmaceuticals tend to pay well. Education or public service, while not always flashy at the start, can also offer good stability and growth over time.

In conclusion, the average salary in Japan in 2025 is healthy and improving. It reflects a country in transition — balancing traditional employment practices with new pressures and opportunities. With the economy on a recovery path, there is hope that these salary gains will continue, benefiting workers across Japan’s regions and industries. Whether you’re a job-seeker, an expat, or just curious, this should give you a clearer picture of what income to expect and how Japan’s salary trends are evolving.