The average salary in Japan is around ¥5 million per year, though this depends on job type and location. Tokyo tends to offer higher wages, while daily living expenses remain relatively affordable nationwide. Major industries like technology, finance, and engineering offer above-average pay, while service jobs often pay less. Experience, education, and language skills also influence earnings.

Typical Income Levels Across Japan

Income in Japan can differ quite a lot depending on where you live, your job, and how many people are in your household. On average, households with two or more members make about ¥636,155 per month (around USD 4,700). However, this number only gives a general idea and doesn’t fully show the differences between regions, especially in big cities like Tokyo, where living costs are much higher. So, while the national average is helpful for broad comparison, it doesn’t always reflect the real financial situation of families living in Japan’s most expensive areas.

Average household income in Japan

How Much Do Workers Earn in Tokyo?

The average monthly salary for workers in Tokyo is about 576,000 yen (around 3,703 USD), which is noticeably higher than the national average of roughly 515,000 yen (3,794 USD) per month. This reflects Tokyo’s role as Japan’s leading economic and financial centre, home to many large corporations and a wide range of job opportunities.

The minimum wage in Tokyo is currently 1,113 yen per hour (about 7.68 USD), the highest in the country. However, living costs in Tokyo are also higher than in other regions. Monthly expenses for a single person typically range from 210,000 to 270,000 yen (approximately 1,450 to 1,860 USD), covering rent, food, and other daily needs.

To live comfortably in Tokyo, workers usually need a net monthly income between 450,000 and 500,000 yen (about 3,100 to 3,450 USD) to cover their expenses and save some money. This income level is generally achieved by people with higher education or those working in well-paying sectors such as technology, finance, and healthcare.

In summary, while salaries in Tokyo are higher compared to other areas, the cost of living is also significantly greater. Therefore, workers should carefully balance their income and expenses to maintain a stable and comfortable life in the city.

Tokyo salaries high, living costs higher

What’s the Pay Like in Yokohama?

The average monthly salary in Yokohama is around 566,000 yen (about 3,639 USD), which is higher than the national average and second only to Tokyo. The yearly average income is approximately 6,486,661 yen, with an hourly wage of 3,119 yen.

Yokohama, Japan’s second-largest city, is known for its diverse economy and its proximity to Tokyo. It hosts major companies like Nissan and Isuzu. Salaries in Yokohama reflect strong growth in industries such as technology, manufacturing, and financial services.

The minimum wage in Yokohama (located in Kanagawa Prefecture) is currently 1,112 yen per hour, just slightly below Tokyo’s rate. However, living expenses in Yokohama are much lower than in Tokyo, with rent for a one-bedroom apartment in the city centre around 119,000 yen per month. Overall, Yokohama offers attractive pay combined with reasonable living costs, making it a great choice for workers who want to live in a modern city without the high prices of Tokyo.

Yokohama high salary lower living cost

Minimum Wage Laws and Updates in Japan

As of May 2025, Japan’s minimum wage continues to rise to help workers cope with inflation and the growing cost of living. The national average minimum wage is currently about 1,054 yen per hour, with projections to increase to 1,090 yen per hour by the end of 2025.

Minimum wages vary by region and industry, reflecting local living expenses and economic conditions. For example, Tokyo offers the highest minimum wage at 1,163 yen per hour, while areas like Akita have lower rates around 951 yen per hour.

The Japanese government, led by Prime Minister Shigeru Ishiba, aims to raise the average minimum wage to 1,500 yen per hour by the end of this decade, which would be a 42% increase from today’s level. However, many small and medium-sized businesses, which employ about 70% of the workforce, are concerned about sustaining such wage hikes because labour costs already account for up to 70% of their profits.

To support both companies and employees, the Ministry of Health, Labour and Welfare (MHLW) has introduced subsidy programs designed to encourage workplace reforms, promote job transitions, and reduce income disparities between regular and non-regular workers.

These measures demonstrate Japan’s commitment to improving labour conditions and securing a decent standard of living for its workforce while fostering sustainable economic growth through higher incomes and increased domestic spending.

Japan rising minimum wage and impact

Wage Standards by Prefecture

As of May 2025, Japan’s minimum wage is set differently depending on the region and industry. This reflects variations in living costs and local economic conditions. The current national average minimum wage is about 1,055 yen per hour, the highest ever recorded. Here are the hourly minimum wages in some key prefectures:

• Tokyo: 1,163 yen/hour – the highest in the country
• Kanagawa: 1,112 yen/hour
• Osaka: 1,064 yen/hour
• Aichi: 1,027 yen/hour
• Saitama: 1,028 yen/hour
• Chiba: 1,026 yen/hour
• Kyoto: 1,009 yen/hour
• Hiroshima: 1,020 yen/hour
• Hokkaido: 1,010 yen/hour
• Akita: 951 yen/hour – the lowest nationwide

Currently, 16 prefectures have minimum wages exceeding 1,000 yen per hour, which is double the number from last year. 

Besides regional rates, certain industries have their minimum wages that are usually higher than the standard.

• Steel industry: 1,114 yen/hour
• Machinery manufacturing: 1,070 yen/hour
• Electronics manufacturing: 1,045 yen/hour

These specialised wages typically apply to jobs that require advanced skills or involve demanding working conditions. The rising minimum wage highlights the government’s efforts to improve workers’ living standards and encourage domestic spending. However, this increase also presents challenges for small and medium-sized enterprises trying to maintain profitability. Workers should stay informed about the latest minimum wage updates in their area and industry, and carefully review their employment contracts to ensure they comply with current laws and protect their rights.

What Counts as a Decent Salary in Japan Today?

The average annual salary in Japan ranges between approximately 5.4 million and 6.5 million yen (around 37,000 to 45,000 USD), depending on the industry, educational background, and region of employment. Every month, the average income is about 515,000 yen (3,794 USD), while the median salary stands at 472,000 yen (3,257 USD). This reflects the median salary, meaning earnings are split evenly above and below this line.

To be considered as earning a “good salary” in Japan, one’s income generally needs to exceed the median and cover living expenses comfortably, especially in major cities like Tokyo, where the cost of living is significantly higher. A net monthly income ranging from 450,000 to 500,000 yen (approximately 3,100 to 3,450 USD) is often viewed as sufficient for a comfortable lifestyle with some savings.

Higher salaries are commonly found in fields such as information technology, finance, and healthcare, where annual earnings can reach between 8 million and 12 million yen (56,000 to 81,000 USD) or even more. Additionally, factors like education level, work experience, and geographic location play a crucial role in determining pay.

In summary, what qualifies as a “desirable salary” in Japan varies based on several factors but typically means earning above the median and having enough income to live well, particularly in urban areas with steep living costs.

Japan good salary above median income

Net Income Explained: The Salary That Hits Your Bank Account

When working in Japan, the amount you take home after deducting taxes and mandatory insurance contributions is often less than your total pre-tax salary. Understanding how your net pay is calculated can help you manage your finances more effectively.

What Gets Deducted From Your Salary in Japan?

When working in Japan, your gross salary (the full amount before deductions) isn’t what you take home. Several mandatory deductions are made before you receive your net pay:

Income Tax (所得税 – Shotokuzei): A progressive tax ranging from 5% to 45%, depending on your annual earnings.
Resident Tax (住民税 – Jūminzei): Roughly 10% of your taxable income, typically charged from your second year of residence in Japan.

Workplace Benefit Program (社会保険 – Shakai Hoken):

• Health Insurance (健康保険): About 5%、 varying slightly by region.
• Pension (厚生年金): Around 9.15% of your gross salary.
• Unemployment Insurance (雇用保険): Approximately 0.6%.

These insurance costs are usually shared equally between you and your employer.

Example: Earning ¥6,000,000 Per Year

Let’s say you earn a gross annual salary of ¥6,000,000 (about ¥500,000/month). Here’s an approximate breakdown of deductions:

Category	Estimated Amount
Income Tax	¥2,234,695
Resident Tax	¥46,929
Health Insurance	¥68,388
Pension	¥59,475
Unemployment Insurance	¥18,000
Total Deductions	¥2,427,487
Net Annual Salary	¥3,572,513 (~¥297,709/month)

How to Work Out Your Monthly Earnings After Tax

To find out how much you’ll receive each month, follow these basic steps:

• Determine Taxable Income: Subtract social insurance and applicable allowances (e.g., ¥380,000 per dependent) from your gross salary.
• Apply Income Tax Rates: Use Japan’s progressive tax brackets to calculate your income tax.
• Estimate Resident Tax: It typically amounts to about 10% of your earnings before tax.
• Account for Employee Insurance Payments: Consider costs tied to medical care, future pension payouts, and job protection.

Japan’s Best-Paying Jobs in 2025

Below is a clear overview of Japan’s best-paying careers in 2025, including estimated annual earnings and key responsibilities for each role:

N.o	Job Title	Average Annual Salary	Job Summary
1	Chief Executive Officer (CEO)	¥55,000,000	Leads company strategy and operations; the top authority in decision-making.
2	Chief Financial Officer (CFO)	¥30,000,000	Manages financial planning, reporting, and ensures fiscal stability.
3	IT Director	¥22,000,000	Oversees technology systems and aligns IT goals with overall business strategy.
4	Airline Pilot	¥17,000,000	Flies commercial aircraft and ensures the safety of all onboard.
5	Neurosurgeon	¥17,000,000	Specialises in surgeries involving the brain and nervous system; highly skilled role.
6	HR Director	¥17,000,000	Drives workforce strategy, recruitment, and employee engagement.
7	Cybersecurity Engineer	¥16,000,000	Protects IT infrastructure against cyber threats and data breaches.
8	Marketing Director	¥15,000,000	Develops marketing campaigns and manages brand positioning.
9	Investment Banking Analyst	¥14,000,000	Provides market insights, handles M&A deals, and supports corporate finance.
10	Software Engineer	¥12,000,000	Designs and maintains software systems used across industries.

If you’re aiming for a top-paying job in Japan, here are a few key things to keep in mind:

• Top Fields: The highest salaries are found in finance, technology, healthcare, and aviation.
• Requirements: These roles usually require strong qualifications and several years of experience.
• Best Cities: Tokyo, Osaka, and Nagoya are the main hubs for high-income careers.
• Language Tip: Knowing Japanese is a big advantage, especially in leadership or customer-focused positions.

Salary Comparison: Japan vs. Other Countries

Considering a job abroad? Exploring how average incomes vary between countries can give you a clearer picture. The chart below outlines gross annual earnings across several major economies in 2024 – 2025, with approximate values shown in USD for easy reference.

Country	Average Gross Salary (Local Currency)	Equivalent in USD
Japan	¥4,553,218/year	~$30,993
USA	$66,622/year	$66,622
UK	£37,430/year	~$47,000
Germany	€54,800/year	~$59,000
Australia	A$100,000/year	~$68,000

Looking at salary differences between countries isn’t just about who earns the most; it’s about understanding the full picture. Here’s what stands out when comparing Japan to other major economies:

• Top Earners: Australia and Germany offer some of the most attractive average incomes on the list.
• Living Expenses: In places like Australia, higher pay often goes hand in hand with a high cost of living, especially in urban centres.
• Japan’s Advantage: Although wages tend to be lower, Japan makes up for it with affordable healthcare and excellent public services.
• What You Keep Matters: Taxes and social contributions can greatly affect your final paycheck. For instance, deductions in Germany are notably high.
• Location Drives Pay: Salaries vary not just by country, but also by city, sector, and job level.

Conclusion

Although the Average Salary in Japan might not be as high as in certain other countries, the reasonable cost of living and reliable public services help create a well-balanced lifestyle. If you’re thinking about relocating and need help with housing, Arealty.jp offers free support to guide you in finding a rental that suits your needs.