How much is the salary in Japan?

How much is the salary get when work in Japan?

Salary in Japan

If you work in Japan, we will show you how much salary you will receive.
The information presented here is that of a typical Japanese company employee in his or her 30s.
Please use this as a guide when considering finding a job in Japan.
Or it can be helpful when considering doing business with Japan.

Average salary of a company employee in their 30s in Japan

Let me start by explaining how salaries work in Japan.

In Japan, salaries are paid by the company on a monthly basis.
Payments are made on the 10th, 15th, or 25th of each month. (Paydays vary depending on the company.)
Many companies pay salaries on the 25th.

The average monthly income is 280,000-300,000 yen.
From this amount, taxes and pensions are collected by the Japanese government, so the actual amount you will receive is 240,000-260,000 yen.

The amount of money a salaryman in his thirties in Japan receives each month, expressed in each country's major currency, is as follows.
(Rate on July 17, 2021)

260,000 yen to
U.S. dollar    → 2,361.32 $
Euro        → 2,002.00 €
Pound           → 1,716.00 £
Taiwan dollar   → 66,049.62 NT$
Hong Kong dollar → 18,341.96 HK$
Chinese Yuan   → 15,297.62 ¥(CNY)
Rupiah       → 34,144,037.72 Rp
Philippine peso   → 118,890.20 
India Rupee    → 176,165.34 Rs
New Zealand dollar → 3,367.52 NZ$
Australian dollar  → 3,189.16 A$
Turkish lira    → 20,098.00 TL

Many companies pay bonuses in June and December, so if include those bonuses,  annual income is about 4,000,000 yen.

The amount of bonuses paid varies greatly from company to company.
Small companies pay a lower amount, sometimes as little as 30,000 yen.
On the other hand, some large companies pay as much as five months' salary per month.

For example, in March 2021, SONY made headlines when they announced that they would be paying out 7 months worth of bonuses.

What is the cost of living in Japan?

The typical average rent in Japan is between 70,000 yen and 100,000 yen.
Apartment entrance in Japan

Also compare rents in different currencies.

100,000 yen to
U.S. dollar    → 908.20 $
Euro        → 770.00 €
Pound           → 660.00 £
Taiwan dollar   → 25,403.70 NT$
Hong Kong dollar → 7,054.60 HK$
Chinese Yuan   → 5,883.70 ¥(CNY)
Rupiah       → 13,132,322.20 Rp
Philippine peso   → 45,727.00 
India Rupee    → 67,755.90 Rs
New Zealand dollar → 1,295.20 NZ$
Australian dollar  → 1,226.60 A$
Turkish lira    → 7,730.00 TL

For example, how about the cost of food?
If you buy one Big Mac from McDonald's in Japan, it costs 390 yen.
Big Mac

390 yen to
U.S. dollar    → 3.54 $
Euro        → 3.00 €
Pound           → 2.57 £
Taiwan dollar   → 99.07 NT$
Hong Kong dollar → 27.51 HK$
Chinese Yuan   → 22.95 ¥(CNY)
Rupiah       → 51,216.06 Rp
Philippine peso   → 178.34 
India Rupee    → 264.25 Rs
New Zealand dollar → 5.05 NZ$
Australian dollar  → 4.78 A$
Turkish lira    → 30.15 TL

In addition to this, the monthly cost of living is about 200,000 yen, including electricity and water bills etc...

How salaries are determined

In Japan, salaries vary according to the following three factors.

【1】Educational background
【2】Age
【3】Company size

Generally, in Japan, once you find a job, you work for that company until you retire.
In Japan, the mandatory retirement age is 65.
If work attitude is not too bad, it is unlikely that will be fired.

However, this method of employment has the disadvantage of not being evaluated based on individual ability.
It doesn't matter if you slack off to some extent or how hard you work, the salary you receive is the same.

I will start with item 【1】.
In Japan, academic background is important when entering a company.
If have graduated from a university, will receive the amount of money  mentioned earlier; if a high school graduate, salary will be 20% lower.
The amount of money does not change depending on the individual's ability, so if have not graduated from college, salary is bound to be lower.

Also explains the items in 【2】.
In Japan, the older, the higher salary will be.
Generally speaking, many people continue to work for the same company until retirement, so they become valued as people with a lot of experience within the company.
However, this condition applies only if continue to work for the same company.
If change jobs in 40s, will be treated as a "newcomer" and salary will be at the same level as in 20s.

The items in 【3】 are unavoidable conditions in capitalism.
The bigger the company and the more profitable it is, the more salary will receive.
Some companies pay very large bonuses, such as SONY, which I mentioned earlier as an example.

In addition to these conditions, there is a serious problem of discrimination in the terms and conditions of employment in Japan.
This is because these conditions are for men, and for women, in addition to these conditions, the salary will be about 10% lower.
In Japanese workplaces, women are not considered important workers because they may take time off from work or leave due to marriage or childbirth.

Japanese society as a whole is trying to solve the problem.

In Japan, many companies are now striving to change these conditions.
Instead of determining the amount of salary based on education, age, or gender, we try to pay individuals for their work efficiency and ability.

The number of companies that have implemented such good reforms without discrimination is still about 30% of the total number of companies in Japan, but it is hoped that this will improve in the future.

In terms of specific initiatives, regardless of age, those who meet the qualifications acquired and the abilities presented by the company are being paid more.
Women are employed at the same salary level as men, and more and more companies are providing daycare centers and nurseries in their workplaces.

In another 8-10 years, 90% of companies will have eliminated these discriminations.

Useful Japanese phrases

You can learn useful and basic Japanese.

●会社 [kaisha]
 Meaning : Company
●就職する。 [shuushoku suru]
 Meaning : Get a job.
●給料 [kyuuryou]
 Meaning : Salary
●家賃 [yachin]
 Meaning : House rent
●仕事をする。 [shigoto wo suru]
 Meaning : Do job.

If there's any other Japanese you'd like to know, just ask in the comments or on Twitter(@The_ROJ)!

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